RBL Bank Offers Highest FD Interest Rate For 500-Day Deposits
RBL's one-year offering is 6.05% for the public, while the offering for senior citizens is 6.55%.
RBL Bank Ltd. has hiked its fixed deposit interest rate offering from Dec. 15, according to the private sector bank's website.
The revised rates offer the highest interest rates for deposits made for 500 days. The highest rate of 8.5% is offered to senior citizens who deposit less than Rs 1 crore, it stated.
The second highest offering is for the 15–16-month period where the rate offered is 7.8%. Senior citizens are offered 8.3% for the same time frame, 16–18 months and two years as well.
RBL's one-year offering is 6.05% for the public, while the offering for senior citizens is 6.55%.
The highest interest rate offered on deposits for a one-year period is 7.25% by Yes Bank, while Bank of Baroda and Canara Bank offer the second highest at 6.85%. HDFC Bank Ltd. and Axis Bank Ltd. offer the lowest interest rates on FDs of one year. Punjab National Bank offers 6.8% and ICICI Bank Ltd. offers 6.7% for a one-year period. Kotak Mahindra Bank Ltd. offers 6.5%.
The three-year rate offered by RBL is 7.1%. To compare with peers, Yes Bank offers the best interest rate of 7.75%. Canara Bank offers 7.3%, while Kotak Mahindra Bank and Bank of Baroda offer 7.15% on three-year deposits. The lowest rate of 7% is offered by HDFC Bank, ICICI Bank and PNB.
Interest rates on fixed deposits are usually less than 8%, but interest rates on fixed deposits without a premature withdrawal option tend to be higher than the ones with a withdrawal facility. These are also known as non-callable deposits. The difference is that a fixed-term deposit will not allow a withdrawal facility for depositors before completion of the maturity period.
Term deposit interest rates are higher due to the lock-in period that these come with. Before deciding to park one's money in a fixed deposit, it is important to have clarity on the time period.
