There are a number of banks that offer good returns on fixed deposits (FDs) with a maturity period of two years. FDs also known as term deposits are a good investment option as they offer guaranteed returns, premature withdrawals and loan facility. All senior citizens get an additional rate of interest on FDs. The advantage of FD is that with fixed amount, you can earn higher interest with better returns than savings accounts. Even short-term deposits, will earn you a better interest than keeping your lump sum in a saving account in a bank. All top lenders, including State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank and others have the option of both short-term and long-term FDs.
Here is a comparison of the FD rates on 2 year tenure offered by SBI, ICICI Bank, HDFC Bank, IDFC First Bank and AU Small Finance Bank effective August 2019.
SBI latest FD rates for two-year tenure
SBI offers FDs ranging from 7 days to 10 years with interest rate varying from 5.00% to 6.89%. The bank had revised rates on its deposits just days before the Reserve Bank of India slashed its repo rate by 35 basis points. On FDs with two year maturity period, SBI offers 6.70% interest to general customers and 7.20% to senior citizens. These FD rates are applicable from 1 August 2019 on new as well as renewal of FDs.
IDFC First Bank latest FD rates for two-year tenure
IDFC First Bank offers the highest interest rate on deposits of 2 years. The bank offers an interest rate of 8.00 and 8.50% to general public and senior citizens respectively.
HDFC Bank latest FD rates for two-year tenure
HDFC Bank revised interest rates on its term deposits with effective from 2 August. The bank gives an interest rate of 7.10% on maturities of two years. For FDs maturing in 1 year 17 days to 2 Years, the bank gives an interest rate of 7.10%. Senior citizens get 50 basis points above the general customers on these deposits.
ICICI Bank latest FD rates for two-year tenure
ICICI Bank offers deposits ranging from 7 days to ten years. The bank offers an interest rate of 4% to 7.10% across various maturities. ICICI Bank offers the highest rate of interest on deposits maturing in two years, i.e. 7.10%. For 18 months to 2 years, ICICI Bank gives 7.10% interest.
AU Small Finance Bank latest FD rates for two-year tenure
AU Small Finance Bank offers FDs ranging from 7 days to 10 years. On deposits maturing in 18 Months 1 Day to 24 Months, the bank gives 7.87% interest. AU Small Finance Bank offers interest rate ranging from 5.50% to 8.10%.