Retail deposits, or fixed deposits of less than Rs 1 crore, have always been an attractive savings option to meet short- to medium-term financial goals. The volatility in the financial markets along with benign inflation - which basically pushes up the real rate of interest - has also renewed customer interest in this savings option.
But while the leading banks such as ICICI Bank and HDFC Bank don't go higher than 7.5%, a few smaller players are offering interest rates above 8% on select tenors, going up to 9%. On the other hand, SBI, the largest bank in the country, offers interest rates ranging from 5.75% to 6.85%.
So here's a look at some of the most attractive FD interest rates currently on offer:
Senior citizens get an additional 50 basis points interest over the fixed deposit rates mentioned above. Also keep in mind that the annualised yield - the effective annual rate of return taking into account the effect of compounding interest - will be higher for the longer tenors.
Edited by Sushmita Agarwal