Risk-averse investors as well as senior citizens bank on FDs for assured returns as well as the safety of capital. However, the falling interest rates of FDs apart from many other safe investment options like PPF are keeping them confused.
- Banks have been lowering the interest rates on fixed deposits across various tenures in the past 2-3 months
- Compare the rates offered by different banks before investing in an FD account
Along with many other banks, the State Bank of India, India’s largest bank, has recently slashed its fixed deposit rates, which is bad news for investors looking to park their hard-earned money in FDs. After all, many risk-averse investors as well as senior citizens bank on FDs for assured returns as well as the safety of capital. However, the falling interest rates of FDs apart from many other safe investment options like PPF are keeping them confused and they are wondering what to do in the current scenario.
Industry experts, however, say that there is not much to worry as some banks are still offering higher interest rates. Small finance banks, for example, are currently offering the highest FD rates. In fact, a few of them are offering interest rates as high as 9% per annum.
Bank fixed deposit (FD) is one of the most popular investment product. All the major banks including State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank, HDFC Bank, Axis Bank and others have revised interest on fixed deposits after RBI repo rate cut. Banks have been lowering the interest rates on fixed deposits across various tenures in the past 2-3 months. Before investing in a bank FD, it's always better to compare the rates offered by various banks.
Latest FD interest rates (below ₹2 crore) for general public in various banks
State Bank Of India - SBI
SBI offers FDs with tenure 7 days and 10 years and the interest rate varies from 4.50% to 6.50%. For FDs maturing in 7 days to 45 days, SBI gives 4.50% interest, 46 days to 179 days 5.50%, 180 days to less than 1 year, 5.80%. SBI gives the highest interest rate of 6.50% on deposits maturing in 1 year to less than 2 years.SBI gives 6.25% interest on deposits maturing in 2 years to 10 years.
Panjab National Banl - PNB
PNB is offering an interest rate ranging between 4.5% and 6.5% on fixed deposits maturing in the range of 7 days to 10 years. PNB is offering an interest rate of 4.5% on 7-45 day fixed deposits, 5.5% on 46 to 179 day FDs. On 180 days to 270 days FDs, PNB is paying 6%. PNB is giving 6.00% interest on deposits maturing in 271 days to less than 1 year. Deposits maturing in 333 days and 1 year will fetch an interest rate of 6.1% and 6.5% respectively.
PNB is offering 6.5% on 444-day and 555-day maturity FDs. On 1 year to 2 years, the bank is offering 6.4% and on 2 years to 3 years, PNB is offering 6.25%.On FDs between 3 years and up to 5 years, PNB is offering 6.25% interest and above 5 years and upto 10 years, the bank is offering 6.5% interest. The highest interest rate offered by PNB is 6.5% on deposits maturing in 1 year, 444 days, 555 days and above 5 years and upto 10 years
ICICI Bank
Private lender ICICI Bank gives 4% interest rate between 7 days and 14 days. For 15 days to 29 days fixed deposit, ICICI Bank is offering 4.25%, 30 days to 45 days 5.00%. For 46 days to 184 days, the bank gives 5.50%, 185 days to 289 days 6.00%.For FDs maturing in 290 days to less than 1 year, ICICI Bank gives 6.25%. For FDs between 1 year to less than 18 months, ICICI Bank is offering 6.60% interest. For deposits maturing in 18 months to 2 years, ICICI Bank gives the highest interest rate, i.e. 7.00% interest. For term deposits maturing in 2 years to 10 years, ICICI Bank offers an interest rate of 6.90%.
Axis Bank
Axis Bank offers 3.50% and 4.00% interest on FDs between 7 days to 14 days and 15 days to 29 days respectively. On FDs between 30 days to 45 days, the bank gives 5.20% interest. For 46 days to less than 3 months, the interest rate is 5.65%. For FDs with 3 months to less than 6 months, Axis Bank offers 5.75%. On FDs maturing between 6 months to less than 9 months, the bank offers an interest rate of 6.25%.
For FDs maturities tenure 9 months to less than 1 year, Axis Bank gives 6.35% interest. For FDs maturing in 1 year to less than 1 year 25 days, Axis Bank gives 6.60% interest. Term deposits maturing in 1 year 25 days to less than 18 months will fetch an interest rate of 6.70%. For deposits maturing in 18 months to less than 2 years, the bank will give 6.80% interest. On FDs between 2 years to less than 3 years, Axis Bank pays 7.00%, the highest across all tenures. For deposits maturing in 3 years to ten years, the bank gives 6.75% interest.
HDFC Bank
HDFC Bank offers 3.50% interest rate deposits between 7 days and 14 days. For 15 days to 29 days maturity FDs, HDFC Bank is offering 4.25%, 30 days to 45 days 5.15%, 46 days to 6 months 5.65%, six months one day to nine months 6.25% and nine months one day to less than 1 year 6.35%. For FDs with maturity period 1 year and 2 years, the bank gives 6.60% interest. For deposits maturing in 2 years 1 day to 3 years, HDFC Bank gives the highest interest rate at 7%. For FDs maturing in 3 years 1 day to 10 years, the bank will offer an interest rate of 6.90%
Highest interest rates:
- 1 year to less than 2 year— SBI 6.50%
- 1 year —PNB 6.50%
- 444 days—PNB 6.50%
- 555 days—PNB 6.50%
- 5 years and up to 10 years—PNB 6.50%
- 18 months to 2 years—ICICI Bank 7.00%
- 2 years to less than 3 years—Axis Bank 7.00%
- 2 years 1 day- 3 years—7.00%
