There banks are providing best interest rates for short-term FDs: Know rates

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Banks across the country have been increasing interest rates on fixed deposits (FDs) since the Reserve Bank of India began hiking repo rate in May, 2022 to contain inflation. This month, RBI increased the repo rate by 35 basis points (bps) to 6.25 per cent. This was the 5the consecutive rate hike by the RBI since May. Overall, the repo rate has been increased by 225 bps since May after the latest hike. Investors can benefit from the rise in FD rates and earn a good return. According to Economic Times, experts say that it is preferable to invest in short-term fixed-rate deposits amid rising rates in order to profit from the hike during the investment period.

Hence, it would be wise to invest in an FD with a maturity period of six months to 1 year. When these FDs mature and are renewed, you can book longer-term FDs at a better rate.

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So, here are some of the banks that are offering best short-term FD rates:

SBI: For terms between 180 days and less than a year, State Bank of India (SBI) offers FD rates ranging from 5.25-5.5 per cent to regular citizens. The interest rate for seniors ranges from 5.75-6 per cent.

HDFC Bank: HDFC Bank offers interest rates between 5.25-5.5 per cent to regular citizens on FDs maturing in six months to less than 1 year. Interest rates for seniors range from 5.75-6 per cent for the same tenure.

PNB: For terms between six months and 1 year, PNB provides FD rates ranging from 5.5-6 per cent to regular citizens. For the same period, FD rates for senior citizens range between 6-6.8 per cent, while the rate stands at 6.3-7.1 per cent for super senior citizens.

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ICICI Bank: ICICI Bank gives interest rates ranging between 5.25-5.5 per cent to regular citizens on deposits maturing in six months to less than a year. The senior citizens are getting 5.75-6 per cent interest rate on deposits for the same period.

Canara Bank: The bank provides interest rates ranging from 5.5-6.25 per cent to regular citizens on FDs maturing in six months to a year. The FD rate stands at 6-6.75 per cent for the same term.