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Best interest rate on Fixed Deposit offered by foreign banks

Foreign bank branches in India recorded 13.8 per cent growth in their income which was largely driven by interest income 2019-2020.

ET Now Digital

Updated Mar 27, 2022, 07:58 IST

Fixed Deposit

Fixed deposit (FD) is considered a good investment option in the long term. FD is a financial instrument provided by banks or NBFCs that offers investors a higher interest rate than regular savings account until maturity.

With effect from October 22, 1997, RBI has given the freedom to commercial banks to fix their interest rates on domestic term deposits of various maturities with the prior approval of their respective Board of Directors/Asset Liability Management Committee (ALCO).

According to the Reserve Bank of India, “Foreign bank branches in India recorded 13.8 per cent growth in their income which was largely driven by interest income 2019-2020.”

As of now, India has 46 foreign banks, according to RBI data. Here are fixed deposit rates of foreign banks in India for deposits below Rs 2 crore.

FD interest rates of popular foreign banks in India-

Standard Chartered Bank

Interest rate- 5.25 to 5.30% for 1-2 years

Interest rate- 5.35 to 5.60% for the term of 3-5 years

Citi Bank

Interest rate- 2.75 to 3% for the tenure of 1-2 years

Interest rate- 3.5% for above 3 years

HSBC BANK

Interest rate - 3.10-3.5% for 1-2 years

Interest rate- 4% for the term of 3-5 years

DEUTSCHE BANK

Interest rate- 3.85 to 5% for the tenure of 1-2 years

Interest rate- 5.50 to 6% for 3-5 years

Interest rate- 6.25% (up to 5 years)

DBS BANK

Interest rate- 5 to 5.25% for the tenure of 1-2 years

Interest rate- 5.65% for the term of 3-5 years

Interest rate- 5.75% for 5-10 years

BARCLAYS BANK

Interest rate- 3.58 to 3.85% for the tenure of 1-2 years

Interest rate- 4.55 to 4.98% for the tenure of 3-5 years

Interest rate- 4.98-5.36% (max tenure is 7 years)

Thing to keep in mind

After maturity, if you do not claim the amount, you will get less interest in it. This interest will be equal to the interest received on the savings account.

Currently, banks usually give more than 5% interest on FDs with a longer tenure of 5 to 10 years. At the same time, the interest rates on savings accounts are around 3 per cent to 4 per cent.

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