Best FD Schemes: Planning an FD Investment? These Banks Are Still Offering Over 8% Interest – Know the Latest Rates

With stock markets facing regular volatility, many personal finance experts are advising investors to allocate a portion of their savings toward safe investment options, and Fixed Deposits (FDs) top that list. Although FDs are generally associated with modest returns, they offer the safety and stability that market-linked products often lack.

Amid concerns over the Reserve Bank of India (RBI) cutting interest rates, many banks have lowered their FD returns. However, a few banks—especially Small Finance Banks—continue to offer FD rates of 8% and above, giving investors an excellent opportunity to lock in attractive yields for the long term.

Here’s a detailed look at which banks are currently offering the highest FD interest rates:

🌟 Suryoday Small Finance Bank: Up to 8.4% Interest

Suryoday Small Finance Bank is offering some of the highest FD returns available in the market right now. According to the bank’s official website:

• For a 5-year fixed deposit, the interest rate is 8.4%, with an Annual Percentage Yield (APY) of 8.67%.

• For FD tenures between 30 to 36 months, the bank is offering 8.15%, with an APY of 8.4%.

These rates apply to deposits below ₹3 crore, making it accessible for retail investors.

🏦 Utkarsh Small Finance Bank: Senior Citizens Get Up to 8.5%

Utkarsh Small Finance Bank is also offering competitive FD rates across multiple tenures:

• For FDs ranging from 371 to 729 days (just under 2 years), the interest rate is 8%.

• Senior citizens enjoy even higher returns:

  • 8.5% for FDs between 3 and 4 years

  • 8.25% for FDs above 4 years but less than 5

  • 8% for FDs between 4 and 5 years

These rates are also applicable to deposits below ₹3 crore.

💼 Jana Small Finance Bank: High Returns for High-Value Deposits

Jana Small Finance Bank has structured its FD offerings based on the deposit amount and tenure:

• For deposits of ₹10 lakh or more for a 5-year term, the bank offers 8.2% interest.

• Senior citizens can earn:

  • 8% for FDs of 181 to 365 days

  • 8.25% for FDs of 1 to 2 years

  • 8.2% for a 5-year term

While these rates are subject to conditions, they’re among the best available in the market currently.

📝 Things to Keep in Mind Before Investing in an FD

While FDs are a secure form of investment, it's essential to be cautious and well-informed:

• Interest rates can change frequently: Always check the latest rates with the bank before locking in your money.

• Early withdrawal penalties: If you break an FD before maturity, you may not get the promised interest and could incur penalties.

• Match investments with your goals: Before choosing a tenure, consider your financial goals, liquidity needs, and future requirements.

• Seek professional advice: If unsure, consult a certified financial advisor to guide your investment decisions wisely.

⚠️ Expert Advice Disclaimer

The investment suggestions and interest rate information provided above are based on publicly available data and expert opinions. They do not constitute financial advice from CNBC Awaaz or CNBC TV18 Hindi. Investors should always consult their personal financial advisors or certified experts before making any investment decisions.

📌 Final Takeaway

While the broader trend in FD rates may show a downward shift due to RBI policy changes, Small Finance Banks are currently a bright spot for conservative investors seeking higher yields without taking on stock market risk. With interest rates still hovering around 8% or more, now might be a smart time to lock in your FD before rates dip further.

So, whether you're a retiree looking for safe income or a cautious investor diversifying your portfolio, these high-yield FDs could be the right fit—just make sure you read the fine print and match it with your financial goals.