Comparing Fixed Deposit Rates: PSU Banks vs Private Banks vs Small Finance Banks
FD at PSU banks vs private banks vs SFBs – How much can ₹5 lakh earn in 5 years? Check best rates here
Mint
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For a ₹5 lakh investment over five years, fixed deposits offer varying returns based on the bank type. Private banks like DCB Bank lead with a 7.25% rate, while PSU banks like Bank of Baroda offer 6.30%. Small finance banks provide the highest rates, with Suryoday Small Finance Bank at 7.90%.
- 01DCB Bank offers the highest FD rate at 7.25% among private banks.
- 02Bank of Baroda leads PSU banks with a 6.30% FD rate.
- 03Suryoday Small Finance Bank offers the best rate at 7.90% among small finance banks.
- 04Investors prefer fixed deposits for their predictability and safety.
- 05Interest rates vary significantly between different types of banks.
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Fixed deposits (FDs) remain a popular investment choice for many Indians due to their predictability. For a ₹5 lakh investment over five years, the interest rates vary significantly across different bank categories. Among private banks, DCB Bank currently offers the highest rate at 7.25%, followed closely by IDFC FIRST Bank at 7.15%. In the public sector, Bank of Baroda leads with a 6.30% rate, while Canara Bank and State Bank of India (SBI) offer 6.25% and 6.05%, respectively. For small finance banks, Suryoday Small Finance Bank provides the highest rate at 7.90%, with Jana Small Finance Bank at 7.77% and Ujjivan Small Finance Bank at 7.20%. These rates highlight the varying returns investors can expect based on their choice of bank.
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Choosing the right bank for fixed deposits can significantly affect the returns on investments, impacting financial planning for homebuyers and savers.
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