The Reserve Bank of India's (RBI) subsidiary, deposit insurance and credit guarantee corporation (DICGC), guarantees returns on bank fixed deposit (FD) interest rates on investments up to Rs. 5 lakhs.

Bank FD (Fixed Deposit) interest rates are considered safe investment options. This is especially true if you want to stay away from the high-risk, high-return markets of stocks and cryptocurrencies. Senior citizen FD interest rates, are much more advantageous if you are over 60 years old.

Instead of risking all your hard-earned money in the speculative market, you can earn risk-free 6.5 percent FD rates or more. In fact, smaller private banks in India also offer tax-saving FDs, allowing you to claim tax deductions under the Income Tax Act’s Section 80C. To learn more about FDs, please go through these FAQs.

Top 3 Banks Offering 6.5 percent Bank FD Interest Rates 2022

Let’s explore the Indian banks that are offering the best interest rates on fixed deposits.

1. IndusInd Bank

IndusInd Bank Limited, headquartered in Mumbai, offers a wide array of FD schemes offering the best interest rates. The maximum rate given to:

• People (below the age of 60 years) saving less than Rs. 2 crores for 2 years to under 61 months is 6.5 percent.
• Senior citizens saving less than Rs. 2 crores from 1 year to 2 years is 6.5 percent. 
• Senior citizens saving less than Rs. 2 crores from 2 years to under 61 months is 7 percent. 
• People (below the age of 60 years) purchasing an Indus Tax Saver Scheme (5 years) is 6.5 percent.
• Senior citizens purchasing Indus Tax Saver Scheme (5 years) is 7 percent. 

2. RBL Bank (formerly Ratnakar Bank)

RBL Bank, established in 1943, is a private Indian bank. It offers its customers 6.5 percent and 7 percent bank FD interest rates. Let’s check out the FD interest rates for different categories offered by this Mumbai-based bank:

• People (below the age of 60 years) saving less than Rs. 2 crores for 24 months to less than 36 months is 6.5 percent.
• Senior citizens saving less than Rs. 2 crores for:

1. 12 months to less than 24 months is 6.75 percent
2. 24 months to less than 36 months is 7 percent
3. 36 months to less than 60 months is 6.8 percent
4. 60 months to 60 months and 1 day is 6.8 percent

• Senior citizens purchasing Tax Savings Fixed Deposit (60 months) is 6.8 percent

3. DCB Bank

DCB Bank is a privately held scheduled commercial bank. Across India, it has 400 bank branches and around 9,50,000 customers. DCB Bank was founded in the 1930s and is headquartered in Mumbai. The FD rates offered by this bank are as follows:

• People (below the age of 60 years) saving less than Rs. 2 crores for 18 months to less than 36 months is 6.5 percent.
• People (below the age of 60 years) saving less than Rs. 2 crores for 36--120 months is 6.5 percent.
• Senior citizens saving less than Rs. 2 crores for:

1. 12 months is 6.5 percent
2. 15 months to less than 18 months is 6.6 percent
3. 18 months to less than 36 months is 7 percent
4. 36--120-months is 7.1 percent

Besides these three private sector banks, there are many other small banks that offer 6.5 percent bank FD interest rates or higher. Some of them are Bandhan Bank, Yes Bank, Deutsche Bank, IDFC First Bank, Suryoday Small Finance Bank, Ujjivan Small Finance Bank, Karur Vysya Bank, and others.

To know more about the best rates at various leading banks in India and how to invest in them, click here.

Final Words

The higher fixed deposit interest rates are usually offered by the banks to allure new customers into opening new accounts with them. It is important to know that the Reserve Bank of India's (RBI) subsidiary, deposit insurance and credit guarantee corporation (DICGC), guarantees returns on bank fixed deposit (FD) on investments (principal + interests) up to Rs. 5 lakhs.