In light of the recent rate cut by the US Fed, it is anticipated that the RBI may also go for a rate cut sooner or later. That is why now may be the right time to invest in fixed deposits.
Recent developments provide encouraging news for individuals considering investments in bank fixed deposits. A number of banks have recently raised the interest rates on their fixed deposit offerings. That means that this may be an opportune moment for you to explore fixed deposit investments.
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Furthermore, in light of the recent rate cut by the US Federal Reserve, it is anticipated that the Reserve Bank of India may implement a rate reduction in the near future. When this occurs, Indian banks are likely to lower the interest rates on their fixed deposits, resulting in the necessity for investors to secure fixed deposits at these diminished rates. This situation underscores the notion that now may be the right time to invest in fixed deposits or to extend the duration of existing FDs.
A fixed deposit (FD) is an attractive option for those who prefer a low-risk investment. It guarantees a fixed interest rate on the principal amount throughout the deposit’s term, allowing for interest accumulation over time. One significant benefit of FDs is their flexible tenure, which enables investors to manage multiple deposits with different durations.
You may choose to open an FD account with your current bank or select another institution that offers more favorable interest rates. The choice is yours; however, be aware that the process may vary, especially concerning KYC and other documentation requirements if you opt for a bank with which you do not have an existing relationship.
Fixed deposits provide a secure way to protect a specific amount while generating a reliable income stream. If you have a lump sum that you do not plan to access for some time, investing it in an FD account is a wise decision. The returns on FDs are stable, as they are not subject to market volatility, ensuring a predetermined interest rate for the agreed duration.
Opening an FD account has become a simple process. You can either use online banking services or visit the nearest branch of your bank. If you decide to open an FD account with the same bank where you hold a savings account, you can avoid the KYC process and transfer funds effortlessly.
Presented below is a compilation of several leading banks in India, such as SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of India, and Punjab National Bank, among others, which offer attractive interest rates on fixed deposits. You are encouraged to evaluate the interest rates and terms available, spanning from 1 to 5 years, in order to choose the option that aligns most effectively with your requirements.
| Bank Fixed Deposit Interest Rates | ||||
| Bank | <1 year | 1 to 2 years | 2 to 3 years | 3 to 5 years |
| Bank of Maharashtra | 6.9 | 7.15 | 7.25 | 6.5 |
| Bank of Baroda | 7.15 | 7.3 | 7.15 | 6.5 |
| Bank of India | 6 | 7.3 | 6.75 | 6.5 |
| Canara Bank | 6.25 | 7.25 | 6.85 | 6.8 |
| Central Bank of India | 6.25 | 7.45 | 6.5 | 6 |
| Indian Bank | 7.05 | 7.25 | 6.7 | 6.25 |
| Indian Overseas Bank | 5.75 | 7.3 | 6.8 | 6.5 |
| Punjab National Bank | 7.05 | 7.25 | 7 | 6.5 |
| Punjab & Sind Bank | 7.15 | 7.3 | 6.3 | 6 |
| State Bank of India | 6.5 | 7.25* | 7 | 6.75 |
| UCO Bank | 5.5 | 7.05 | 6.3 | 6.2 |
| Union Bank | 7.4 | 7.25 | 6.7 | 6.5 |
| Axis Bank | 6 | 7.25 | 7.1 | 7.1 |
| Bandhan Bank | 4.5 | 8.05 | 7.25 | 7.25 |
| Catholic Syrian | 7.25 | 7.75 | 7.1 | 5.75 |
| City Union Bank | 7.5 | 7 | 6.5 | 6.25 |
| DCB Bank | 7.25 | 8.05 | 7.55 | 7.75 |
| Dhanlaxmi Bank | 5 | 7.25 | 6.5 | 7.25 |
| Federal Bank | 6.5 | 7.35 | 7.4 | 7.4 |
| HDFC Bank | 6 | 7.25 | 7.35 | 7.4 |
| ICICI Bank | 6 | 7.25 | 7 | 7 |
| IDBI Bank | 7.05 | 7.35 | 7 | 6.5 |
| IDFC First Bank | 5.75 | 7.75 | 7 | 6.75 |
| IndusInd Bank | 6.5 | 7.99 | 7.25 | 7.25 |
| J & K Bank | 6.25 | 7 | 7 | 6.75 |
| Karnataka Bank | 6.75 | 7.5 | 6.5 | 6.5 |
| Kotak Bank | 7 | 7.4 | 7.15 | 7 |
| Karur Vysya Bank | 7.4 | 7.5 | 7.6 | 7 |
| RBL Bank | 6.05 | 8.1 | 7.5 | 7.1 |
| South Indian Bank | 5 | 7.25 | 7 | 6.7 |
| Tamilnad Mercantile Bank | 6 | 7.5 | 6.75 | 6.5 |
| TNSC Bank | 6.75 | 7.75 | 6.75 | 6.5 |
| Yes Bank | 6.35 | 8 | 7.25 | 7.25 |
| Data as on respective banks’ website on 27 Sep 2024; For each year range, the maximum offered interest rate is considered; interest rate is for a normal fixed deposit amount below ₹1 crore. *w.e.f 15 Jul 2024. Compiled by BankBazaar.com | ||||
