If you’re planning to open a hard and fast deposit (FD) account, it’s advisable to first evaluate the rates of interest provided by completely different banks. Though depositors are inclined to go for the financial institution with which they share a long-term relationship, they will nonetheless select a financial institution that offers them a better fee of curiosity on fastened deposits.
The financial coverage committee of the Reserve Financial institution of India (RBI) stored the benchmark repo rate unchanged at 6.5 per cent for the tenth time in a row, Governor Shaktikanta Das introduced. Nevertheless, the banking regulator is predicted to chop the rate of interest within the December assembly, which may have a ripple impact on lending in addition to deposit charges.
Due to this fact, depositors are advised to lock the fixed deposits on the prevailing excessive charges of curiosity.
Lengthy tenure deposits
Usually, banks give a better fee of curiosity on long- duration fixed deposits. This implies the longer the deposit tenure, the upper the speed of curiosity. Quite the opposite, the shorter the FD tenure, the decrease the speed of curiosity.
We’ve compiled an inventory of rates of interest provided by completely different banks on their three-year fastened deposits. These rates of interest are greater than these provided on short-duration deposits, corresponding to one yr or six months. Moreover, the rates of interest provided to senior residents are greater by 50-65 foundation factors.
Right here we give a lowdown on the rates of interest provided by the highest banks within the nation together with HDFC Bank, State Bank of India, Kotak Mahindra Financial institution, ICICI Bank and Axis Bank.
As we will see within the desk above, the three-year fastened deposit rate of interest provided by SBI is 6.75 per cent for normal residents and seven.25 per cent for senior residents. These charges got here into pressure on June 15.
Financial institution of Baroda presents 6.5 per cent to normal residents and seven.15 per cent to senior residents. The newest charges got here into pressure on October 3. Kotak Mahindra Bank presents 7 per cent to normal residents and seven.6 per cent to senior residents. These charges got here into impact on June 14.
HDFC Financial institution, with impact from July 24, has been providing 7 per cent to normal residents and seven.5 per cent to senior citizens. The identical rates of interest are provided by ICICI Financial institution.
In the meantime, Axis Financial institution’s charges are marginally greater. It presents 7.1 per cent to normal residents and seven.6 per cent to senior residents. These charges had been launched on September 10, 2024.
