Unsure whether you want to save your money or grow it by investing? What if you could do both simultaneously? A Fixed Deposit (FD) lets you deposit your money in your desired financial institution while earning returns as well.

Let`s take a closer look at how it works, the top 4 private banks that are offering the highest fixed deposit returns, and the applicable interest rates on them.

What is a Fixed Deposit?

Fixed Deposit (FD) is one of the risk-free and sought-after forms of investment by many investors. It is an instrument provided by financial institutions such as Non-banking Financial Companies (NBFC) and banks to help you save money. The returns you receive by investing in an FD are more than the rate of interest offered on savings deposits.

With fixed deposits, you can deposit a sizable amount at a predetermined interest rate for a fixed duration of time starting from 7 days to 10 years, as per your needs. You have the freedom to choose and to get the returns of your deposit monthly or quarterly as per your choice.  You can also calculate this amount. Also, not only this but you are completely entitled to reinvest your Fixed Deposit interest.

Top 4 Private Banks Offering the Highest Fixed Deposit Returns:

The top 4 private banks offering highest fixed deposit returns are as follows:

Yes Bank 

Yes Bank provides one of the highest interest rates on FD starting at 3.23% per annum for fixed deposits of 7 to 14 days. The returns of the fixed deposit go up to 6% per annum for 18 months to 3 years of duration. The returns rate for senior citizens is 6.50% per annum. There is an additional 0.14% and bonus for annual yields. But all these return rates are only applicable for an FD of less than Rs. 2 Crores.

RBL Bank

RBL Bank provides one of the best FD interest rates in banks as they recently updated their FD interest rates which are 6% per annum for FD duration of 2 to 3 years. But the FD should be less than Rs. 3 Crores and there is an additional 0.5% interest rate for senior citizens.

Bandhan Bank

Bandhan Bank provides one of the highest interest rates on FD which starts at 3% for a duration of 7 to 14 days. It goes up to 5.5% per annum for deposits duration of 1 to 3 years. Furthermore, the senior citizens get an additional 0.75%  interest.

IndusInd Bank

One of the best FD interest rates in banks is offered by IndusInd Bank of 6% per annum for deposit duration of 1 and 3 years. The senior citizens are entitled to get an additional 0.5% interest returns over the normal returns.

Wrapping It Up:

Apart from Private banks, Post Office FD Interest Rates are also pretty attractive to have a look at. The FD interest rates have come down in recent years, and investing in them for the long term might be disappointing. This is why many investors prefer to invest in short-term fixed deposits, which could help them get a good rate of return.