Investors often choose to invest in fixed deposits (FDs) because they are considered safe, stable, and offer guaranteed returns. However, it’s important to compare interest rates from different banks before investing large sums.
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Fixed Deposit Interest: Investors often prefer to invest in fixed deposits (FDs) because they are considered safe, stable, and offer guaranteed returns. However, it’s important to compare interest rates across different banks before investing large sums. FD rates generally don’t vary significantly, but even a small difference of 50 basis points (0.50%) can yield significant additional earnings over the long term. For example, an additional rate of just 0.50% on an FD of ₹10 lakh over a three-year period can earn you ₹15,000 in additional interest. If the amount is ₹20 lakh, this savings can reach ₹30,000. In this context, here’s a comparison of fixed deposit interest rates offered by major commercial banks in India.
1. HDFC Bank
HDFC Bank offers 6.45% interest to general customers and 6.95% interest to senior citizens on three-year FDs. The highest interest rate offered by the bank is on 18-21 month FDs.
2. ICICI Bank
ICICI Bank offers 6.6% interest to general customers and 7.2% interest to senior citizens on three-year FDs.
3. Kotak Mahindra Bank
Kotak Bank offers 6.4% interest to general customers and 6.9% interest to senior citizens on three-year FDs. The bank’s highest interest rates (6.7% and 7.2%) are on FDs with tenures ranging from 391 days to less than two years.
4. Federal Bank
Federal Bank offers 6.7% interest to general customers and 7.2% interest to senior citizens on three-year FDs. This is also the highest interest rate offered by the bank.
5. State Bank of India (SBI)
State Bank of India offers 6.3% interest to general customers and 6.8% to senior citizens on FDs with a tenure of three years. The bank’s highest rates (6.45% and 6.95%) are offered on FDs with tenures of two to three years.
6. Canara Bank
Canara Bank offers 6.25% interest to general customers and 6.75% interest to senior citizens on FDs with a tenure of three years. The bank’s highest interest rates (6.5% and 7%) are applicable on FDs with tenures of 444 days.
7. Union Bank of India
Union Bank offers 6.6% interest to general customers and 7.1% to senior citizens on three-year FDs.
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