Before locking a fixed deposit (FD), one must compare interest rates offered by various banks. For 1-year deposits, most banks have interest rates of around 6.8 to 7%.
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Here’s a look at interest rates on term deposits of six different banks (private and state):
Axis Bank: Here, the interest is 6.7% on 1-year deposits of less than ₹2 crore. For 2-year, 3-year and 4-year deposits, the rate is 7.1%, and 7% for five years.
Bank of Baroda: A state lender, it gives 7% on FDs ranging between 1-2 years, 7.25% on 2-3 years, and 6.5% for those with a 4-year tenure.
HDFC Bank: For 1-year deposits, the interest is 6.6% for regular citizens and 7.1% for senior citizens.
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The rates for tenures of 15-18 months, 18-21 months, 21 months to 2 years 11 months, and 2 years 11 months to 35 months, are 7.1%, 7.25%, 7%, and 7.15%, respectively.
ICICI Bank: Customers of this private lender get 7.4% for 1-year FDs, 7.3% for anywhere between 390 days to 15 months, 7.05% for 15 months to 2 years, and 7% for more than 2 years.
Kotak Mahindra Bank: Here, 7.1% is offered for 1-year FDs, 7.15% on those for 2 years, 7% for 3-4 years, and 6.2% for five years.
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State Bank of India: The country‘s largest lender gives 6.8% interest for 1-year deposits, 7% for 2-3 years, 6.75% for 3-5 years, and 6.5% when the tenure goes beyond 5 years.
