If you wish to open a fixed deposit (FD) account, you should first compare the interest rates given by several banks. Although depositors tend to prefer the bank with which they have a long-standing relationship, they can still select a bank that offers a greater rate of interest on fixed deposits.
Governor Shaktikanta Das said that the Reserve Bank of India's (RBI) monetary policy committee held the benchmark repo rate constant at 6.5% for the tenth time in a row. However, the banks regulator is expected to slash interest rates in its December meeting, affecting both lending and deposit rates. Depositors are recommended to lock up fixed deposits at the current high interest rates.
Long-term Deposits
Banks typically provide a greater rate of interest on long-term fixed deposits. This indicates that the longer the deposit, the higher the interest rate. The shorter the FD tenure, the lower the interest rate.
There is a list of the interest rates offered by various banks on three-year fixed deposits. These interest rates are higher than those offered for shorter-term deposits, such as one year or six months. In addition, senior persons' interest rates are 50-65 basis points higher. Here we provide an overview of the interest rates offered by the country's main banks, including HDFC Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank, and Axis Bank.
As seen in the table above, SBI offers a three-year fixed deposit interest rate of 6.75 percent for ordinary people and 7.25 percent for senior citizens. These rates went into effect on June 15. Bank of Baroda provides 6.5% to general residents and 7.15% to senior citizens. The latest tariffs went into effect on October 3. Kotak Mahindra Bank offers 7% for general residents and 7.6% for elderly citizens. The tariffs went into effect on June 14.
Since July 24, HDFC Bank has started offering 7% to ordinary residents and 7.5% to senior citizens. ICICI Bank offers the same interest rates. Meanwhile, Axis Bank's rates are slightly higher. It provides 7.1% to ordinary residents and 7.6% to senior persons. These tariffs were implemented on September 10, 2024.
