Fixed Deposit Interest: Many investors lean towards fixed deposits (FDs) since they are viewed as safe, reliable, and provide guaranteed returns. However, it’s crucial to check the interest rates from various banks before putting in large amounts. Generally, FD rates don’t fluctuate much, but even a slight difference of 50 basis points (0.50%) can lead to considerable extra earnings over time.
For instance, an extra rate of just 0.50% on an FD of Rs 10 lakh over three years can net you Rs 15,000 more in interest. If the amount is Rs 20 lakh, that savings can go up to Rs 30,000. So, here’s a look at the fixed deposit interest rates from major commercial banks in India.
1. HDFC Bank
HDFC Bank provides 6.45% interest for regular customers and 6.95% for senior citizens on a three-year term. The best interest rates are available for terms of 18 to 21 months.
2. ICICI Bank
ICICI Bank gives 6.6% interest to regular citizens and 7.2% to senior citizens on three-year FDs.
3. Kotak Mahindra Bank
Kotak Bank offers 6.4% interest for regular customers and 6.9% for senior citizens on three-year FDs. The bank’s top interest rates (6.7% and 7.2%) are for FDs maturing between 391 days and less than two years.
4. Federal Bank
Federal Bank provides 6.7% interest on three-year FDs for regular customers and 7.2% for senior citizens. This is the highest rate the bank offers.
5. State Bank of India (SBI)
State Bank of India offers 6.3% interest for regular customers and 6.8% for senior citizens on three-year FDs. The bank’s top rates (6.45% and 6.95%) are for FDs with terms of two to three years.
6. Canara Bank
Canara Bank provides 6.25% interest for regular citizens and 6.75% for senior citizens on a three-year term. The bank’s highest interest rates (6.5% and 7%) apply to 444-day terms.
7. Union Bank of India
Union Bank offers 6.6% interest to regular customers and 7.1% to senior citizens on three-year FDs.