Looking To Set Up A Fixed Deposit? Compare Top Banks' Interest Rates Here

Most commercial banks provide slightly higher returns to senior citizens than other customers.

Looking To Set Up A Fixed Deposit? Compare Top Banks' Interest Rates Here

Bank FD Rates: Commercial lenders revise their interest rates from time to time

Top lenders in the country currently provide annual returns to the tune of 2.5-5.5 per cent (FDs) to retail fixed depositors. Retail term deposits - or fixed deposits - are investment instruments in which money is locked in for a pre-defined, "fixed" period of time - say a year - for a guaranteed return. This is why many traditional investors, with a rather limited or no risk appetite, prefer modest but guaranteed returns, instead of possible higher returns in case of equities or equity-related funds.  

Commercial lenders - from the likes of State Bank of India (SBI), HDFC Bank and Kotak Mahindra Bank - currently provide a slew of maturity options for retail fixed deposits, which are fixed deposits up to Rs 2 crore. These interest rates are aligned with benchmark rates - set by the Reserve Bank of India (RBI) - from time to time.

This year, the RBI has reduced the repo rate - or the key interest rate at which it lends money to banks - by a total of 115 basis points since February, on top of 135 basis points last year.

This has also forced banks to lower their FD rates. 

Here's a look at the current interest rates on retail fixed deposits provided by the country's largest banks by market capitalisation:

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)

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