Before opening a fixed deposit (FD) with a bank, depositors tend to compare the interest rates offered by a bank with those of other banks.
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Typically, banks offer higher rates of interest on long term deposits. This means longer the duration, higher the rate of interest. Conversely, shorter the duration, lower the rate of interest.
Besides, investors are tempted to open a fixed deposit account in a bank where they already have an account, however, when the difference in interest rates is substantial, they may get tempted to open a term deposit account at another bank in order to maximise the earnings.
Here, we compare the latest interest rates offered by different banks in private and public sector on their 3-year-deposits.
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Latest interest rates offered by top banks:
I. HDFC Bank: The largest private lender offers 7 percent interest on its deposits of 3-year tenure. Senior citizens are offered 7.5 percent interest on the deposits of same tenure. Interestingly, the highest interest of 7.4 percent per annum is offered when the tenure is 4 years and 7 months. These rates came into effect on July 24, 2024.
II. ICICI Bank: ICICI Bank offers an interest of 7 percent per annum to depositors on its fixed deposit (FD) of 3-year-tenure, while senior citizens are given 7.5 percent per annum.
The highest interest rate of 7.25 percent is offered on the deposits with tenure between 15 months to 2 years. These rates came into effect on August 10, 2024.
III. State Bank of India (SBI): State-run lender SBI offers 6.75 percent interest on deposits of three-year tenure. Senior citizens are entitled to receive 7.25 percent on the deposits of same tenure. When the tenure is between 2-3 years, the interest is 7 percent per annum. These rates came into force on June 15, 2024.
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Interest rate offered on FDs with 3-year-tenure:
(Source: Bank websites)
IV. Bank of Baroda: Bank of Baroda offers 7.15 percent to depositors on an FD of three-year tenure. Senior citizens are entitled to receive 7.65 percent on these deposits. These rates are effective July 15, 2024.
V. Kotak Mahindra Bank: Kotak Mahindra Bank offers an interest rate of 7 percent on 3-year fixed deposits. Senior citizens are offered 60 basis points higher i.e., 7.6 percent. Interestingly, highest interest rate of 7.4 percent is offered on terms deposits of 390 and 391 days. These rates came into force on June 14, 2024.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
