New and small banks are currently offering higher interest rates on deposits than old banks because they want to increase their customer base
What do you get on your one-year fixed deposit (FD)? If you bank with the older large commercial banks, you would have seen rates falling over the past two years. For instance, State Bank of India (SBI), the country’s largest lender, currently pays an interest rate of 6.90% on one-year FDs. Private sector banks such as ICICI Bank Ltd and HDFC Bank Ltd pay the same.