FD rates on the rise: Here are some of the best FD rates you can get!

Reserve Bank of India has hiked the repo rate six times in a row by as much as 250 basis points (2.5%). This ofcourse, has led to loan EMIs skyrocketing. But, there is a silver lining. RBI's repo rate hike has also led to a jump in fixed deposit rates by banks across several tenures.

However, some banks are offering a significantly higher FD rate than others. Small finance banks, smaller private banks as well as foreign banks are offering a higher rate of interest on FDs than PSU banks and the larger private banks.

As per data compiled by Bankbazaar.com, Unity Small Finance Bank offers one of the highest interest rates of 9% on a 1001 day tenure. 

Small finance banks such as AU, Ujjivan, Suryoday, all offer between 8% and 8.5% interest. 

Among foreign banks, one of the best rates is offered by Deutsche Bank. 7.75% interest on 3-year tenure FDs.

As per BankBazaar, best 5 year FD rates are offered by IDFC First and Axis Bank at 7% and 7.5% for senior citizens. 

The new rates should not be confused with the old rates. Only new FDs are subject to higher interest rates.

While many may think about terminating the old FD to take advantage of the most recent and significantly higher interest rate, it is important to remember that the banks charge a penalty for premature withdrawal. So that must be taken into account before making any such decision.