FD Interest Rates Changed; 6 Banks Offer Highest Returns in Fixed Deposit

It is still a good time to invest in fixed deposits when the Reserve Bank of India (RBI) expects a cut in the repo rate later this year.

Banks Offer Highest Returns in FDs

Anshumaan Das | Jul 9, 2024 |

FD Interest Rates Changed; 6 Banks Offer Highest Returns in Fixed Deposit

FD Interest Rates Changed; 6 Banks Offer Highest Returns in Fixed Deposit

It is still a good time to invest in fixed deposits when the Reserve Bank of India (RBI) expects a cut in the repo rate later this year.

Ideally, the saved money can be frozen as long as possible to fit the prevalent rates of interest. As it has been realized, normally, there is an affirmative correlation between the interest charged on the deposit and the period of the deposit. In other words, the following is the flow of the ideas – A long-term loan means a high interest rate; on the other hand, if the term of a loan is short, it will attract a low rate of interest.

Below are several of the best banks and the interest rates that accompany 3-year fixed deposits:

In fact, to explain the mentioned rates of interest, one can only underline that the highest rate of interest, which reaches 7.25%, is paid by Punjab National Bank to normal savers on 3-year deposit instruments and has increased to 7.75% for senior citizens. Therefore, the future of such government programs aimed at meeting the needs of elderly customers is promising.

As such, HDFC Bank offers 7% on 3-year deposits to the common people of India and 7.5% for senior citizens.

Likewise, a rate of interest of 7% per annum for a 3-year deposit is also offered by ICICI Bank, and the bank pays an extra 50 basis points to senior citizens.

Bank                                                  Regular (%)  Senior citizens (%)
Kotak Mahindra Bank 7 7.6
State Bank of India (SBI) 7 7.5
Bank of Baroda 6.75 7.25
HDFC Bank 7 7.5
Punjab National Bank 7.25 7.75
ICICI Bank 7 7.5

Interest rates, which are offered for 3-year fixed deposits

The Bank of Baroda has up to 6.75% per annum for 3-year deposits and 7.25% for elders or senior citizens. SBI gives 7% to the common man and 7.5% to the senior citizens. Kotak Mahindra Bank also provides the same rate of interest on the 3-year deposits.

Two private lenders have hiked their FD rates. The rates for fixed deposits, otherwise known as savings FDs, were also hiked by ICICI Bank and Axis Bank quite recently.

ICICI Bank changed its interest rates with respect to fixed deposits, effective July 2nd. The new interest rates, range from as low as 3% to as high as 7.20% for ordinary people and 3.5% and 7.75% for elders or senior citizens, respectively.

On the same note, we learn that Axis Bank changed its interest rates on fixed deposits with effect from July 1.

It shows that the interest rates are between 3% and 7.2% for the average working population of a country and between 3.5 and 7.65% for senior citizens.

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