Yes Bank, Canara Bank Revise Fixed Deposit Interest Rates— Check The Best FD Rates Here

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 rates offered by various banks on fixed deposits of one-year, three years and five years.

A few banks have hiked their interest rates ahead of the central bank's monetary policy meeting this week. Canara Bank is now offering the same rate of 6.85% offered by Bank of Baroda on FDs of one-year duration. The interest rates have reportedly lowered by up to 25 basis points for some tenures. The interest rate on FDs with a 1.5-year tenure has been reduced from 8% to 7.75%, reflecting a 25 bps decrease in the interest offering. Punjab National Bank follows closely with an interest rate of 6.80%. The lowest rate of interest in the one-year period is 6.00%, offered by Axis Bank.

For the three-year lock-in period, the highest rates are offered by banks that revised their rates ahead of the repo rate announcement. Canara Bank and Yes Bank are offering 7.30% and 7.25%, respectively. The lowest interest rate of 7.00% is offered by HDFC, ICICI, and Punjab National Bank.

The five-year deposit has a similar scenario with Canara Bank offering the highest rate of 7.40% and Yes Bank offering a 7.25% interest rate. At 6.50%, Punjab National Bank offers the lowest.

Interest rates for fixed deposits are usually less than 8.00%, but the 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 the completion of the maturity period.

The term deposit interest rates 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.