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

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.

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 

HDFC Bank

Kotak Mahindra Bank 

ICICI Bank 

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.