Fixed Deposit Interest Rates: Top Banks Pay These Annual Returns Now

Bank Fixed Deposit (FD) Rates: Commercial lenders such as State Bank of India (SBI) revise the interest rates on fixed deposits from time to time.

Fixed Deposit Interest Rates: Top Banks Pay These Annual Returns Now

Commercial banks revised FD interest rates from time to time

Fixed Deposit Interest Rate: India's largest lenders currently provide annual returns to the tune of 2.50-5.50 per cent on retail fixed deposits (FDs) to their customers. Commercial lenders from the likes of State Bank of India, HDFC Bank and Kotak Mahindra Bank revise the interest rates on fixed deposits - also known as term deposits - from time to time, adjusting them according to benchmark rates. FDs have been the financial instrument of choice for more conservative investors with a generally low risk-appetite.

Most lenders provide slightly higher interest rates to senior citizens compared to other customers. For example, the country's largest bank by assets, SBI, pays annual returns to the tune of 3.4-6.2 per cent on fixed deposits up to Rs 2 crore to senior citizens, and 2.9-5.4 per cent to other depositors.

Here are the latest interest rates applicable to retail fixed deposits at the country's top banks:

SBI 

Maturity PeriodInterest Rate With Effect From September 10
PublicSenior citizen
Seven days to 45 days2.9%3.4%
46 days to 179 days3.9%4.4%
180 days to 210 days4.4%4.9%
211 days to less than one year4.4%4.9%
One year to less than two years4.9%5.4%
Two years to less than three years5.1%5.6%
Three years to less than five years5.3%5.8%
Five years and up to 10 years5.4%6.2%
(Source: sbi.co.in)

HDFC Bank

Maturity PeriodInterest Rate (With Effect From August 25)
PublicSenior citizen
Seven days to 14 days2.50%    3.00%
15 days to 29 days2.50%  3.00%
30 days to 45 days3.00%    3.50%
46 days to 60 days3.00%  3.50%
61 days to 90 days3.00%  3.50%
91 days to six months3.50%    4.00%
Six months one day to nine months4.40%   4.90%
Nine months one day to less than one year4.40%    4.90%
One year5.10%   5.60%    
One year one day to two years5.10%   5.60%
Two years one day to three years5.15%   5.65%
Three years one day to five years5.30%   5.80%
Five years one day to 10 years5.50%   6.25%
(Source: hdfcbank.com)

Kotak Mahindra Bank 

Maturity PeriodInterest Rate With Effect From September 23
Seven to 14 days2.50%
15 to 30 days2.50%
31 to 45 days3%
46 to 90 days3%
91 to 120 days3.90%
121 to 179 days3.90%
180 days4.60%
181 to 269 days4.60%
270 days4.60%
271 to 363 days4.60%
364 days4.60%
365 to 389 days4.70%
390 days (12 months and 25 days)5.10%
391 days to less than 23 months5.10%
23 months5.10%
23 months and one day to less than two years5.10%
Two years to less than three years4.90%
Three years and above but less than four years4.90%
Four years and above but less than five years4.75%
Five years and above up to 10 years4.50%
(Source: kotak.com)

ICICI Bank 

Lock-InInterest Rate With Effect From September 7
PublicSenior citizen
Seven to 14 days2.50%3%
15 to 29 days2.50%3%
30 to 45 days3%3.50%
46 to 60 days3%3.50%
61 to 90 days3%3.50%
91 to 120 days3.50%4%
121 to 184 days3.50%4%
185 to 210 days4.40%4.90%
211 to 270 days4.40%4.90%
271 to 289 days4.40%4.90%
290 days to less than one year 4.40%4.90%
One year to 389 days5%5.50%
390 days to less than 18 months5%5.50%
18 months and one day to two years5.10%5.60%
Two years and one day to three years5.15%5.65%
Three years and one day to five years5.35%5.85%
Five years and one day to 10 years5.50%6.30%
Five years tax-saver FD (maximum Rs 1.50 lakh)5.35%5.85%
(Source: icicibank.com)

Last month, the Reserve Bank of India (RBI) held the repo rate - or the key interest rate at which it lends short-term funds to commercial banks - steady at 4 per cent after a scheduled review, and said it would maintain an "accommodative" stance for as long as necessary to revive growth and mitigate the impact of the coronavirus pandemic while ensuring inflation remains within target.

The central bank had already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50 per cent.