Interest rates on fixed deposits or term deposits are revised by commercial banks from time to time. Interest rate on an FD - which is a fixed income instrument - varies from one bank to another, depending upon factors such as MCLR (marginal cost of funds-based lending rate), maturity period or term and the deposit amount. Major public sector banks such as State Bank of India and Punjab National Bank pay interest rates to the tune of 5.7-6.85 per cent per annum on domestic fixed deposits up to Rs 1 crore, while their private sector peers like HDFC Bank and ICICI Bank pay anywhere between 3.5 per cent and 7.3 per cent.
Here's a comparison of interest rates on domestic fixed deposits below Rs 1 crore paid by some of the top commercial banks in the country:
State Bank of India (SBI)
Punjab National Bank (PNB)
HDFC Bank
ICICI Bank
Axis Bank
Most banks offer slightly better returns to senior citizens - those above 60 years of age - compared to the general public.
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