Bank FD Interest Rate: Many investors find fixed deposits a comfortable and convenient mode of investment to earn low but guaranteed returns. Financial planners often suggest fixed deposits only to investors with nil or very low appetite for risk. With key interest rates at multi-year lows, returns of fixed deposits have reduced in recent times. Yet, the returns out of a term deposit – wherein the money is locked in for a pre-defined period of time, say few years – are guaranteed, contrary to equities or equity-based funds.

Currently, the country’s biggest lenders, such as SBI and HDFC Bank, provide annual returns up to 5.4-5.5 per cent to the general public, and 6.2-6.25 per cent to senior citizens, on fixed deposits.

Here’s a comparison of the interest rates provided by SBI, HDFC Bank and some other top lenders of the country at present:

HDFC Bank

Maturity Period Interest Rate (With Effect From August 25)
Public Senior citizen
Seven days to 14 days 2.50% 3.00%
15 days to 29 days 2.50%  3.00%
30 days to 45 days 3.00% 3.50%
46 days to 60 days 3.00% 3.50%
61 days to 90 days 3.00% 3.50%
91 days to six months 3.50% 4.00%
Six months one day to nine months 4.40%  4.90%
Nine months one day to less than one year 4.40% 4.90%
One year 5.10%  5.60%
One year one day to two years 5.10%  5.60%
Two years one day to three years 5.15%  5.65%
Three years one day to five years 5.30%  5.80%
Five years one day to 10 years 5.50%  6.25%

SBI

Maturity Period Interest Rate With Effect From May 27
Public Senior citizen
Seven days to 45 days 2.9% 3.4%
46 days to 179 days 3.9% 4.4%
180 days to 210 days 4.4% 4.9%
211 days to less than one year 4.4% 4.9%
One year to less than two years 5.1% 5.6%
Two years to less than three years 5.1% 5.6%
Three years to less than five years 5.3% 5.8%
Five years and up to 10 years 5.4% 6.2%

ICICI Bank

Lock-In Interest Rate With Effect From August 7
Public Senior citizen
Seven to 14 days 2.50% 3%
15 to 29 days 2.50% 3%
30 to 45 days 3% 3.50%
46 to 60 days 3% 3.50%
61 to 90 days 3% 3.50%
91 to 120 days 4% 4.50%
121 to 184 days 4% 4.50%
185 to 210 days 4.40% 4.90%
211 to 270 days 4.40% 4.90%
271 to 289 days 4.40% 4.90%
290 days to less than one year 4.50% 5%
One year to 389 days 5% 5.50%
390 days to less than 18 months 5% 5.50%
18 months and one day to two years 5.10% 5.60%
Two years and one day to three years 5.10% 5.60%
Three years and one day to five years 5.35% 5.85%
Five years and one day to 10 years 5.50% 6.30%
Five years tax-saver FD (maximum ₹ 1.50 lakh) 5.35% 5.85%

Kotak Mahindra Bank

Maturity Period Interest Rate With Effect From August 26
Seven to 14 days 2.50%
15 to 30 days 2.50%
31 to 45 days 3%
46 to 90 days 3%
91 to 120 days 4%
121 to 179 days 4%
180 days 4.60%
181 to 269 days 4.70%
270 days 4.70%
271 to 363 days 4.70%
364 days 4.75%
365 to 389 days 4.75%
390 days (12 months and 25 days) 5.10%
391 days to less than 23 months 5.10%
23 months 5.10%
23 months and one day to less than two years 5.10%
Two years to less than three years 4.90%
Three years and above but less than four years 4.90%
Four years and above but less than five years 4.75%
Five years and above up to 10 years 4.50%

All these commercial banks offer slightly higher returns to senior citizen customers compared to other depositors.

Meanwhile, the Reserve Bank of India (RBI) has reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50 per cent.

Source:- ndtv