Bank FDs or bank fixed deposits have been a favourite instrument to park surplus money for many investors. Traditionally a choice of investors with a low-risk appetite, bank FDs offer a safe source of investment unlike their equity-related peers. Market-linked instruments such as stocks and equity funds may be attractive for many but they are unable to offer fixed returns, say financial experts. Bank FDs or bank fixed deposits, on the other hand, guarantee a fixed interest rate irrespective of market uncertainties. That is why an investor looking to play safe generally prefers an FD over other instruments.
When it comes to FDs, many banks offer marginally better rates to senior citizen investors. "Although the bank FDs offer a higher rate to senior citizen, it is only marginal higher than their base rate. However, for a senior citizen, it is still advisable to invest in such risk-free instruments rather than taking exposure on market-related return," Dinesh Rohira, founder and CEO of 5nance.com, an online investment platform, told NDTV.
But what are the latest bank FD interest rates offered by banks?
Indian Overseas Bank is the latest public sector bank bank to revise its fixed deposit rates on term deposits. With effect from April 5, Indian Overseas Bank fixed deposits less than Rs 1 crore with a tenure of one week to five years will earn an interest rate between 4.5 per cent and 6.8 per cent. Senior citizens will continue to receive an additional rate of 0.50 per cent, Indian Overseas Bank said in a press release earlier this week.
Here are different bank FD rates offered by Indian Overseas Bank and some of its larger peers:
Indian Overseas Bank fixed deposit interest rates, as given in its press release dated April 5:
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