There are still some banks which continue to offer a high interest rate of up to 8.05% to general citizens investing in FDs for short term tenures like one year. This high interest rate is for FDs worth less than Rs 3 crore.
Read below to know more about which banks are offering such a high interest rate on one year tenure FDs worth less than Rs 3 crore.
FD interest rate up to 8.05%
Bandhan Bank is offering a 8.05% interest rate on its FDs maturing in one year.
FD interest rate up to 7.75%
IndusInd Bank is offering a 7.75% interest rate on its FDs maturing in one year.
YES Bank is offering a 7.75% interest rate on its FDs maturing in one year.
FD interest rate up to 7.5%
RBL Bank is offering a 7.5% interest rate on its FDs maturing in one year.
| Bank name | Interest rate |
| Bandhan Bank | 8.05% |
| IndusInd Bank | 7.75% |
| YES Bank | 7.75% |
| RBL Bank | 7.5% |
| Karnataka Bank | 7.25% |
| DCB Bank | 7.1% |
Source: paisabazaar.com as of February 26, 2025
FD interest rate up to 7.25%
Karnataka Bank is offering a 7.25% interest rate on its FDs maturing in one year.
FD interest rate up to 7.1%
DCB Bank is offering a 7.1% interest rate on its FDs maturing in one year.
What is an overdraft facility against FD?
According to ICICI Bank website as of March 1, 2025, overdraft on FD is a facility where you can get a credit limit based on the FD amount. For example if the FD is worth Rs 5 lakh and the bank is offering up to 70% overdraft facility then you can get up to Rs 3.5 lakh credit limit. “The overdraft facility gets renewed when the fixed deposit is renewed. So you don’t have to go through the documentation process again to avail of an overdraft facility,” said ICICI Bank.
Things to know before using an overdraft facility against FD
According to ICICI Bank website here are some important things to know about overdraft facility against FD:
- Check Interest Rates: When considering an OD facility against an FD, it is vital to check the interest rates charged. These are charged against your FD return rate, so make sure you know the same before applying for an OD.
- Check for Fees: Make sure to check for any fees associated with the OD facility, such as processing or renewal fees. This will help you determine the facility’s total cost and avoid surprises. What’s more, ICICI Bank won’t charge any processing/renewal fee, so you don’t need to worry.
- Consider Loan Amount: Evaluate the loan amount needed and whether the OD facility can provide the required amount. If the amount needed exceeds the OD limit, it may be a good idea to consider other options..
- Manageable Repayment Terms: Ensure that the repayment terms of the OD facility are manageable and you can repay them easily. This way, you can avoid penalties on your FD returns. Having a repayment plan beforehand is always a good idea.
