4 Banks And NBFCs That Offer The Best Interest Rate Of 7.0% To 8.5% On Fixed Deposits (Fds)

Interest rates are rising and rising with some speed. It is now easy to get 7.5% interest from government banks in India. Let's take a look at some banks and NBFCs that offer 7.5% to 8.25% on Fixed deposits. We have taken 2 banks and 2 NBFCs.

Canara Bank Fixed deposits offer the best interest rate of 7.5%

Canara Bank offers senior citizens an interest rate of upto 7.50% for a deposit of 666 days. The deposit of 666 days offers an interest rate of 7% for general public. This is fantastic given that about a year back, bank fixed deposits were offering an interest rate of just 5.5% at best. If you are considering a tenure of 2 years & above to less than 3 years, than the bank offers an interest rate of 6.25% for general public, while senior citizens are extended an interest rate of 6.75%. We suggest that investors should continue to look at longer term deposits like 3-5 years, given that interest rate could start falling in 2024. For the more short term, the bank offers an interest rate that begins from 3.25%.

PNB Fds offers an interest rate of 7.5% - best for government bank

Like Canara Bank, Punjab National Bank is a government of India owned enterprise. The bank offers an interest rate of 7% on fixed deposits of 600 days. The fixed deposits of Punjab National Bank are safe, given that it is a government of India owned entity. Senior citizens are entitled to an extra interest rate of 0.50%, taking the interest on their deposits to 7.50% for 600 days. We strongly advocate that investors place money in these deposits as they are the best from a government bank. A 601 days to 2 years deposit fetches an interest rate of 6.3% for general public and 6.8% for senior citizens. All of the above rates are for deposits that are under Rs 2 crores.

Bajaj Finance Fixed deposits, get upto 7.75%

The Bajaj Finance fixed deposits offer an interest rate of up to 7.75% for senior citizens for 44-months deposits. For non senior citizens the interest rate on 44-month deposits is 7.50%. We believe that the tenure is perfect, as interest rates could fall lower in the next couple of years. So, a deposit for 44-months makes sense. In fact, we believe that the Reserve Bank of India would hike interest rates once again, which should make fixed deposits more lucrative again in December. Beyond that the RBI is expected to pause on the interest rates front.

Shriram Transport Finance Fixed deposits

The deposits here can fetch an interest rate of as much as 8% for general public and 8.5% for senior citizens. The above rates are cumulative deposits for 6-months. The deposits are rated AA+ by India Ratings and AA+ by ICRA as well. It's important to remember that fixed deposits from NBFCs is not as safe as bank deposits. So, investors need to be cautious. As indicated before, longer term tenures are preferable, and we suggest investors to look for options ranging from 3 to 5 years.