FD rates: Fixed Deposits (FDs) continue to be a popular investment choice for individuals seeking stable returns. As of late 2023, several prominent banks, including State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank, and Punjab National Bank (PNB), have made adjustments to their FD interest rates. Here’s an insightful comparison of the FD rates offered by these banks, focusing on the highest rates available and the corresponding tenures.
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SBI– According to ET, SBI has recently increased its FD interest rates on specific tenures, effective from December 27, 2023. Notable changes include a 50 basis points hike for deposits maturing between 7 days to 45 days, bringing the rate to 3.50%.
Similarly, the interest rate for the tenure of 46 days to 179 days was raised by 25 basis points to 4.75%. Additionally, SBI enhanced rates for tenures of 180 days to 210 days, and deposits maturing between 211 days to less than 1 year and three years to less than five years.
SBI offers a range of interest rates, varying from 3.50% to 7.10%, covering tenures spanning 7 days to 10 years. The highest rate of 7.10% is applicable to a 400-day tenure.
HDFC Bank- HDFC Bank has adjusted its FD interest rates on October 1, 2023. The bank provides interest rates between 3% and 7.20% for general citizens and 3.50% to 7.75% for senior citizens. The peak interest rate of 7.20% is available for a specific tenure—4 Years 7 Months to 55 months—for general citizens.
ICICI Bank– ICICI Bank revised its FD rates on October 16, 2023. The bank offers interest rates ranging from 3% to 7.10% for general citizens and 3.50% to 7.65% for senior citizens. The highest interest rate of 7.10% is applicable to a tenure of 15 months to 2 years for general citizens.
Axis Bank– Axis Bank has implemented changes to its FD rates on December 26, 2023. The bank provides FD rates between 3.50% and 7.10% for the general public and 3.50% to 7.75% for senior citizens, covering tenures from 7 days to 10 years.
PNB– PNB offers FD rates ranging from 3.50% to 7.25% for the general public and 4% to 7.75% for senior citizens on deposits maturing in seven days to ten years. The highest rate of 7.25% is applicable to a tenure of 444 days.
Choosing the right FD involves considering not just the interest rate but also the tenure that aligns with your financial goals. As evident from the comparison, each bank has its unique offerings. Individuals should carefully assess their preferences and requirements before making an informed decision on where to invest their money for optimal returns.
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How do banks decide FD rates?– Banks determine Fixed Deposit (FD) rates based on the repo rate set by the Reserve Bank of India (RBI). The repo rate is the interest rate at which the RBI lends money to commercial banks. Banks align their FD interest rates with the current repo rate. Investors can monitor changes in repo rates to identify opportune times to invest in FD schemes, optimizing potential returns.
