Top 5 banks offering up to 7.19% interest rate on FDs below Rs 2 crore: Bank FD interest rate

As a result of the RBI raising the repo rate by 225 basis points to 6.25 percent over the past eight months, banks saw significant increases in their lending and deposit rates. Section 80C tax deductions of up to Rs 1.5 lakh are available for bank fixed deposits that receive tax benefits.

However, these FDs are locked in for five years. Smaller private banks and finance banks dominate the FD interest rate charts for tax-saving deposits.

On 3-year fixed deposits, many banks are offering extremely favorable interest rates. In point of fact, accounts with terms of one or two years or less typically yield significantly higher interest rates than accounts with terms of three years or less.

Bank Bazaar lists the best three-year fixed deposits. The following is a list of the top banks for FD interest rates below Rs 2 crore:

1. Fincare Small Finance Bank :
   For a term of three years, Fincare offers favorable interest rates. They offer 7.19% per annum to the general public. And 7.71 percent for seniors. In addition to an early withdrawal option, the bank provides a selection of interest payout options that can be changed.
2. KTDFC:
   Customers can take advantage of Money Multiplier Schemes and Periodic Interest Payment Schemes at KTDFC, which is owned by the Kerala government. A profit rate of 7.00% per year is offered on term deposits opened for a period of three years. Seniors have access to a yearly interest rate of 7.25 percent. TDS applies to all FD plans.
3. Shriram City:
   For deposits totaling three years, the annual interest rate is 7.86%.
4. LVB:
   The bank offers the general public an annual interest rate of 6.50 percent for opening a term deposit with a three-year investment period. The annual interest rate offered to senior citizens is 7.00%. A penalty fee of one percent applies in the event of an early withdrawal.
5. Equitas Small Finance Bank :
   The bank is offering a high annual interest rate of 7.25 percent for a term of three years. An annual interest rate of 7.45 percent is offered to seniors. There is a facility for early withdrawal.

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