When it comes to long-term investment products, bank fixed deposits are one of the best and safest tools. In fixed-term deposits, an investor can put his savings for a particular period of time at a predetermined rate of interest ascertained by the banks. In comparison to other investment tools, bank fixed deposits can be easily dissolved if you urgently need your money back for any emergency. The rates of interest offered by the banks and financial institutions are not always the same but are always more than the savings accounts’ interest.
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During the pandemic period, the return on fixed deposits saw a decline. But as per experts, things may improve in the coming months despite high inflation. The Reserve Bank of India hiked the repo rates to 5.4% in August, following which most lenders have increased the interest rates on FDs.
Let’s take a close look at the major banks and their FD rates.
1. State Bank of India
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The State Bank of India (SBI) floated a new term deposit scheme, Utsav Deposit, to mark the 75th Independence Day. The largest lender has hiked its rates by 15 basis points and will offer an interest rate of 4.55% to 6.15% depending on the time period from August 15, 2022 to October 30, 2022. The senior citizens will get an additional 0.50 per cent on the standard interest rate. The rate is applicable on domestic term deposits of below Rs 2 crore.
The new rates are
| Tenure | New rate | Senior citizen rate |
| 180 to 210 days | 4.55% | 5.05% |
| 2 to 3 years | 5.50% | 6% |
| 3 to less than 5 years | 5.60% | 6.10% |
| 5 to 10 years | 5.65% | 6.15% |
2. Bank of Baroda
The Bank of Baroda announced its new Baroda Tiranga Deposit Scheme on August 16, which is a special term deposit product that will offer higher interest rates on deposits below Rs 2 crore. The scheme is valid from August 16 to December 31, 2022. For the callable schemes, the interest rates are between 5.75% and 6.25% for 444 days, whereas for 555 days, it is between 6% and 6.50%.
If one chooses the non-callable scheme, the interest rates are a bit higher. For general investors, it is 5.90%, whereas, for senior citizens, it is 6.40% for 444 days. For the longer term, it is 6.15% per annum for all investors and 6.65% for senior citizens. If one can invest Rs 1 lakh for 555 days, he/she will get Rs 1.26 lakh at the time of maturity. The senior citizens would get a little more Rs 1.28 lakh at the time of maturity.
| Time period (callable scheme) | General rate | Senior citizen rate |
| 444 days | 5.75% | 6.25% |
| 555 days | 6.00% | 6.50% |
| Time period (non-callable scheme) | General rate | Senior citizen rate |
| 444 days | 5.90% | 6.40% |
| 555 days | 6.15% | 6.65% |
3. ICICI Bank
The private sector major is offering interest rates as high as 5.90% p.a. for senior citizens and general investors depending on the investment maturity period. The new rates, which are effective from August 9, will be applicable on deposits between Rs 2 crore and Rs 5 crore, as per reports. The rates were revised after the central bank revised the key repo rate by 50 basis points for the third time in a row to tame the rising inflation.
| Tenure | General public rate | Senior citizens rate |
| 185 days-270 days | 5.25% | 5.25% |
| 271 days to 1 year | 5.50% | 5.50% |
| 1 year to 10 years | 5.90% | 5.90% |
