FD interest rates Update: Nowadays, many investors prefer to keep their money safe in Fixed Deposits (FD). If you also want to invest in an FD, you should first check which banks offer the highest interest rates. Before making an FD, always compare the interest rates of different banks.

Now, let’s look at which banks offer the highest interest rates for different periods. Some banks provide the best rates for 2-3-year FDs, while others offer the highest returns on 15-18-month deposits.

7 Banks Offering Great Interest Rates on Fixed Deposits:

1. Federal Bank

Federal Bank is offering a 7.5% interest rate to general citizens and an 8% interest rate to senior citizens on fixed deposits for 444 days.

2. HDFC Bank

HDFC Bank provides a 7.4% interest rate to general citizens and a 7.9% interest rate to senior citizens on fixed deposits of 4 years and 7 months.

3. ICICI Bank

ICICI Bank offers a 7.25% interest rate to general citizens and a 7.85% interest rate to senior citizens on fixed deposits ranging from 15 to 18 months.

4. Kotak Mahindra Bank

Kotak Mahindra Bank offers a 7.4% interest rate to general citizens and a 7.9% interest rate to senior citizens on fixed deposits for 390 to 391 days.

5. State Bank of India (SBI)

SBI, a government bank, offers a slightly lower interest rate—7% for general citizens and 7.5% for senior citizens on fixed deposits of 2 to 3 years.

6. Bank of Baroda

Bank of Baroda offers a 7.15% interest rate to general citizens and a 7.65% interest rate to senior citizens on fixed deposits of 2 to 3 years.

7. Union Bank

Union Bank offers a 7.3% interest rate to general citizens and a 7.8% interest rate to senior citizens on fixed deposits of 456 days.

Why the Difference in Interest Rates Matters

You might think that the difference in interest rates between banks is small, so it doesn’t matter much. However, this is not the case. Even a slight difference of 50 basis points (0.5%) can significantly increase your interest income over time.

Example:

  • For a ₹10 lakh FD, A 50 basis point increase can give you an additional ₹5,000 per year. Over three years, this adds up to ₹15,000.
  • For a ₹20 lakh FD, In three years, an additional 50 basis points would increase your income by ₹30,000.

So, as you can see, even a small difference in interest rates can have a big impact on your overall returns. Before making a fixed deposit, it’s wise to research the banks offering the highest interest rates.

Disclaimer: The interest rates mentioned above are subject to change as per the bank’s policies. Investors should verify the latest rates and terms directly from the respective banks before making any financial decisions. Times Bull will not be responsible for any financial investments made, as it is entirely your responsibility.