Banks with the Highest Fixed Deposit Interest rate in Bangladesh

In Bangladesh, many people seek safe ways to grow their savings, and one of the most popular methods is by opening a Fixed Deposit Receipt (FDR). FDR accounts allow you to deposit a lump sum amount with a bank for a fixed period and earn interest on it. The interest rates can vary from one bank to another, so it is crucial to compare rates before deciding where to open your FDR.

In this article, we will explore some of the banks in Bangladesh that offer the best interest rates for FDRs, along with an overview of how FDRs work and how to choose the best option for your financial goals.

What is a Fixed Deposit Receipt (FDR)?

A Fixed Deposit Receipt (FDR) is a financial product offered by banks where you deposit a fixed amount of money for a predetermined period. In return, the bank pays you interest, which is typically higher than a regular savings account. The main advantages of an FDR are its safety and the ability to earn a predictable return on investment.

• Interest Rates: These rates are fixed at the time of deposit and stay the same for the entire duration of the term.
• Tenure: FDRs can have flexible tenures ranging from 3 months to 5 years or more. The longer the duration, the higher the interest rate is usually.
• Interest Payout: Interest can be paid periodically (monthly, quarterly, or annually) or at maturity. You can also choose to reinvest the interest, allowing your investment to grow over time.

How Do Interest Rates for FDR Work?

Interest rates for FDRs in Bangladesh are influenced by various factors including the bank’s policy, the duration of the deposit, and the amount deposited.

• Deposit Amount: Larger deposits often qualify for higher interest rates.
• Duration: Longer tenures typically offer higher rates. For example, a 3-month FDR will usually offer a lower rate than a 5-year FDR.
• Bank Policy: Different banks set their own interest rates, which are influenced by their financial position and competition in the market.
• Account Type: Some banks may offer special rates for senior citizens or certain types of accounts.

Best Banks Offering High Interest Rates for FDR in Bangladesh

Here’s an updated list of banks offering competitive interest rates on Fixed Deposit Receipts in Bangladesh.

1. Dutch-Bangla Bank Limited (DBBL)

Dutch-Bangla Bank is one of the leading private commercial banks in Bangladesh. Known for its excellent customer service, DBBL provides attractive interest rates on FDR accounts.

• Interest Rate: DBBL offers FDR interest rates ranging from 5.25% to 7.25%, depending on the deposit tenure. Longer tenures usually result in higher rates.
• Special Features: DBBL provides an online FDR facility, which allows customers to open and manage their FDR accounts digitally.

2. BRAC Bank Limited

BRAC Bank is known for its reliable financial services and competitive interest rates on FDR accounts. The bank offers a range of fixed deposit options catering to different customer needs.

• Interest Rate: BRAC Bank offers interest rates ranging from 5.5% to 7.5%, with better rates for longer tenures.
• Special Features: The bank offers both monthly and annual interest payout options and an easy account opening process for customers.

3. Bank Asia Limited

Bank Asia is another private bank in Bangladesh offering attractive interest rates on FDRs. Bank Asia aims to cater to both individual and corporate clients with its range of deposit products.

• Interest Rate: Interest rates at Bank Asia range from 5.25% to 7.5%, depending on the duration of the FDR.
• Special Features: Bank Asia has a user-friendly mobile app for managing FDR accounts, which makes it easy to track and renew deposits.

4. City Bank Limited

City Bank is one of the well-established commercial banks in Bangladesh and offers competitive rates on its FDR products.

• Interest Rate: City Bank offers rates ranging from 5.5% to 7.5% for FDR accounts.
• Special Features: City Bank allows customers to select the frequency of interest payments and offers attractive terms for both personal and corporate accounts.

5. Mercantile Bank Limited

Mercantile Bank is another private sector bank that offers competitive interest rates for FDR accounts. It provides a flexible range of deposit options to suit different financial goals.

• Interest Rate: The interest rate ranges from 5.25% to 7.0%, depending on the tenure of the deposit.
• Special Features: Mercantile Bank allows for the automatic renewal of FDRs and offers a range of tenure options.

