Fixed deposits (FDs) are financial instruments provided by banks or NBFCs that offer investors better interest rates than the regular savings accounts, but only if they hold it for a certain maturity period.
Some banks also offer benefits such as loans against FD certificates, at competitive interest rates.
Although interest rates have been on a downward trajectory lately, some banks still offer attractive FD interest rates.
Here is a list of interest rates of some leading banks in India:
– State Bank of India: SBI offers FDs between 7 days to 45 days gives 2.9 percent. Term deposits between 46 days to 179 days will give 3.9 percent. FDs of 180 days to less than one year will fetch 4.4 percent. Deposits with maturity between 1 year and up to 2 years will give 4.9 percent. FDs with tenor 3 years to less than 5 years will now give 5.3 percent and those maturing in 5 years and up to 10 years will give 5.4 percent. SBI offers senior citizens’ an additional 50 bps interest rate across all tenors. Senior citizens get 3.4 percent to 6.2 percent on FDs maturing in 7 days to 10 years.
– HDFC Bank: These interest rates are effective from 15 October. Between 7 days and 29 days, 2.50 percent interest rate on deposits is offered by HDFC Bank. 3 percent are offered on deposits maturing in 30-90 days . On 91 days to 6 months, 3.5 percent and on 6 months 1 day to less than one year, 4.4 percent. 4.9 percent on FDs maturing in one year. HDFC Bank gives 5 percent on deposits maturing in two years. FDs maturing in 2 years to 3 years will give 5.15 percent, 3 years to 5 years will give 5.30 percent. Deposits with maturity period 5 years to 10 years will give 5.50 percent interest.
-Punjab National Bank: These rates are with effect from 1 October. On fixed deposits maturing in the range of 7 days to 10 years, PNB is offering an interest rate ranging between 3 percent and 5.25 percent. On 7-45 days fixed deposits, PNB is offering an interest rate of 3 percent and it goes up 4.5 percent on less than 1 year FDs. PNB gives 5.20 percent interest on term deposits maturing in one year to upto 3 years. On deposits maturing above 5 years to 10 years, PNB is offering 5.25 percent interest.
-Canara Bank: These rates are effective from 1 October. Canara Bank offers 3 percent interest rate for term deposits with maturity period 7-45 days. For FDs with maturity period 46-90 days, 91 days to 179 days and 180 days to less than 1 Year, the bank gives 4, 4.05 and 4.50 percent interest rates respectively. Canara Bank gives 5.25 percent for FDs maturing in one year to less than three years. The state-owned bank gives 5.35 percent interest rate for FDs with three to ten years tenure.
-Bank of Baroda: These rates are with effect from 3 October. 2.9 percent interest on deposits with maturities 7 days to 45 days by Bank of Baroda. BoB offers an interest rate of 3.9 percent for FDs maturing in 46 days to 180 days. The bank gives 4.4 percent interest for short-term deposits with maturity period 181 days and above and less than 1 year. Bank of Baroda gives 4.9 percent interest for 1 year term deposits. 5.1 percent are offered for maturities above 1 year and upto 3 years. 3 years and 10 years maturities will fetch an interest rate of 5.3 percent.