FD Interest Rates: As depositors seek to maximize their returns, they often compare fixed deposit (FD) interest rates offered by various banks before committing their funds. Typically, banks provide higher interest rates for longer-term deposits, encouraging customers to lock in their funds for extended periods. However, significant differences in interest rates between banks can also influence depositors to choose a bank where they may not already hold an account.
Interest Rates from Major Banks
Here is a comparison of the latest interest rates on 3-year fixed deposits offered by some of the leading banks in India:
- HDFC Bank: As the largest private lender, HDFC Bank offers an interest rate of 7 percent per annum on deposits with a three-year tenure. For senior citizens, the rate is slightly higher at 7.5 percent. Notably, the bank’s highest interest rate of 7.4 percent is offered for deposits with a tenure of 4 years and 7 months. These rates have been in effect since July 24, 2024.
- ICICI Bank: ICICI Bank matches HDFC Bank’s offering with an interest rate of 7 percent per annum for regular depositors and 7.5 percent for senior citizens on 3-year FDs. The bank offers its highest interest rate of 7.25 percent for deposits with tenures ranging from 15 months to 2 years. The updated rates became effective on August 10, 2024.
- State Bank of India (SBI): The state-run SBI offers an interest rate of 6.75 percent for regular depositors and 7.25 percent for senior citizens on three-year deposits. For deposits with a tenure of 2 to 3 years, the interest rate is 7 percent per annum. These rates have been applicable since June 15, 2024.
- Bank of Baroda: Bank of Baroda offers the highest interest rate in this comparison, with 7.15 percent for regular depositors and 7.65 percent for senior citizens on 3-year FDs. These rates were implemented on July 15, 2024.
- Kotak Mahindra Bank: Kotak Mahindra Bank provides a 7 percent interest rate for regular depositors and 7.6 percent for senior citizens on deposits with a three-year tenure.
Interest Rate Comparison for 3-Year FDs
| Bank Name | Interest Rate for Regular Citizens (%) | Interest Rate for Senior Citizens (%) |
|---|---|---|
| HDFC Bank | 7.0 | 7.5 |
| ICICI Bank | 7.0 | 7.5 |
| State Bank of India | 6.75 | 7.25 |
| Bank of Baroda | 7.15 | 7.65 |
| Kotak Mahindra Bank | 7.0 | 7.6 |
Conclusion
While HDFC Bank and ICICI Bank offer competitive rates of 7 percent for regular depositors and 7.5 percent for senior citizens on 3-year fixed deposits, Bank of Baroda stands out with slightly higher rates, making it an attractive option for those seeking better returns. As interest rates can significantly impact the returns on long-term deposits, it is essential for depositors to compare offerings from various banks to make informed decisions.
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