Although the interest rates do not differ between each other, yet the small difference of 10-20 basis points can make a considerable difference in the overall returns
Before locking your money in a fixed deposit (FD), it is vital to compare the interest rates offered by different banks. Typically, most banks offer lower rates for shorter duration and higher interest for longer durations.
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Here we give a lowdown on one-year interest rates offered by most top banks – both in the private and public sector. Although the interest rates do not differ between each other, yet the small difference of 10-20 basis points can make a considerable difference in the overall returns. For instance, a 20-basis point difference on an FD of ₹10 lakh can give you an additional interest of ₹2000 in one year.
If you keep the money locked in for three years, this additional saving will increase to ₹6,000. And if the deposit is higher by another ₹10 lakh, the total saving could further increase to ₹12,000. And this is because of an additional 20 basis points alone.
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| Bank | Regular citizens (%) | Senior citizens (%) |
|---|---|---|
| HDFC Bank | 6.60 | 7.10 |
| ICICI Bank | 6.7 | 7.2 |
| State Bank of India (SBI) | 6.80 | 7.30 |
| Kotak Mahindra Bank | 7.10 | 7.6 |
| Punjab National Bank (PNB) | 6.8 | 7.3 |
| Axis Bank | 6.7 | 7.2 |
(Source: Bank websites)
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As we can see in the table above, HDFC Bank offers 6.6 percent on a 1-year deposit to regular citizens and 7.10 percent to senior citizens. These rates came into force on July 24 this year. Meanwhile, ICICI bank offers 6.7 and 7.2 percent on 1-year deposit to regular and senior citizens. Axis Bank offers the same rates which came into force on Oct 21.
Kotak Mahindra offers 7.10 percent and 7.60 percent to regular and senior citizens with effect from June 14.
State lenders
SBI offers 6.8 per cent and 7.3 percent interest to regular and senior citizens as per the latest rates which came into force on June 15. And Punjab National Bank offers 6.8 percent to regular citizens and 7.3 percent to senior citizens with effect from Oct 1.
