Best Bank FD Interest Rates

Best FD Interest Rates 2025: Which Bank is Offering the Highest Interest on FD?

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Best FD Interest Rates: If you are planning to invest in a Fixed Deposit (FD), now is a golden opportunity. Before the upcoming monetary policy review by RBI, major banks in India have increased FD interest rates. Some banks have also extended the deadlines for their special FD schemes. This makes it the perfect time to lock in high-interest rates for the long term.

Which Banks Have Increased FD Interest Rates?

  1. Canara Bank: This public sector bank has revised the FD interest rates for deposits below ₹2 crore, effective from December 1, 2024.
    1. Regular customers get 4% to 7.4% interest.
    1. The highest interest of 7.4% is on FDs for 3 to 5 years.
    1. Senior citizens get 4% to 7.9% interest.
  2. Karnataka Bank: This private sector bank is now offering interest rates ranging from 3.5% to 7.5%.
    1. Regular customers get a maximum interest rate of 7.5% on 375-day FDs.
    1. The rates for senior citizens are even more attractive.
    1. New rates are effective from December 2, 2024.
  3. IndusInd Bank: IndusInd Bank has made its FD rates more appealing.
    1. Regular customers get 3.5% to 7.99% interest.
    1. Senior citizens can get 4% to 8.49% interest.
    1. FDs for 17 to 18 months offer 7.99% interest, which can go up to 8.49% for senior citizens.
  4. IDFC First Bank: This bank has also revised the FD rates for deposits below ₹2 crore.
    1. Regular customers get 3% to 7.9% interest.
    1. Senior citizens get 3.5% to 8.4% interest.
    1. New rates are effective from November 26, 2024.
  5. Indian Bank: Indian Bank, a public sector bank, is attracting investors with its special FD schemes.
    1. The deadline for IND 300 and IND Super 400-day FDs has been extended to March 31, 2025.Regular customers get 7.3% interest on 300-day FDs, and senior citizens get 7.8%.
    1. Super senior citizens (above 80 years) can earn up to 8.05% interest under this scheme.

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How to Invest in FD the Right Way?

Experts suggest keeping a few things in mind when investing in FDs:

  • Diversification: Instead of investing all your money in one FD, divide it into 3-4 parts and invest in different duration FDs.
  • Callable vs Non-Callable FD: Callable FDs allow you to withdraw before maturity if needed. Non-Callable FDs don’t offer this flexibility but usually have slightly higher interest rates.
  • Maintain Liquidity: Investing in FDs with different durations ensures that you can access funds when needed by breaking one of the FDs.

Chances of Interest Rate Cuts

The RBI increased the repo rate to 6.5% by February 2023 but hasn’t changed it in the past 10 monetary policy reviews. However, there are signs of possible interest rate cuts in the market. This makes it a great time to lock in high-interest rates for the long term.

Also Read: Record-Breaking Rise in Gold Loans: 8 Times Faster Than Consumer Durable Loans?

Conclusion

If you have surplus funds and are considering investing in Fixed Deposits, now is the right time. Compare the interest rates of different banks and choose the right plan based on your needs and duration. While investing in FDs, make sure your capital remains safe and you benefit from liquidity.

Disclaimer: Investing in the stock market is subject to market risks. Please conduct your research or consult your financial advisor before investing. The information provided in this article aims to educate and inform the general public, investors, and traders.

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Disclaimer: Investing in the stock market is subject to market risks. Please do your research or consult your financial advisor before making any decisions. The information provided in this article aims to educate and inform investors and traders.

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