Best fixed deposit interest rate offered by foreign banks

fixed deposit (FD) is considered a good investment opportunity over the long term. FD is a financial instrument provided by banks or NBFCs that offers investors a higher interest rate to maturity than a regular savings account.

Effective October 22, 1997, RBI has allowed commercial banks the freedom to set their interest rates on domestic term deposits of different maturities with prior approval of their respective board/Asset Liability Management Committee (ALCO).

According to the Reserve Bank of India, “Foreign bank branches in India saw income growth of 13.8 percent, mainly driven by interest income in 2019-2020.”

According to RBI data, India currently has 46 foreign banks. Here are foreign banks fixed deposit rates in India for deposits under Rs 2 crore.

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FD interest rates Most 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 term of 1-2 years

Interest rate – 3.5% for over 3 years

HSBC BANK

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

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

GERMAN BANK

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

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

Interest rate – 5.75% for 5-10 years

BARCLAY’S BANK

Interest rate – 3.58-3.85% for the term of 1-2 years

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

Interest rate – 4.98-5.36% (maximum term is 7 years)

thing to note

If you do not claim the amount after the due date, you will receive less interest. This interest corresponds to the interest on the savings account.

Currently, banks typically give upwards of 5% interest on FDs with longer maturities of 5 to 10 years. At the same time, interest on savings accounts is around 3 to 4 percent.