Before investing in fixed deposits, it is important to compare the deposit interest rates offered by different banks. Here we list the interest rates offered by various banks in the private and public sectors. On the other hand, it is important to note that depositors tend to choose financial institutions with which they share long-term banking relationships.
However, opening an account with a bank that offers higher interest rates is not a bad thing and can lead to significantly higher income in the long run.
For example, if you earn 1% additional interest on an FD worth Rs 50,000 over three years, you will get an additional income of Rs 15,000. If your FD is ₹10 million, this ‘extra’ amount will be ₹30,000.
Moreover, most banks usually offer higher interest rates on long-term fixed deposits but lower interest rates when the FD is held for a short period of time. For example, a six-month term deposit typically offers a lower interest rate than a two-year term deposit.
Here we will introduce 3-year term deposit interest rates from eight major banks. Let’s take a look at them:
private bank
As you can see from the table below, HDFC Bank offers 7% per annum to the general public and 7.5% per annum to senior citizens on 3-year fixed deposits. The latest interest rates came into effect on July 24 this year.
ICICI Bank offers 7% and 7.5% on three-year fixed deposits for the general public and senior citizens. Kotak Mahindra Bank offers 7% to the general public and 7.6% to senior citizens. These charges went into effect on June 14, 2024.
(Source: Bank website)
According to the latest announcement on October 16th, the Federal Bank is offering 7% and 7.5% to the general public and senior citizens.
country lender
On the other hand, State Bank of India (SBI) offers slightly lower interest rates of 6.75% for general citizens and 7.25% for senior citizens. These charges were introduced on June 15 this year.
Bank of Baroda, on the other hand, offers slightly higher interest rates of 7.15 per cent for the general public and 7.65 per cent for senior citizens. The country’s financial institutions introduced these rates on October 14th.
Punjab National Bank offers 3-year fixed deposits at 7% and 7.5% to the general public and senior citizens respectively. Finally, Union Bank of India offers the lowest interest rates of 6.70 per cent and 7.20 per cent for the general public and senior citizens respectively.
Note: This story is for informational purposes only. Please consult a SEBI registered investment advisor before taking any investment related decisions.
