Want To Open A Fixed Deposit Account? Top Banks Pay These Returns Now

Fixed Deposit Interest Rate: Commercial banks provide a variety of maturity options for fixed deposits, starting from seven days to 10 years.

Want To Open A Fixed Deposit Account? Top Banks Pay These Returns Now

Interest Rate: Commercial lenders today provide a range of maturity options

Fixed Deposit Interest Rate: Fixed deposits have been the financial instrument of choice for long among investors with a rather low risk appetite. These deposits, also known as term deposits, provide fixed, guaranteed returns for funds held in a commercial bank for a pre-defined period of time. Currently, the country's top banks provide annual returns to the tune of 2.5-6.3 per cent on retail fixed deposits, or fixed deposits up to Rs 2 crore. Commercial banks, from the likes of state-run SBI - the country's largest lender by assets - to private sector lender HDFC Bank, its largest in terms of market value, provide a variety of maturity options for fixed deposits, starting from as short as seven days to as long as 10 years.

For example, SBI currently provides eight maturity options, paying returns of 2.9-5.4 per cent to the general public, and 3.4-6.2 per cent to senior citizens.  

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

SBI 

Maturity PeriodInterest Rate With Effect From May 27
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 years5.1%5.6%
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 August 26
Seven to 14 days2.50%
15 to 30 days2.50%
31 to 45 days3%
46 to 90 days3%
91 to 120 days4%
121 to 179 days4%
180 days4.60%
181 to 269 days4.70%
270 days4.70%
271 to 363 days4.70%
364 days4.75%
365 to 389 days4.75%
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 August 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 days4%4.50%
121 to 184 days4%4.50%
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 4.50%5%
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 years5.10%5.60%
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)

All of these commercial banks offer slightly higher returns to senior citizen customers compared to other depositors.

Earlier this 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, and said it would maintain an "accommodative" stance for as long as necessary to revive growth and mitigate the impact of COVID-19 while ensuring inflation remains within target.

The central bank has 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.