The Reserve Bank of India (RBI) kept the benchmark interest rate unchanged for 10 consecutive meetings, but is expected to cut the repo rate at its next Monetary Policy Committee (MPC) meeting scheduled for December. Therefore, it is advisable to keep your savings in Fixed Deposits (FDs) for as long as possible, experts claim.
“If your financial goals are two to three years away, you can put the required amount in a fixed deposit. There is no need to wait any longer,” says Sebi-registered investment advisor and founder, Apna Dhan Financial Services. says Preeti Zende.
When an interest rate cut cycle begins, banks follow suit by lowering lending rates and term deposit rates. Here, we will introduce the top 7 banks with the highest interest rates on 3-year fixed deposits (FD).
It is worth noting that 1 year FD does not offer the best returns and 5 years tenure is too long for those who have financial goals in the near future.
Therefore, you can consider the possibility of keeping your money in a 3-year Fixed Deposit (FD) with a bank of your choice.
private lender
As can be seen from the table below, private lender HDFC Bank is offering an interest rate of 7 per cent to the general public and 7.5 per cent to senior citizens on three-year fixed deposits. These tax rates came into effect on July 24 this year. ICICI Bank also offers the same 7 per cent and 7.5 per cent interest rates to the general public and senior citizens.
(Source: Bank website)
Kotak Mahindra Bank, another private lender, offers 7% on three-year FDs to the general public and 7.6% to senior citizens. These rates went into effect on June 15th.
country lender
For national financial institutions, interest rates are slightly lower. State Bank of India (SBI) is offering 6.75% to the general public and 7.25% to senior citizens on three-year FDs. These rates went into effect on June 15th.
Punjab National Bank offers 3-year fixed deposits at 7% to the general public and 7.5% to senior citizens. These rates went into effect on October 1st. Union Bank of India offers 3-year fixed deposits at 6.7 per cent to the general public and 7.2 per cent to senior citizens. These are the latest rates effective August 2nd.
On the other hand, it is also important to mention that only a small to moderate portion of the overall portfolio should be allocated to fixed deposits as the returns on FDs are in the single digits and moreover they are taxable.
“You should not be tempted to keep large sums of money only in FDs just because the current FD rates are profitable. cannot be produced,” Zende added.
Note: This story is for informational purposes only. Please consult a SEBI registered investment advisor before taking any investment related decisions.
