Fixed deposit, a popular savings instrument offered by banks and financial companies, assures of a fixed interest rate on customers' investments. Bank FDs give a higher rate of interest than a savings bank accounts as investors make a lump sum deposit in fixed deposit accounts for a specified period of time. FDs are of two types: regular and tax-saving. Partial withdrawal from regular FDs is allowed but tax-saving FDs require customers to lock in their savings for a minimum of five years. Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, among others offer the option of opening fixed deposit accounts. (Also read: Interest Rates Offered On Post Office FD And RD Accounts)
The interest rates on fixed deposits (FDs) are revised regularly depending upon the interest rate cycle set by the Reserve Bank of India (RBI) and the interest varies for various tenors of a fixed deposit. The interest rates for senior citizens are also slightly higher than those for others.
Given below is a comparison of fixed deposit (FD) interest rates paid by SBI, HDFC Bank, ICICI Bank, Bank of India and Kotak Mahindra Bank on deposits below Rs 2 crore:
State Bank of India (SBI)
The following FD interest rates are applicable on deposits below Rs 2 crore, according to sbi.co.in:
HDFC Bank
The following FD interest rates are applicable on deposits below Rs 2 crore from March 7, 2019, according to bank's website- hdfcbank.com:
ICICI Bank
The following FD interest rates are applicable on deposits below Rs 2 crore, according to bank's website- icicibank.com:
Bank of India (BOI)
The following FD interest rates are applicable on deposits below Rs 2 crore, according to bank's website- bankofindia.co.in:
The bank offers 0.50 per cent per annum additional rate of interest over and above card rates to senior citizens for minimum deposits of Rs 5,000 up to Rs.1 crore, according to the bank's website.
Kotak Mahindra Bank
The following FD interest rates are applicable on deposits below Rs 2 crore, according to bank's website - kotak.com:
Small finance banks, on the other hand, often pay higher returns on term deposits - or fixed deposits (FD) - compared to the private and public sector commercial banks. Small finance banks, such as Ujjivan, Equitas, Utkarsh, Jana and Capital, offer interest at the rate of 5-9 per cent on fixed deposits up to Rs 2 crore, according to their websites.
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