Fixed Deposits In Top Banks Fetch Up To 5.5% Return Now. Compare Interest Rates Here

Fixed deposits at the country's top lenders currently fetch annual returns to the tune of 2.5-5.5 per cent for retail customers. 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 prefer guaranteed returns in fixed deposits over risky investments through equities and equity-related instruments such as mutual 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, or fixed deposits of up to Rs 2 crore.

Fixed deposits at the country's top lenders currently fetch annual returns to the tune of 2.5-5.5 per cent for retail customers. 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 prefer guaranteed returns in fixed deposits over risky investments through equities and equity-related instruments such as mutual 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, or fixed deposits of up to Rs 2 crore.

Here are the latest FD returns provided by the country's largest banks on retail fixed deposits:

SBI 

HDFC Bank

Kotak Mahindra Bank 

ICICI Bank 

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 by a total of 115 basis points since February, on top of 135 basis points last year. Repo rate is the key interest rate at which the RBI lends money to commercial lenders. 

Most lenders provide slightly higher interest rates to senior citizens compared to other customers.