Check before investment, these 6 banks are offering best interest rates

Best Interest Rate: It is a common practice for depositors to evaluate the interest rates provided by various banks prior to establishing a fixed deposit (FD), enabling them to optimize their interest earnings. Typically, banks present higher interest rates for long-term deposits while offering lower rates for short-term ones.

A seemingly minor variation of 50 basis points in interest income can significantly impact returns over time. For instance, an increase of 1 percent on an FD of Rs 5 lakh results in an additional return of Rs 15,000 over three years and Rs 25,000 over five years. Similarly, for a deposit amount of Rs 10 lakh, the return can escalate to Rs 50,000 within five years. Therefore, selecting a bank that provides the most favorable interest rate is crucial.

HDFC Bank

HDFC Bank offers an interest rate of 7.25 percent for general depositors and 7.77 percent for senior citizens on FDs with tenures ranging from 18 to 21 months.

ICICI Bank

This private institution provides an interest rate of 7.25 percent for general depositors and 7.85 percent for senior citizens on FDs with tenures of 15 to 18 months.

Kotak Mahindra Bank

This bank offers a 7.4 percent interest rate for general depositors and 7.9 percent for senior citizens on FDs with a duration of 390 to 391 days.

Federal Bank

It provides an interest rate of 7.5 percent for general depositors and 8 percent for senior citizens on FDs with tenures of up to 444 days.

Bank of Baroda

This government bank offers an interest rate of 7.15 percent for general depositors and 7.65 percent for senior citizens on FDs with tenures of 2 to 3 years.

Union Bank of India

This government institution grants an interest rate of 7.3 percent for general depositors and 7.8 percent for senior citizens on FDs with a tenure of 456 days.