With the Reserve Bank of India keeping the repo rate unchanged at 4%, many banks have reduced their fixed deposit interest rates. This has been a worrying factor for countless risk-averse investors who heavily rely on fixed deposit returns to meet their financial goals and even to fund their day-to-day expenses. In doing so, many investors prefer government banks over private, foreign or small finance banks for total risk mitigation.
So, if you’re looking to open an FD, here are the current interest rates that are being offered by the government banks in the country. Do note, we have only considered the highest advertised interest rates for each of the public sector banks mentioned in the table below and their applicable tenures. Also, keep in mind that all the interest rates mentioned below are for normal fixed deposits amounting to less than Rs. 1 crore. Senior citizen depositors usually get preferential rates by up to 50 basis points over and above the normal rates.
FD Interest Rates Currently Being Offered by Government Banks
|Bank Name||Highest Advertised FD Interest Rate||Applicable Tenure|
|Union Bank||5.55% p.a.||2 to 5 years|
|Canara Bank||5.50% p.a.||2 to 5 years|
|State Bank of India||5.40% p.a.||3 to 5 years|
|Bank of India||5.30% p.a.||1 to 5 years|
|Punjab National Bank||5.30% p.a.||3 to 5 years|
|Punjab & Sind Bank||5.25% p.a.||1 to 5 years|
|Indian Bank||5.25% p.a.||2 to 5 years|
|Bank of Baroda||5.25% p.a.||3 to 5 years|
|Indian Overseas Bank||5.20% p.a.||1 to 5 years|
|IDBI Bank||5.10% p.a.||1 to 5 years|
|Central Bank of India||5.10% p.a.||2 to 5 years|
|UCO Bank||5.00% p.a.||1 to 5 years|
|Bank of Maharashtra||4.90% p.a.||1 to 5 years|
Disclaimer: Data as on respective banks’ website on April 02, 2021. For each year range, the maximum offered interest rate is considered. Interest rates are for normal fixed deposits amounting to below Rs.1 crore. Image: jcomp/Freepik
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.