If you are planning to open a fixed deposit (FD) account, it is advisable to first compare the interest rates offered by different banks. Although depositors tend to opt for the bank with which they share a long-term relationship, they can still choose a bank that gives them a higher rate of interest on fixed deposits.
The monetary policy committee of the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6.5 per cent for the tenth time in a row, Governor Shaktikanta Das announced. However, the banking regulator is expected to cut the interest rate in the December meeting, which will have a ripple effect on lending as well as deposit rates.
Therefore, depositors are advised to lock the fixed deposits at the prevailing high rates of interest.
Long tenure deposits
Typically, banks give a higher rate of interest on long- duration fixed deposits. This means the longer the deposit tenure, the higher the rate of interest. On the contrary, the shorter the FD tenure, the lower the rate of interest.
We have compiled a list of interest rates offered by different banks on their three-year fixed deposits. These interest rates are higher than those offered on short-duration deposits, such as one year or six months. Additionally, the interest rates offered to senior citizens are higher by 50-65 basis points.
Here we give a lowdown on the interest rates offered by the top banks in the country including HDFC Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank and Axis Bank.
As we can see in the table above, the three-year fixed deposit interest rate offered by SBI is 6.75 per cent for general citizens and 7.25 per cent for senior citizens. These rates came into force on June 15.
Bank of Baroda offers 6.5 per cent to general citizens and 7.15 per cent to senior citizens. The latest rates came into force on October 3. Kotak Mahindra Bank offers 7 per cent to general citizens and 7.6 per cent to senior citizens. These rates came into effect on June 14.
HDFC Bank, with effect from July 24, has been offering 7 per cent to general citizens and 7.5 per cent to senior citizens. The same interest rates are offered by ICICI Bank.
Meanwhile, Axis Bank’s rates are marginally higher. It offers 7.1 per cent to general citizens and 7.6 per cent to senior citizens. These rates were introduced on September 10, 2024.
