Fixed deposits (FDs) are attractive financial instruments for investors who cannot stomach risk. All major banks, including State Bank of India (SBI), HDFC, Punjab National Bank (PNB), ICICI Bank, Axis Bank, Bank of Baroda (BoB) and IDFC First Bank provide the facility of opening an FD account. Bank FDs give you a return of around 7-8% depending on the tenures. In its monetary policy review meeting, the Reserve Bank of India (RBI) slashed the repo rate for the fourth time in a row by an unprecedented 35 basis points (bps). After the recent rate cut, it is expected that the banks will pass on the benefit to the customers.
Here is a list of top lenders and the rate of interest offered by them on various tenures:
SBI has slashed interest rates on fixed deposits by 20 to 75 basis points across all maturities. For 7-45 days FDs, SBI offers an interest rate of 5%. SBI FDs with maturity between 46 days to 179 days offer an interest rate of 5.75%. For deposits maturing in 180 days to 1 year, the bank is offering an interest rate of 6.25%. For fixed deposits between 1 year and less than 2 years, SBI offers an interest rate of 6.7%. SBI’s 2-3 years FDs will fetch you 6.70%. For deposits between 3 years to less than 5 years, SBI offers an interest rate to 6.6%. On deposits maturing between 5 years and upto 10 years, SBI is offering an interest rate of 6.5%. The revised rates are applicable from 1 August.
HDFC Bank has revised its interest rates on fixed deposits below ₹2 crore on select maturities. The revised rates have been made effective from 2 August. The rates have been slashed by 10 basis points for deposits maturing in one year to two years. 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% on deposits with one-year maturity. For deposits maturing in 1 year to 2 years, the bank is offering an interest rate of 7.10%. For FDs with 2 to 3 years maturity period, HDFC Bank offers an interest rate of 7.30%. FDs maturing in 3-5 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%.
Punjab National Bank (PNB) has revised interest rates on fixed deposits on select maturities with effect from 2 August 2019. PNB is offering an interest rate of 5% on deposits maturing in 46 days to 179 days. The rates of deposits maturing in 180 days to 270 days will fetch an interest rate of 6.25%. For deposits maturing in 271 days to less than one year, PNB offers 6.30% interest rate. On deposits maturing in 333 days, the bank offers an interest rate of 6.30%. For deposits maturing in one year, PNB offers an interest rate of 6.75%. 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.
ICICI Bank is offering an interest rate of 6.75% on FDs with a maturity of 7 days to less than 1 year. Term deposits with 2-3 years maturity period will fetch an interest rate of 7.5%. ICICI Bank is offering a 7.25% interest rate on FDs maturing between three years and five years. On FDs with maturity between five years and 10 years, the bank offers an interest rate of 7%
Bank of Baroda (BoB) offers 4.75% interest rate on FDs maturing between seven days and 90 days. On deposits maturing between 91 days to less than one year, the bank is offering 6.25% interest rate. For one year term deposits, Bank of Baroda offers 6.45% interest rate. For FDs maturing in one year to two years, BoB is offering an interest rate of 6.55%. For deposits maturing in two to five years and five to ten years, Bank of Baroda is offering an interest rate of 6.45%.
IDFC First Bank is offering an interest rate of 6.5% on deposits maturing in between seven days and 90 days. On FDs maturing in one to two years, the bank offers an interest rate of 8.5%. For FDs maturity period two years to five years, IDFC First Bank offers 7.50% interest rate. For deposits with maturity period 5-10 years, the bank offers an interest rate of 7.25%.
