FD Rates: Bandhan Bank offers 7.45%, IDFC First 7.25% — How much more can you earn than SBI?

Fixed deposit (FD) investors looking for higher returns may find a significant gap between the rates offered by large banks and some private lenders. As per the latest FD rate data, Bandhan Bank offers a maximum regular-citizen rate of 7.45%, while IDFC First Bank offers 7.25%. In comparison, SBI’s highest regular FD rate is 6.45%.

The difference may look small in percentage terms, but it can add up to thousands of rupees as the deposit size increases.

Bandhan, IDFC First offer higher rates than SBI

Bandhan Bank’s highest regular FD rate of 7.45% is available for a 2-year tenure, while IDFC First Bank offers 7.25% for a 3-year deposit. SBI’s highest regular rate of 6.45% is applicable to a 444-day tenure.

Bandhan Bank’s rate is 1 percentage point higher than SBI’s top rate, while IDFC First Bank’s rate is 0.80 percentage point higher.

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How much more can you earn?

For a simple illustration, consider a deposit of ₹5 lakh and calculate the annual interest based on the quoted rates. This is only a rate comparison; actual FD maturity amounts will depend on the tenure, compounding frequency and applicable bank rules.

At these rates, a ₹5 lakh deposit would generate ₹5,000 more in annual interest at Bandhan Bank than at SBI, while IDFC First Bank would generate ₹4,000 more.

For a ₹10 lakh deposit, the annual interest difference rises to ₹10,000 between Bandhan Bank and SBI and ₹8,000 between IDFC First Bank and SBI.

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Rate is not the only factor

Investors should not choose an FD solely on the basis of the highest headline rate. The applicable tenure is equally important, particularly because the three rates above apply to different maturities.

Investors should also check premature withdrawal rules, payout options, taxation and the bank’s deposit insurance coverage. Under the Deposit Insurance and Credit Guarantee Corporation (DICGC), eligible deposits are insured up to ₹5 lakh per depositor per bank, including principal and interest.

Therefore, before moving money for a slightly higher FD rate, investors should compare the tenure, effective maturity value and overall risk rather than looking at the interest rate alone.