Most people in India want to invest their money in fixed deposits (FDs) as they offer risk-free guaranteed return. FDs are quite popular, especially among senior citizens. Generally, FDs fetch a higher rate of interest as compared to savings. FD rates vary from bank to bank depending on the tenor of the deposits. Most banks offer FDs starting from 7 days up to 10 years. FDs with a lock-in period of 5 or more also offer income tax benefits under Section 80C. Kotak Mahindra Bank has revised its FD interest rate with effect from 2 March 2019. Earlier major banks like State Bank of India (SBI), Axis Bank, Punjab National Bank (PNB), ICICI Bank and HDFC Bank had hiked interest rates.Kotak Mahindra Bank is now offering 6.5% on maturity period of 180 days, 181 days to 269 days, and 270 days. On maturity period of 271-364 days, the bank is now offering 7% interest rate. The bank is offering a 7.30% interest rate on the maturity period of 365 days to less than 23 months. On the maturity period of 23 months to less than 3 years, the bank is offering 7.25%. For 3 years but less than 5 years of deposits, the bank is offering 7%. Deposits above 5 years and up to 10 years will fetch a 6.5% interest rate in Kotak Mahindra Bank.
Here is a list of banks that offer the highest FD rates for deposits up to ₹1 crore over various tenures:
FD interest rates of SBI
For FDs with a maturity period of 7-45 days, SBI is offering a 5.75% interest rate, 46-179 days 6.25%, 180-210 days 6.35% and 211 days to less than 1 year 6.4%. SBI offers senior citizens’ an additional 50 basis point interest rate across all tenures. On FD maturity between one year and two years, SBI is offering 6.80% interest rate. On FD maturity of 2-3 years, the bank offers 6.80%. On maturity between three and five years, SBI is offering 6.80% interest rate. SBI offers an interest rate of 6.85% on FDs with maturity period between five years and 10 years.
SBI short-term deposits: SBI offers interest rates on these FDs ranging from 5.75% to 6.4% annually. These FDs come with a minimum tenure of anywhere less than a year.
SBI medium-term deposits: SBI medium-term deposits have a lock-in period of at least 1 year. The interest rates on these FDs range from 6.4% to 6.76% annually.
SBI long-term deposits: These FDs come with 5 years to 10 years tenure and offer 6.85% interest rate.
FD interest rates of ICICI Bank
ICICI Bank offers short-term FDs ranging from 7 days to 289 days and long-term FDs ranging from 1-10 years. For FDs with a maturity of 7-45 days, ICICI Bank is offering 5.50%, 46-184 days 6.25%, 185-289 days 6.50%, and 290 days to less than 1 year 6.40%. On FDs maturing in 2-3 years, the bank is offering a 7.5% interest rate. ICICI Bank is offering a 7.25% interest rate on FDs maturing between three years and five years. ICICI Bank offers an interest rate of 7% on FDs with maturity between five years and 10 years.
FD interest rates of HDFC Bank
For FDs with a maturity of 7-90 days, HDFC Bank is offering 6.25%, and for 91 days to one year 7.30%. HDFC Bank is offering 7.3% on FDs with a maturity of one year to less than two years. HDFC Bank is offering a 7.4 % interest rate on FDs maturing in 2-3 years. HDFC Bank is offering a 7.25% interest on FDs maturing between three years and five years. The bank offers an interest rate of 6.5% on FDs with maturity between five and ten years.
FD interest rates of Punjab National Bank (PNB)
PNB is offering a 5.75% interest rate on FDs of up to ₹1 crore for maturity periods between 7-45 days. For one-year FDs, the bank is offering a 6.75% rate of interest. For maturity term of more than one year but less than three years, PNB offers a 6.75% interest rate. On FDs maturing between three years and 10 years, PNB is offering a 6.25% interest rate.