YES Bank vs Axis Bank vs IDFC First Bank vs DCB Banks vs RBL Bank

For a very long time, people preferred term deposit banking systems to other investment tools on the market. Although the trend of stock investments and mutual funds has increased over the past few years, FDs are still the go-to option for risk-averse investors in the market. Unlike stocks and mutual funds where returns depend on market fluctuations, FDs offer a guaranteed stable rate of return. The stability factor has made FDs a preferred choice for people to keep their hard-earned money safe while expecting some return in the process.

However, it should also be considered that with the recent decline in interest rates, overexposure to FDs may not be a wise choice. So, before committing to a long-term FD, you should always explore the pros and cons while evaluating the yield offered by different banks. If you are looking for long-term FD investments (more than 5 years tenure), here is a list of the major banks offering the highest interest rates for deposits of up to Rs 1 crore.

YES Bank

Yes Bank offers the highest rate on deposits up to Rs 1 crore for at least 5 years and investors get an annual return of 6.25%. With a rate of return of 4.75 to 5% on deposits of 6 months to 1 year, the bank also offers one of the highest interest rates for minimum terms.

First IDFC Bank

With an interest offer of 6.25% on FD investments for over 5 years, IDFC First Bank is number two on the list.

DCB Banks

For all FD investments with a minimum duration of 3 to 5 years, DCB banks offer an interest rate of 5.95%. However, there are no other benefits for senior citizens like other lenders.

Axis Bank

The interest rate offered by Axis Bank on investments of less than Rs 2 crore for 5 to 10 years tenure is 5.75%. However, the offer rises to 6.5% for senior customers.

RBL Bank

RBL Bank offers an interest rate of 5.75% on all investments with a lock-up period of at least five years. There is a provision for an additional interest rate of 0.5% for senior customers opting for FDs.

To make the right investment choice, compare rates according to your needs while taking into account risk factors (if any).

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Leslie M. Gill