Before opening a fixed deposit (FD) account, depositors typically compare the interest rates offered by banks on their fixed deposits. Lenders, typically, offer lower interest rates on short term fixed deposits and higher rates on long term deposits. This means the interest offered on three-year FD is usually higher than that on one-year-FD.
Usually, depositors choose the bank with which they share a long term banking partnership. However, it is not unusual to choose a new bank for the sake of earning a higher interest, particularly when the interest differential is considerable.
Here, we share details on the interest offered on fixed deposits (FDs) by the top seven lenders.
Top 7 banks offer these interest rates on 1-year-FD
HDFC Bank: The largest private lender offers 6.6 percent to general citizens and 7.1 percent to senior citizens on 1-year-fixed deposit, as per the rates which came into force on July 24, 2024.
ICICI Bank: This private bank offers 6.7 percent to general citizens and 7.20 percent to senior citizens on an FD with tenure that ranges between one year to 15 months.
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Kotak Mahindra Bank: It offers 7.1 percent to general citizens and 7.6 percent on one-year fixed deposits to senior citizens with effect from June 14.
Federal Bank: It offers 6.8 percent to general citizens and 7.3 percent to senior citizens on one-year fixed deposits with effect from Oct 16.
(Source: Bank websites)
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State lenders
State Bank of India (SBI): The largest bank of India offers 6.8 percent to general citizens and 7.3 percent to senior citizens as per the rates which came into force on June 15.
Punjab National Bank (PNB): It offers 6.85 percent to general citizens and 7.35 percent to senior citizens on one-year fixed deposit with effect from October 1.
Canara Bank: Even Canara Bank also offers the same interest rate on fixed deposits i.e., 6.85 percent and 7.35 percent on one-year fixed deposits, These rates came into force on June 11.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
