Investors often turn to fixed deposits (FDs) because they are considered safe and offer predictable, guaranteed returns. In India, many prefer FDs in public sector banks (PSU), which are viewed as more secure and provide attractive interest rates.
FDs are important for financial planning and serve as a key diversification tool for one's portfolio. Usually, FD returns depend on the tenure of the deposit. Most banks follow a standard pattern for FDs under Rs 3 crore, offering different interest rates based on how long the money is deposited. Typically, the maximum tenure is up to 10 years. For deposits longer than 10 years, interest rates and rules can vary.
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State Bank of India is one of the most trusted banks in India for opening fixed deposits, savings accounts, and availing other banking services. Currently, it offers up to 6.40% returns on certain FDs if the amount is under Rs 3 crore.
According to the bank's website, deposits from 1 year to less than 2 years earn 6.25%; 2 to less than 3 years earn 6.40%, and 3 to less than 5 years earn 6.30%. These rates are applicable for regular citizens as senior citizens are offered slightly higher returns. Other top PSU lenders are also offering similar returns on FDs, with some offering special deals on select tenures.
FD Rates of Top Banks:
SBI
- 1 Year to less than 2 years - 6.25%
- 2 Years to less than 3 years - 6.40%
- 3 Years to less than 5 years - 6.30%
Bank of Baroda:
- 1 Year - 6.10%
- Above 3 Years and up to 5 Years - 6.30%
- Above 5 Years and up to 10 Years - 6.00%
Canara Bank
- 1 Year & above to 1 Year 3 months Only (Except 444 days) - 6.25%
- 3 Years & above to less than 5 Years - 6.25%
- 5 Years & above to 10 Years - 6.25%
Bank of Maharashtra:
- 365 days/ 1 Year - 6.20%
- Above 3 Years to 5 years - 5.00%
- Above 5 Years - 5.00%
Bank of India:
- 1 Year - 6.25%
- 3 Years to less than 5 Years - 6.25%
- 5 Years to 10 Years - 6.00%
- 450 days - 6.60%
Punjab National Bank
- 1 Year - 6.25%
- 1,204 Days - 6.05%
- 5 Years to 10 Years - 6.00%
Other PSU lenders such as Union Bank of India, Indian Bank, Central Bank of India, among others also offer similar rates.
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