Axis, HDFC Bank To Bank Of Baroda — Check The Best FD Rates Here

Fixed deposit rates vary across banks, and also depend on the amounts and lock-in periods. Rates offered by top banks in India have some variations based on the time period.

Here are the interest rates offered by various banks on fixed deposits of one-year, three years and five years.

Bank of Baroda offers the best rates for investors looking to deposit their money for a one year period. Offering 6.85% interest, Punjab National Bank follows closely with 6.80%. The least interest is offered by Axis Bank for the one year period with 6.00% interest.

For the three-year deposit, Kotak Mahindra Ltd. and Bank of Baroda offer the highest rate of 7.15%. Axis Bank Ltd. offers the next best rates with 7.10% for a three-year deposit. The lowest rates are offered by ICICI Bank Ltd. and HDFC Bank at 7.00% interest for the deposit.

For the five-year deposit, Axis Bank offered the best FD rates at 7.10%. The lowest offering in this time frame is from Punjab National Bank as they offer 6.55% for the five-year deposit. HDFC, Kotak and ICICI Bank offer 7.00% interest over this period.

The interest rates for fixed deposits are usually less than 8.00%, but the interest rates on fixed deposits without premature withdrawal option tends to be higher than the one with withdrawal facility. These are also known as non-callable deposits. The difference is that a fixed term deposit will not allow withdrawal facility for depositors before completion of maturity period.

The term deposit interest rates are higher due to the lock-in period that these come with. It is important to have clarity on the time period one wishes to park one's money in for a fixed deposit.