SBI, HDFC Bank or ICICI Bank? Know which bank is paying the highest interest

FD Rates- Reserve Bank of India (RBI) has recently decided to cut the key repo rate by 50 basis points. After this, the competition among major Indian banks has intensified regarding fixed deposit (FD) interest rates.HDFCThe bank recently cut interest rates by 25 basis points (bps) on select fixed deposit (FD) tenures, effective June 25.

These revised rates are applicable for deposits of less than Rs 3 crore. This adjustment marks the second reduction in FD rates by the bank this month after a similar adjustment on June 10. In addition, the bank has implemented a 25 bps cut in savings account interest rates, bringing the rate from 2.75% to 2.50%, effective June 24. FD rates up to 3.25% and 7.10% Term deposits are a widely used savings instrument that offers a fixed return over a specified period.

With the most recent changes, HDFC Bank now offers FD rates ranging from 2.75% to 6.60% for regular customers, depending on the period. Senior citizens are entitled to slightly higher returns, earning between 3.25% and 7.10%. For instance, FDs with tenures ranging from 18 months to less than 21 months currently offer 6.60% for general customers and 7.10% for senior citizens.

ICICI Bank

ICICI Bank is currently leading the race, offering better FD interest rates than State Bank of India (SBI) and HDFC Bank, especially in the medium to long-term deposit categories. This adjustment by the RBI has prompted banks to revise their FD rates, aimed at attracting depositors seeking stable returns amid the changing economic environment.

SBI

In the revised interest rates, ICICI Bank has emerged as the leader with attractive interest rates across various tenures. For short term deposits of up to six months, SBI offers the highest rate of 5.80%, slightly ahead of HDFC and ICICI, which both offer up to 5.75%. However, for tenures of 18 months to 2 years, ICICI outdoes its rivals, offering a competitive rate of 6.50%. For longer tenures of 2 to 10 years, ICICI again leads with 6.60%, while HDFC has 6.40% and SBI has 6.30%.

HDFC Bank

Senior citizens get good returns across all three banks, with both ICICI and HDFC offering up to 7.10% for select tenures, while SBI offers a slightly lower rate of 7.05% under its ‘We Care’ plan. This trend of offering higher returns to senior citizens reflects a broader strategy by banks to secure investments from this demographic segment, which generally prefers stable and secure financial options.