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 rate offered by various banks on fixed deposits of one-year, three years and five years.
Bank of Baroda offers the best interest rate for a one-year deposit of less than Rs 3 crore, while Axis Bank offers the least. Bank of Baroda, along with Kotak Mahindra Bank, offers the best rates on a deposit of 7.15% for a three-year period. ICICI Bank, State Bank of India and HDFC Bank offer 7% on a three-year deposit.
Axis bank offers the best FD rates of 7.10% on a five-year deposit. Punjab National Bank, on the other hand, offers the lowest rate of 6.55% on a five-year deposit.
Interest rates for senior citizens are higher than those for the general public. General rates vary depending on the deposit amount and the lock-in period.
Interest on fixed deposits without premature withdrawal option tends to be higher than the one with withdrawal facility. The difference is that a fixed term deposit will not allow withdrawal facility for depositors before completion of maturity period. The interests 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.
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