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
| Maturity Period | Interest Rate With Effect From September 10 | |
|---|---|---|
| Public | Senior citizen | |
| Seven days to 45 days | 2.9% | 3.4% |
| 46 days to 179 days | 3.9% | 4.4% |
| 180 days to 210 days | 4.4% | 4.9% |
| 211 days to less than one year | 4.4% | 4.9% |
| One year to less than two years | 4.9% | 5.4% |
| Two years to less than three years | 5.1% | 5.6% |
| Three years to less than five years | 5.3% | 5.8% |
| Five years and up to 10 years | 5.4% | 6.2% |
| (Source: sbi.co.in) | ||
HDFC Bank
| Maturity Period | Interest Rate (With Effect From August 25) | |
|---|---|---|
| Public | Senior citizen | |
| Seven days to 14 days | 2.50% | 3.00% |
| 15 days to 29 days | 2.50% | 3.00% |
| 30 days to 45 days | 3.00% | 3.50% |
| 46 days to 60 days | 3.00% | 3.50% |
| 61 days to 90 days | 3.00% | 3.50% |
| 91 days to six months | 3.50% | 4.00% |
| Six months one day to nine months | 4.40% | 4.90% |
| Nine months one day to less than one year | 4.40% | 4.90% |
| One year | 5.10% | 5.60% |
| One year one day to two years | 5.10% | 5.60% |
| Two years one day to three years | 5.15% | 5.65% |
| Three years one day to five years | 5.30% | 5.80% |
| Five years one day to 10 years | 5.50% | 6.25% |
| (Source: hdfcbank.com) | ||
Kotak Mahindra Bank
| Maturity Period | Interest Rate With Effect From September 23 | |
|---|---|---|
| Seven to 14 days | 2.50% | |
| 15 to 30 days | 2.50% | |
| 31 to 45 days | 3% | |
| 46 to 90 days | 3% | |
| 91 to 120 days | 3.90% | |
| 121 to 179 days | 3.90% | |
| 180 days | 4.60% | |
| 181 to 269 days | 4.60% | |
| 270 days | 4.60% | |
| 271 to 363 days | 4.60% | |
| 364 days | 4.60% | |
| 365 to 389 days | 4.70% | |
| 390 days (12 months and 25 days) | 5.10% | |
| 391 days to less than 23 months | 5.10% | |
| 23 months | 5.10% | |
| 23 months and one day to less than two years | 5.10% | |
| Two years to less than three years | 4.90% | |
| Three years and above but less than four years | 4.90% | |
| Four years and above but less than five years | 4.75% | |
| Five years and above up to 10 years | 4.50% | |
| (Source: kotak.com) | ||
ICICI Bank
| Lock-In | Interest Rate With Effect From September 7 | |
|---|---|---|
| Public | Senior citizen | |
| Seven to 14 days | 2.50% | 3% |
| 15 to 29 days | 2.50% | 3% |
| 30 to 45 days | 3% | 3.50% |
| 46 to 60 days | 3% | 3.50% |
| 61 to 90 days | 3% | 3.50% |
| 91 to 120 days | 3.50% | 4% |
| 121 to 184 days | 3.50% | 4% |
| 185 to 210 days | 4.40% | 4.90% |
| 211 to 270 days | 4.40% | 4.90% |
| 271 to 289 days | 4.40% | 4.90% |
| 290 days to less than one year | 4.40% | 4.90% |
| One year to 389 days | 5% | 5.50% |
| 390 days to less than 18 months | 5% | 5.50% |
| 18 months and one day to two years | 5.10% | 5.60% |
| Two years and one day to three years | 5.15% | 5.65% |
| Three years and one day to five years | 5.35% | 5.85% |
| Five years and one day to 10 years | 5.50% | 6.30% |
| Five years tax-saver FD (maximum Rs 1.50 lakh) | 5.35% | 5.85% |
| (Source: icicibank.com) | ||
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.
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