Interest rates on FDs: List of private, public sector banks offering highest rates on two-year deposits

Two-year fixed deposits (FDs) are a popular investment choice for those seeking assured returns and liquidity, making them ideal for short-term financial objectives.

Here is a list of leading private and PSU banks offering the highest interest rates on FDs. The list takes into account the best rates offered by these banks on two-year FDs (up to Rs 1 crore) for resident, retail, and non-senior citizens. Let’s examine how an investment of Rs 1 lakh grows over this period. BankBazaar compiled the data as of August 22.

IndusInd Bank stands out among private banks, offering a 7 percent interest rate on two-year fixed deposits, which would grow a Rs 1 lakh investment to Rs 1,14,000 at the time of maturity.

Axis Bank, HDFC Bank and Kotak Mahindra Bank offer a 6.6 percent rate on two-year fixed deposits, growing a Rs 1 lakh investment to Rs 1,13,200.

ICICI Bank offers an interest rate of 6.40percent on two-year FD. A deposit of Rs 1 lakh with the private lender will grow to Rs 1,12,800 on the maturity date.

Bank of Baroda and Punjab National Bank offer 6.6 percent rate on two-year fixed deposits, with a Rs 1 lakh investment maturing to Rs 1,13,200, the highest among public sector banks.

Canara Bank and Union Bank of India offer a 6.5 percent interest rate on two-year fixed deposits, with a Rs 1 lakh investment maturing to Rs 1,13,000.

State Bank of India offers an interest rate of 6.45 percent on FDs with a tenor of two year. In two years, a Rs 1 lakh FD would grow to Rs 1,12,900.