This is the era of rising interest rates for lenders: both private as well as government. Soon after HDFC Bank raised its interest rates on fixed deposits (FDs), state lender Canara Bank also raised its interest rates on October 31 onwards.
Now the government-run bank offers an interest rate of 6.25 percent on term deposits of one-year tenor. For deposits between one and two years, the rate of interest will be 6.25 percent. However, when the deposit is of exactly 666-day, the rate of interest will be 7 percent.
Here we list out the banks that offer over 7% on their Fixed Deposits:
Canara Bank: As mentioned above, the state lender now offers 7 percent to term deposits of 666 days. For deposits of one year tenor, the rate of interest is 6.25 percent. For deposits between one and less than two years, the rate of interest is 6.25 percent.
When the deposits are of tenor between 2 and 3 years, the interest rate will be 6.25 percent. For term deposits of longer than 3 years, the rate of interest is 6.5 percent.
IDFC First Bank: For 750 days, the interest rate of fixed deposits is 7.25 percent. For tenor between 501 days to 749 days, the rate of interest is 6.75 percent. For tenor between 751 days to 5 years, the interest is 6.50 percent. For 5 years and above, the rate of interest is 6 percent.
RBL Bank: RBL Bank offers 7 percent to deposits for tenor between 453 days to 724 days and also for 726 days to less than 24 months. For deposits of 725-day tenor, the interest rate is 7.25 percent.
When the tenor is between 12 months to less than 15 months, the interest rate is 6.50 percent. And for tenor between 24 months to less than 36 months, the interest rate is 6.75 percent. When the tenor is between 12 months to less than 15 months, the interest rate is 6.50 percent.
|Banks||Interest rate on term deposits (%)|
|Canara Bank||7% (666 days)|
|IDFC Bank||7.25% (750 days)|
|7% (453-724; 726 to less than 24 months)|
|7.25% (725 days)|
|Union Bank||7% (599 days)|
(Source: Banks' official portals)
Union Bank: It offers 7 percent for deposits with 599-day tenor. For deposits with more than 2-year tenor, the interest rate is 6.7 percent. The state lender also offers this rate for a deposit of 444-day tenor. When the tenor is 445 days to 598 days, the tenor is 6.60 percent.
It is worth mentioning that ICICI Bank raised interest rates on its term deposit on the last day of September. Also, seven banks raised their fixed deposit (FD) rates in the month of August alone after the banking regulator raised repo rates to 5.4 percent on August 5.
These banks are Canara Bank, ICICI Bank, Indian Bank, Bank of Baroda, DBS Bank, Fincare SFB and IDBI Bank.