Best Fixed Deposit Schemes of 2021 for the Indian Citizens

Most of us prefer low-risk investment instruments, and fixed deposits are one such scheme. From deposits of banks to non-banking financial companies deposits to time deposits of post offices, the investors today have a wide range of FD options to select from. Many factors make a fixed deposit scheme worthy to invest such as its rate of interest, its flexible tenure, and its safe nature for investing our hard-earned money in it. An important thing about fixed deposits of banks is that these deposits are safeguarded by the Deposit Insurance and Credit Guarantee Corporation.

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However, due to the pandemic, the FD interest rates for this year have fallen. In such a situation, the best FD rates offered by some of the small financial banks and commercial banks are mentioned below:

Best FD Rates in 2021

Commercial Banks FD Rates

The fixed deposit rates for commercial banks are:

Best FD Offers by Commercial Banks in India

Name of the Bank

Interest Rate

Tenure

Regular People

Senior Citizens

DCB Bank

6.95%

7.45%

36 months

IDFC First Bank

6.00%

6.50%

500 days

IndusInd Bank

7.00%

7.50%

One year to one year two days

RBL Bank

6.95%

7.45%

36 months to 36 months one day

Yes Bank

7.00%

7.75%

Two years to less than three years

Note: The interest rates are updated on 18th November 2020.

Small Finance Bank:

Best FD Rates Offered by Small Finance Banks in India

Name of the Bank

Interest Rate

Tenure

Regular People

Senior Citizens

Fincare Small Finance Bank

6.50%

7.00%

36 months one day to 42 months

Jana Small Finance Bank

7.50%

8.00%

Less than two years to three years

North East Small Finance Bank

7.50%

8.00%

730 days to less than 1095 days

Suryoday Small Finance Bank

7.50%

8.00%

Five years

Utkarsh Small Finance Bank

7.00%

7.50%

700 days

Note: The rates of interest are updated on 18th November 2020.

FD interest have fallen consistently over the last 5 years.
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Benefits and Features of FD Schemes

The above-mentioned FD interest rates are for different banks. Now we are going to provide a small description of these schemes.

DCB Bank Fixed Deposits:

  • The tenure ranges from seven days to 10 years.
  • The options for interest payment are flexible.
  • The minimum amount that you can deposit in this scheme Rs. 10,000.
  • Feature to take a loan against FD for up to 80% of the FD amount.
  • The scheme offers quarterly, half-yearly, yearly, and quarterly interest pay-out for non-cumulative option.

IDFC First Bank Fixed Deposits:

  • The tenure of this FD ranges from seven days to 10 years.
  • For senior citizens, this bank offers an additional 0.50% interest rate.
  • Simple interest for tenure that is up to 180 days.
  • The senior citizens are not charged any penalty in case of premature withdrawal or closure.
  • For a tenure of more than 180 days, the interest is compounded quarterly.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

IndusInd Bank Fixed Deposits:

  • The investment tenure ranges from seven days to five years.
  • Partial withdrawals are allowed.
  • The senior citizens get 0.50% extra FD rates.
  • One can receive the interest on a monthly, quarterly, half-yearly, or yearly basis upon maturity.
  • The facility of nomination and option of auto-renewal is offered.
  • The interest is paid by crediting the amount to the linked current or savings account.

RBL Bank Fixed Deposit:

  • The tenure of the fixed deposit ranges from seven days to 20 years.
  • The facility of nomination is offered.
  • Options of partial withdrawal and total premature withdrawal are provided.
  • The FD account is easily accessible through the internet and mobile banking.

Yes Bank Fixed Deposits:

  • The tenure of this policy ranges from seven days to ten years.
  • The facility of auto-renewal is offered.
  • The facility of overdraft is provided.
  • A sweep-in facility is offered.
  • There is no penalty for premature withdrawal of the fixed deposit.

Fincare Small Finance Bank Fixed Deposits:

  • The tenure of fixed deposits ranges from seven days to seven years.
  • The pay-out of interest is flexible, which is non-cumulative and cumulative (quarterly/ monthly).
  • The fixed deposit rate for senior citizens is 0.50% extra.
  • For deposits up to Rs.2 Crore, the FD rates can go up to 7.50%.
  • Pre-closure and flexible renewals are offered.

Jana Small Finance Bank Fixed Deposits:

  • The tenure of fixed deposits ranges from seven days to 10 years.
  • The initial deposit amount to start the FD is Rs. 1,000.
  • The Jana Small Finance Bank provides the option to choose non-cumulative and cumulative options (quarterly, yearly, half-yearly, and monthly basis).
  • Easy application through a mobile banking app.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

North East Small Finance Bank Fixed Deposits:

  • The tenure of these FDs ranges from seven days to ten years.
  • The facility of partial withdrawal is offered.
  • The minimum deposited amount is Rs. 1,000.
  • The option of reinvestment is provided.
  • The facility of auto-renewal is offered.

Suryodaya Small Finance Bank Fixed Deposits:

  • The tenure of the FDs of this bank ranges from seven days to 10 years.
  • Cumulative and non-cumulative options are provided.
  • Affordable FD amount that starts from Rs. 1,000.
  • Extra 0.25% rate of interest for fixed deposits for senior citizens is offered.
  • A simple rate of interest is paid for FDs maturing in less than six months.
  • If the FD is withdrawn in less than seven days from the opening date, then no interest is paid.
  • The interest is compounded quarterly for the deposits that are maturing in six months and more.

Utkarsh Small Finance Bank Fixed Deposits:

  • The tenure of the FDs of Utkarsh Small Finance Bank ranges from seven days to 10 years.
  • Minimum investment of Rs. 1,000.
  • The depositor can appoint his/her nominee online.
  • Hindu Undivided Families, Resident Indians, Partnership Firms, Sole Proprietorship, Trusts Accounts, and Limited Companies are eligible to open a Fixed Deposit account with this bank.
You may like to Read: HDFC Bank FD Rates

The Final Words!

These are some of the best fixed deposit schemes for the year 2021. You can choose a scheme as per your convenience and requirement.

Written By: PolicyBazaar - Updated: 09 August 2021

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