A fixed deposit interest rate allows investors to let their savings grow consistently without running an iota of risk. The rates of interest not only differ from bank to bank, but also surge with time duration - which means the longer you park your money in a FD, the higher will be the rate of interest.
Here we scan through the rates of interest of some of the top commercial banks to explore the returns they offer on fixed deposits.
Most banks allure depositors by offering different rates based on the number of days a deposit has been made. We present the returns given on deposits made for six months, one year and two years to give an indication of these offerings.
For a fixed deposit for six months (i.e., 180 days), IDFC First Bank offers 4.1 percent per annum. At the same time, IndusInd Bank offers 4.25 percent per annum for the same duration. HDFC Bank offers marginally lower interest for the same duration at 3.5 percent per annum. The other private lender ICICI Bank also offers the same rate of 3.5 percent per annum where the largest bank SBI offers the maximum rate i.e., 4.4 percent per annum for a six-month deposit.
For one year deposit, IDFC First Bank offers 4.8 percent per annum. At the same time, Indus Ind bank offers a higher rate of 6 percent per annum. HDFC Bank, on the other hand, offers 5 percent per annum. The same rate is offered by its rival ICICI Bank at 5 percent. SBI, on the other hand, offers the maximum rate of 5.1 percent per annum.
|Bank||One-year FD rate (%)||Two-year FD rate (%)|
(Source: Official portals of banks)
For a two-year deposit, IDFC First Bank offers 5 percent per annum. At the same time, IndusInd Bank offers a rate of 6 percent.
Both top private lenders HDFC Bank and ICICI Bank offer 5 percent per annum on their two-year fixed deposits. State Bank of India offers 5.1 percent per annum.
Meanwhile, HDFC Bank extended its special fixed deposit scheme for senior citizens, a media report suggested.