Bank fixed deposits (FDs), also known as term deposits are considered safest investment options. The duration of a fixed deposit may vary from seven days to ten years. Banks have been revising their FD rates since February 2019, however it is not in sync with the Reserve Bank of India reducing repo rate. FD interest rates are subject to change from time to time. Of late, all major banks including State Bank of India (SBI), ICICI, HDFC, Punjab National Bank, Bank of Baroda and Canara Bank have revised FD rates on select buckets. The fixed deposit account, which have a lock-in period of five or 10 years, also offer income tax benefits under Section 80C of the Income Tax Act.
Here are the latest fixed deposit interest rates offered by the top lenders:
SBI pays interest rates to the tune of 5.75-7% to the general public for FDs over a maturity period of seven days to 10 years. For FDs ranging between seven days and up to 1 year, SBI offers 6.4% to general public and 6.9% to senior citizens. On deposits which are 1 year to less than 2 years, SBI offers 7% and 7.5% to general customers and senior citizens respectively. On FDs which are 2 years to less than 3 years, the bank offers 6.75% interest rate. On deposits, which are 3 years to less than 5 years, the rate of interest offered by SBI is 6.70%. And on deposits which are 5 years and up to 10 years, the rate of interest offered by the bank is 6.60%.
ICICI Bank offers 5.5% interest rate on FDs with maturity of seven to 45 days. For FDs with maturity of 46-184 days, the bank offers an interest rate of 6.60%. FDs maturing in 185-289 days will fetch you 6.50% interest rate. Fixed deposits of 290 days to less than 1 year will give you 6.75% interest rate. On FDs maturing in 2-3 years, ICICI Bank offers 7.5% interest rate. ICICI Bank is offering a 7.25% interest rate on FDs maturing between three years and five years. On FDs maturing between five years and 10 years, ICICI Bank offers an interest rate of 7%. Senior citizens will continue to get an additional rate of interest of 0.5 per cent on their deposits.
HDFC Bank offers interest rate ranging from 3.5% to 7.4% on its fixed deposits across various tenures. 7 days to six months- 6.75%. On deposits maturing in six months to one year, the bank is offering a 7.3% interest rate. For deposits maturing in one to three years, HDFC Bank offers interest rate of 7.4%. On FDs maturing in three to five years, the bank offers a 7.25% interest rate. Senior citizens get an additional rate of interest of 0.5% on their deposits across all maturities. FDs maturing in five to 10 years will fetch 6.5% interest rate.
State owned Bank of Baroda (BoB) offers 5% interest rate on FDs with maturity period seven days to 90 days. On deposits maturing between 91 days to less than one year, the bank is offering 6.5% interest rate. On FD maturing between one year and two years, BoB is offering 6.8% interest rate. On deposits maturing between two and five years, BoB is offering 6.7% interest rate. On FDs maturing between five years and ten years, BoB offers an interest rate of 6.7%.
State-owned Canara Bank has revised interest rates on deposits which are less than ₹2 crore with effect from 4 July 2019. The bank offers FD ranging from 7 days to ten years. For deposits maturing in seven days to 269 days, Canara Bank offers 6% interest rate. For 270 days to one year FDs, the bank offers 6.7% interest rate. Canara Bank offers a 6.4% interest rate on one to less than 2 years deposits. For FDs maturing in two years and above to less than 5 years, the bank offers 6.4% interest rate. For long-term deposits (5-10 years), Canara Bank offers 6% interest rate. The bank offers an additional interest of 0.5% p.a. to deposits of Senior Citizens for all maturity slabs.