Yes Bank, Canara Bank To PNB — Check Best FD Rates Here
The highest interest rate offered on deposits for a one-year period is 7.75% by Yes Bank, while Bank of Baroda and Canara Bank offer the second highest at 6.85%.
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 with one year, three years and five years of tenor.
The highest interest rate offered on deposits for a one-year period is 7.75% by Yes Bank, while Bank of Baroda and Canara Bank offer the second highest at 6.85%.
ICICI Bank Ltd., 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 6.8% for a one-year period. Kotak Mahindra Bank Ltd. offers 6.5%.
In the three-year category, Canara Bank offers the best interest rate of 7.3%. Yes Bank offers 7.25%, 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.
In the five-year category, Canara Bank offer the highest interest rate at 7.4%. The second-highest offering for this time frame is by Yes Bank, which offers 7.25%. HDFC Bank, ICICI Bank and Kotak Mahindra Bank offer 7% interest. PNB offers 6.8% interest and the lowest offering is by Bank of Baroda at 6.5%.
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.