6. Islami Bank Bangladesh Limited (IBBL)

Islami Bank Bangladesh Limited is one of the oldest private banks in Bangladesh. It offers both conventional and Shariah-compliant FDRs, allowing customers to choose a deposit type that aligns with their values.

• Interest Rate: IBBL offers interest rates ranging from 5.5% to 7.0% for FDR accounts.
• Special Features: IBBL provides an option for reinvestment of interest and has both conventional and Islamic banking options.

7. Standard Chartered Bank

Standard Chartered Bank, a multinational bank with a strong presence in Bangladesh, offers competitive rates on FDRs.

• Interest Rate: Standard Chartered offers interest rates ranging from 5.5% to 7.0% on FDR deposits.
• Special Features: The bank provides flexible terms for interest payout and automatic renewal of FDRs.

8. Southeast Bank Limited

Southeast Bank is a privately owned commercial bank that offers attractive interest rates on fixed deposit accounts.

• Interest Rate: Interest rates at Southeast Bank range from 5.5% to 7.25%, depending on the tenure and deposit amount.
• Special Features: Southeast Bank provides a variety of interest payout options, including monthly and quarterly payouts.

9. Sonali Bank Limited

Sonali Bank is one of the largest state-owned commercial banks in Bangladesh. It is known for its stability and trustworthiness, making it a popular choice for many depositors.

• Interest Rate: Sonali Bank offers FDR interest rates ranging from 5.0% to 6.75% for different deposit tenures.
• Special Features: Being a state-owned bank, Sonali Bank is considered a very safe option for investment. It offers a range of term deposit products with varying durations.

10. Post Office

The Bangladesh Post Office offers a government-backed savings scheme that provides a stable and low-risk investment option for depositors.

• Interest Rate: The Post Office offers interest rates of 5.0% to 6.5% on its fixed deposit schemes.
• Special Features: The Post Office is trusted for its security and stability. It offers simple procedures to open and manage FDR accounts.

11. United Commercial Bank (UCB)

United Commercial Bank (UCB) is a private sector bank in Bangladesh that offers competitive interest rates on its FDR products. UCB is known for its customer-centric services and transparent policies.

• Interest Rate: UCB offers interest rates ranging from 5.5% to 7.5%, depending on the term of the FDR.
• Special Features: UCB offers flexible tenure options, as well as monthly, quarterly, and yearly interest payouts.

12. Agrani Bank Limited

Agrani Bank is one of the oldest and largest state-owned commercial banks in Bangladesh. It offers a wide range of deposit products, including FDRs.

• Interest Rate: Agrani Bank offers FDR interest rates ranging from 5.0% to 6.75%, with higher rates available for longer tenures.
• Special Features: Agrani Bank provides convenient FDR options with different interest payout choices. As a state-owned entity, it is highly reliable for safe investments.

Factors to Consider When Choosing the Best Bank for FDR in Bangladesh

While choosing a bank with the best interest rate is important, there are several other factors that should influence your decision when selecting a bank for your FDR:

1. Interest Rate: Compare the interest rates offered by different banks and choose the one that provides the best returns.
2. Deposit Amount: Some banks offer higher rates for larger deposits. Be sure to check the minimum and maximum deposit limits.
3. Tenure Flexibility: Choose a bank that offers a variety of tenure options to suit your financial goals, whether short-term or long-term.
4. Interest Payout Options: Some banks offer monthly, quarterly, or yearly interest payouts, while others allow reinvestment of interest. Select the option that aligns with your needs.
5. Bank Stability: Consider the financial strength and stability of the bank. State-owned banks like Sonali Bank, Agrani Bank, and the Post Office are considered very safe.
6. Customer Service: Ensure that the bank provides excellent customer service and easy access to manage your FDR accounts.

Conclusion

Opening

an FDR is a great way to grow your savings securely in Bangladesh. By choosing the right bank with a high interest rate, you can maximize the returns on your fixed deposit. Whether you prefer the stability of state-owned banks like Sonali Bank, Agrani Bank, and the Post Office, or the competitive rates offered by private banks such as DBBL, BRAC Bank, and UCB, there are many options available.

Make sure to evaluate the interest rates, terms, and customer service offered by different banks to ensure that you make the best choice for your financial goals.