Several banks such as State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), HDFC Bank, and Canara Bank offer fixed deposits (FDs) with different interest rates ranging for deposits between 7 days to 10 years.
FDs are financial instruments offered by banks and NBFCs (non-banking financial institutions companies) which provide investors better interest rates than regular savings accounts, only if they keep it for a certain period of time.
FD interest rates vary from bank to bank depending on their tenure, amount, and type of depositor. Senior citizens, who are above 60 years, get special interest rates on their fixed deposits, which are often 0.5% above the prevailing interest rates. Thus, it is always advisable to compare them before investing.
Several banks also offer benefits to depositors, such as loan, letter of credit and overdraft against FD certificates, at competitive interest rates.
Here is a list of latest interest rates for domestic retail deposits, typically below Rs 2 crore, offered by SBI, Punjab National Bank, Bank of Baroda, HDFC Bank, and Canara Bank
State Bank of India: Latest FD rates
SBI offers FD rates at 2.9 per cent interest for seven to 45 days of deposit. Term deposits between 46 days to 179 days provide 3.9 per cent interest. Deposits of 180 days to less than one year fetch 4.4 per cent interest. FDs with maturity of between one year and up to two years give depositors 4.9 per cent interest and those maturing in two years to less than three years fetch 5.1 per cent interest. FDs with tenor three years to less than five years give 5.3 per cent interest and term deposits maturing in five years and up to 10 years provide 5.4 per cent interest. These rates are effective from September 10. SBI is also offering senior citizens an additional 50 bps interest rate across all tenors. They (senior citizens) get 3.4-6.2 per cent interest on FDs maturing in 7 days to 10 years.
Punjab National Bank: Latest FD rates
PNB is offering three 3 to 5.25 per cent interest rates on FDs maturing in the range of seven days to 10 years. The bank is offering a three 3 per cent interest rate on 7-45-day FDs, which goes up to 4.5 per cent on deposits of less than one year. PNB is giving a 5.20 per cent interest rate on deposits maturing in one year to up to three years, and 5.25 per cent interest on FDs maturing above five years to 10 years. All these rates are effective from October 1.
HDFC Bank: Latest FD rates
HDFC Bank is offering 2.50 per cent interest on deposits between seven and 29 days, three per cent on deposits maturing in 30 to 90 days. The bank is giving 3.5 per cent interest on FDs maturing in 91 days to six months, 4.4 per cent on those maturing in six months one day to less than one year, and 4.9 per cent on the ones maturing in one year. Five per cent on deposits maturing in two years, 5.15 per cent on FDs maturing in two years to three years. Three years to five years deposits will fetch a 5.30 per cent interest rate, five years to ten years will give 5.50 per cent interest. All these interest rates are effective from October 15.
Bank of Baroda: Latest FD rates
BoB is offering 2.9 per cent interest on deposits with maturities of seven days to 45 days, and 3.9 per cent interest on 46 to 180-day FDs. The bank is giving 4.4 per cent interest on short-term deposits with a maturity period of 181 days and above and less than one year. One-year FDs will fetch 4.9 per cent interest, 5.1 per cent for maturities above one year, and up to three years. Deposits with three and 10-year maturities give 5.3 per cent interest. All these rates are effective from October 3.
Canara Bank: Latest FD rates
Canara Bank is offering FDs with a maturity period of seven to 45 days with a 3 per cent interest rate. For term deposits with maturity duration of 46-90 days, 91 days to 179 days, and 180 days to less than one year, the bank is giving 4, 4.05 and 4.50 per cent interest respectively. FDs maturing in one year to less than three years will fetch a 5.25 per cent interest rate, those with a three to 10 years tenure are giving a 5.35 per cent interest rate. All these rates are effective from October 1.