Small Saving Schemes Interest Rates Hiked But What Do Banks Pay On Fixed Deposits?
Even as the government recently hiked small saving schemes' interest rates for the October-December quarter, bank fixed deposit or FD interest rates have so far not been hiked. Rise in interest rates of small saving schemes would nudge banks to increase deposit rates in third quarter of 2019, albeit less than the magnitude of revision in small saving schemes' interest rates, said rating agency ICRA. Most leading banks revised their FD interest rates around the central bank's August policy review meet.
SBI or State Bank of India, the largest lender of the country, last revised its FD interest rates on July 30. Punjab National Bank (PNB) last revised its fixed deposit interest rates on August 1. Private lenders HDFC Bank and ICICI Bank last revised their FD interest rates on August 6 and August 14 respectively.
On deposits below Rs 1 crore, SBI FD interest rates for the general public range from 5.75 per cent to 6.85 per cent, PNB FD interest rates range from 5.70 to 6.25 per cent, HDFC Bank FD interest rates range from 3.5 per cent to 6 per cent, and ICICI Bank FD interest rates range from 4 per cent to 7.25 per cent.
Given below are fixed deposit or FD interest rates of SBI, PNB, HDFC Bank and ICICI Bank:
State Bank of India (SBI)
| Interest rate in per cent with effect from July 30, 2018 | ||
|---|---|---|
| Maturity period | General public | Senior citizens |
| 7 days to 45 days | 5.75 | 6.25 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.35 | 6.85 |
| 211 days to less than 1 year | 6.4 | 6.9 |
| 1 year to less than 2 year | 6.7 | 7.2 |
| 2 years to less than 3 years | 6.75 | 7.25 |
| 3 years to less than 5 years | 6.8 | 7.3 |
| 5 years and up to 10 years | 6.85 | 7.35 |
| (Source: sbi.co.in) | ||
HDFC Bank
| Interest rate in per cent with effect from August 6, 2018 | ||
|---|---|---|
| Maturity period | General public | Senior citizens |
| 7 - 14 days | 3.50 | 4.00 |
| 15 - 29 days | 4.25 | 4.75 |
| 30 - 45 days | 5.75 | 6.25 |
| 46 - 60 days | 6.25 | 6.75 |
| 61 - 90 days | 6.25 | 6.75 |
| 91 days - 6 months | 6.25 | 6.75 |
| 6 mnths 1 day- 6 mnths 3 days | 6.75 | 7.25 |
| 6 mnths 4 days | 6.75 | 7.25 |
| 6 mnths 5 days- 9 mnths | 6.75 | 7.25 |
| 9 mnths 1 day- 9 mnths 3 days | 7.00 | 7.50 |
| 9 mnths 4 days | 7.00 | 7.50 |
| 9 months 5 days - 9 months 15 days | 7.00 | 7.50 |
| 9 months 16 days | 7.00 | 7.50 |
| 9 months 17 days < 1 Year | 7.00 | 7.50 |
| 1 Year | 7.25 | 7.75 |
| 1 year 1 day - 1 year 3 days | 7.25 | 7.75 |
| 1 year 4 days | 7.25 | 7.75 |
| 1 year 5 days - 1 Year 15 Days | 7.25 | 7.75 |
| 1 Year 16 days | 7.25 | 7.75 |
| 1 year 17 days - 2 Years | 7.25 | 7.75 |
| 2 years 1day - 2 Years 15 days | 7.10 | 7.60 |
| 2 Years 16 days | 7.10 | 7.60 |
| 2 years 17 days - 3 Years | 7.10 | 7.60 |
| 3 years 1day - 5 years | 7.10 | 7.60 |
| 5 Years 1 Day - 8 Years | 6.00 | 6.50 |
| 8 Years 1 Day - 10 Years | 6.00 | 6.50 |
| (Source: hdfcbank.com) | ||
ICICI Bank
| Interest rate in per cent with effect from August 14, 2018 | ||
|---|---|---|
| Maturity period | General public | Senior citizens |
| 7 days to 14 days | 4 | 4.5 |
| 15 days to 29 days | 4.25 | 4.75 |
| 30 days to 45 days | 5.5 | 6 |
| 46 days to 60 days | 5.75 | 6.25 |
| 61 days to 90 days | 6 | 6.5 |
| 91 days to 120 days | 6 | 6.5 |
| 121 days to 184 days | 6 | 6.5 |
| 185 days to 289 days | 6.5 | 7 |
| 290 days to less than 1 year | 6.75 | 7.25 |
| 1 year to 389 days | 6.75 | 7.25 |
| 390 days to 2 years | 7 | 7.5 |
| 2 years 1 day upto 5 years | 7.25 | 7.75 |
| 5 years 1 day upto 10 years | 7 | 7.5 |
| (Source: icicibank.com) | ||
Punjab National Bank (Below Rs. 1 crore)
PNB pays the following interest rates with effect from August 1, 2018, according to its website - pnbindia.in:
| Sl. No | Period | ROI (% p.a.) | For Senior Citizen ROI (% p.a.) |
|---|---|---|---|
| 1 | 7 to 14 days | 5.7 | 6.2 |
| 2 | 15 to 29 days | 5.7 | 6.2 |
| 3 | 30 to 45 days | 5.7 | 6.2 |
| 4 | 46 to 90 days | 6.35 | 6.85 |
| 5 | 91 to 179 days | 6.35 | 6.85 |
| 6 | 180 days to 270 Days | 6.35 | 6.85 |
| 7 | 271 days to less than 1 year | 6.35 | 6.85 |
| 8 | 1 year | 6.75 | 7.25 |
| 9 | above 1 year & upto 3 years | 6.75 | 7.25 |
| 10 | above 3 year & upto 5 years | 6.25 | 6.75 |
| 11 | above 5 years & upto 10 years | 6.25 | 6.75 |
(from pnbindia.in)
Small finance banks, however, offer higher FD interest rates than mainstream banks.