Ever since the Reserve Bank of India (RBI) raised the key lending rates in an unscheduled meet in May 2022, the term deposit rates of commercial banks have been rising continuously. Since that day, the banking regulator has raised the repo rate by a total of 250 basis points.
The impact on the interest rates of term deposits — albeit not proportionate — has been significant since then.
Here we list out the banks that offer higher than 7 percent per annum on their term deposits. These interest rates are given on specific tenors which are mentioned in each case.
Banks offering higher than 7% interest rate on FDs:
HDFC Bank: It offers more than 7 percent to depositors for deposits of tenors longer than 15 months. The maximum rate offered is 7.75 percent for deposits of 55 months to senior citizens. Rates of interest for other tenors range between 3 percent to 6.6 percent.
State Bank of India (SBI): State Bank of India offers 7 percent to depositors for tenors in the range of 2 years to less than three years with effect from Feb 15, 2023. The state lender also offers 7.10 percent for 400-day tenor under a special scheme called Amrit Kalash. The highest rate that the bank offers is 7.6 percent to senior citizens for 400 days.
ICICI Bank: ICICI Bank offers 7.10 percent interest rate on its fixed deposits that are deposited for a duration of 15 months and longer.
The highest interest rate that the private lender offers is 7.6 percent to senior citizens for tenor that ranges between 15 months to 2 years.
|Bank||Highest rate (%)||Tenor|
|HDFC Bank||7.75||55 months|
|State Bank of India||7.6||400 days|
|ICICI Bank||7.6||15 months- 2 years|
|Kotak Mahindra Bank||7.7||390 days to > 2 years|
|Bank of Baroda||7.75||399 days|
|Canara Bank||7.75||444 days|
(These rates of interest on FDs are only offered to the senior citizens)
Kotak Mahindra: Kotak Mahindra offers 7.10 percent interest rate on fixed deposits that are longer than 364 days. When tenor increases to 390 days or more, the rate rises to 7.20 percent.
The maximum rate of interest that the bank offers is 7.70 percent which is given to senior citizens for a tenor that ranges between 390 days to less than two years.
Bank of Baroda: The state lender offers higher than 7 percent for tenors that ranges between 2-3 years (7.05 percent) and for 399 days for which it offers 7.25 percent under Baroda Tiranga Plus Deposit Scheme.
The maximum rate of interest of 7.75 percent is given to senior citizens for 399 days under Tiranga Plus Deposit Scheme.
Canara Bank: This Bank offers 7.25 percent interest to its depositors for a tenor of 444 days. And interestingly, when the tenor increases to longer than 444 days, the rate of interest falls to 6.90 percent.
The maximum rate of interest that the bank offers is 7.75 percent to its senior citizens for a tenor of 444 days.