These banks are giving the highest interest
Talking about the interest rates available on FDs, IndusInd Bank, DCB Bank, RBL Bank, DCB Bank, IDFC First Bank, RBL Bank and HDFC Bank are offering the highest interest rates on FDs with a tenure of 5 years. In all these banks, customers are getting interest ranging from 6.10 percent to 6.75 percent on FDs with a tenure of 5 years. IndusInd Bank 5 Year FD 6.75 percent, DCB Bank 5 Year FD 6.60 percent, RBL Bank 5 Year FD 6.55 percent, IDFC First Bank 5 Year FD 6.50 percent and HDFC Bank 5 Year FD 6.10 percent Interest rates are offered.
There are two types of fixed deposits
Before investing in FDs, one must know about the types of FDs. It is of two types, fixed rate FD and floating rate FD. There is no change in the interest rates while investing in a fixed rate FD. On the other hand, in floating rate FD, the interest rates keep on changing. Floating rate FDs came into the limelight when RBI increased the repo rate.
Which FD is right to invest
If experts are to be believed, the RBI may increase the repo rates further in view of inflation. After the hike in repo rates, banks can increase the interest rate. In this context, floating rate FDs can prove to be more profitable. It may also happen that if banks start cutting it, then customers may suffer. The benefit of this scheme can be availed only as long as the banks are increasing the rates. If you cut rates, you will start making losses. In a fixed rate FD, the interest rate remains the same throughout the tenure.