Fixed deposits (FDs) are the safest means of investment. All major banks and Post Office provide the facility of depositing your lump some money for a fixed tenure. FDs offer higher interest rates as compared to savings account. FD rates of banks vary depending upon their tenure. Recently, the State Bank of India (SBI) and Punjab National Bank (PNB) revised interest rates on maturities effective 1 August 2019. Analysts expect other banks too would revise their interest rates after RBI monetary policy review on 7 August.
It’s always better to compare the FD rates of different banks before investing. Here is a list of banks and the FD rates offered by them.
SBI has slashed deposit rates on various tenors citing surplus liquidity and a falling interest rate scenario. Interest rates have been reduced by 50-75 basis points for time deposits with shorter tenors of up to 179 days. For FDs with maturity period of 7 days to less than 1 year, SBI offers 6.25% interest rate. On FDs maturing between one year and two years, the bank is offering 6.80% interest rate. For time deposits with longer tenors, there is a reduction of up to 20 bps in the retail segment. On FDs maturing in 2-3 years, SBI offers 6.70%. On maturity between three and five years, the bank is offering 6.60% interest rate. SBI offers an interest rate of 6.50% on FDs with maturity in between five years and 10 years.
PNB is offering 5% interest rate for seven days to 45 days deposits, and an interest rate of 6.3% for deposits maturing in 46 days to 333 days. For one-year FDs, PNB is offering 6.75% rate of interest. For maturity term of more than one year and up to three years, PNB offers 6.75% interest rate. On FDs maturing between three years and 10 years, PNB is offering 6.5% interest rate. The bank revised the rates twice in a month. The present FD rate is effective from 1 August 2019.
Axis Bank is offering 6.25% rate of interest on FDs with maturity between 7 days and 6 months, 6.50% for FDs maturing between 6 and 9 months, and 7% for FDs between 9 months and 1 year. The bank is offering an interest rate of 7.2% for fixed deposits maturing in one and two years. For deposits maturing in 2 years to less than five years, Axis Bank is now offering 7.2%. For FDs with maturity between five years and 10 years, Axis Bank offers an interest rate of 7%.
HDFC Bank is offering an interest rate of 5.50% on fixed deposits of seven to 45 days. For FDs maturing in 46 days to 6 months, the bank offers an interest rate of 6%. HDFC Bank is offering an interest of 7.10% on deposits with one-year maturity. For deposits maturing in 1 year to 2 years, the bank is offering an interest rate of 7.20%. For FDs with two to three years maturity period, HDFC Bank offers an interest rate of 7.30%. FDs maturing in three to five years will fetch an interest rate of 7.25%. Long-term FDs maturing in 5 years to 10 years will fetch an interest rate of 7%.
ICICI Bank is offering an interest rate of 6.75% on FDs with a maturity of 7 days to less than 1 year. On deposits 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.