Even in this age of investor frenzy in equity markets and mutual funds, the significance of Fixed Deposits (FDs) is lost on none. These instruments do not suffer from fluctuations in the equity markets. Moreover, the interest rate is at its peak now in India, which means the banks are offering the highest interest rates in recent years.
Recently, more and more banks have swung into offering the highest interest rates on FDs with a fixed tenure, which are fast gaining popularity. In this interest rate climate, let’s find out the interest rates two banks – young and old – are offering on retail FDs. The old one is Karnataka Bank which is more than a century old and is based in Bangalore. The new one is Bandhan Bank, which is based in Kolkata and is 9 years old.
Karnataka Bank, Bandhan Bank FD rates
The peak rate in FDs offered by Karnataka Bank is 8% for senior citizens and 7.5% for general public (for those under 60 years). This FD has a term of 375 days. This is for deposits below Rs 3 crore.
The peak rate offered by Bandhan Bank is 8.35%. It is paid to senior citizens for a tenure of 500 days. This FD pays 7.85% interest rate to general customers.
1-year FDs
Bandhan Bank offers an interest rate of 7.25% for non-senior citizens and 7.75% to senior citizens for all FDs carrying tenure between 1 year and 499 days. On the other hand, Karnataka Bank offers 7.35% to those below 60 years and 7.85% to senior citizens on all FDs having tenure of 1 year to 2 years.
3-year FDs
Bandhan Bank offers 7.25% interest to those below 60 years on 3-year FDs. For senior citizens, the rate rises to 7.75%. Karnataka Bank offers 6.50% interest to general customers for any FD between 2 years to 5 years. It becomes 7% for senior citizens.
5-year FDs
Bandhan Bank pays 5.85% interest to general customers and 6.60% to senior citizens for any FD between 5 years and 10 years. For Karnataka Bank, the interest rate on 5-year FD is the same as 3-year FDs.
Fixed deposits offer the comfort of predictable and stable cash flows which is important for a large segment of India’s population. Let’s see what Bandhan Bank and Karnataka Bank are offering on their fixed deposit schemes. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
