Top lenders in the country currently provide annual returns to the tune of 2.5-5.5 per cent (FDs) to retail fixed depositors. Retail term deposits - or 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, with a rather limited or no risk appetite, prefer modest but guaranteed returns, instead of possible higher returns in case of equities or equity-related 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, which are fixed deposits up to Rs 2 crore. 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 - or the key interest rate at which it lends money to banks - by a total of 115 basis points since February, on top of 135 basis points last year.
This has also forced banks to lower their FD rates.
Here's a look at the current interest rates on retail fixed deposits provided by the country's largest banks by market capitalisation:
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) | ||
Most lenders provide slightly higher interest rates to senior citizens compared to other customers. For example, the country's largest bank by assets, SBI, pays annual returns to the tune of 3.4-6.2 per cent on fixed deposits up to Rs 2 crore to senior citizens, and 2.9-5.4 per cent to other depositors
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