A fixed deposit (FD) account, also called as term deposit account, is an interest-bearing account that has a specified date of maturity. The funds in these accounts are held for a fixed term, and guarantee a return of principal. This means, the interest rate remains unchanged for the nominated term. So the account holders exactly know the worth of his/her investment. The fixed deposits (FDs) usually offer higher interest rates to senior citizens as compared to those for the general public.
A fixed deposit (FD) account, also called as term deposit account, is an interest-bearing account that has a specified date of maturity. The funds in these accounts are held for a fixed term, and guarantee a return of principal. This means, the interest rate remains unchanged for the nominated term. So the account holders exactly know the worth of his/her investment. The fixed deposits (FDs) usually offer higher interest rates to senior citizens as compared to those for the general public.
Fixed deposit (FD) accounts offer higher interest rates than savings accounts. Banks keep on revising their fixed deposit interest rates from time-to-time. On a four-year fixed deposit below Rs. 1 crore for general public, SBI currently pays an interest rate of 6.8 per cent. While HDFC Bank offers 7.10 per cent, ICICI Bank pays 7.25 per cent and Kotak Mahindra Bank offers 7.10% interest for the same tenor and amount.
Here are fixed deposit or FD interest rates offered by SBI, HDFC Bank, ICICI Bank and Kotak Mahindra Bank on deposits below Rs. 1 crore
State Bank of India (SBI)
HDFC Bank
ICICI Bank
Kotak Mahindra Bank:
Meanwhile, small finance banks offer much higher interest rates on fixed deposit or FD accounts than larger peers like State Bank of India (SBI), HDFC Bank and ICICI Bank.
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