Latest FD interest rates: SBI vs Kotak Mahindra vs ICICI vs HDFC Bank vs PNB
FDs fetch a higher rate of interest as compared to savings
FDs with a lock-in period of 5 or more also offer income tax benefits under Section 80C
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.