The importance of fixed deposits (FD) in banks will never fade simply because of the predictable and stable nature of the returns they offer. Both the vast number of retirees as well as a larger number of risk-averse people feel comfortable in depositing their money only in FDs.
Let’s see what Kotak Bank and Bandhan Bank, two of the new age private sector banks, interest rates they offer to the general customers and senior citizens on 1-year, 3-year and 5-year FDs.
1-year FD
Bandhan Bank is one of the few banks that offers more than 8% to both general customers and senior citizens on FDs. It offers a rate of 8.05% for non-senior citizens and 8.55% for senior citizens on retail FDs (deposits up to Rs 3 crore). Therefore, if a senior citizen deposits Rs 1 lakh for 1 year, Bandhan Bank will pay him/her Rs 1,08,828.
Kotak Bank’s rates are a bit low in comparison. It pays 7.10% for general customers 1-year FDs and 7.60% for senior citizens. If a senior citizen deposits R 1 lakh for 1 year in Kotak Bank, he/she gets back Rs 1,07,819.
3-year FD
For FD maturing in 3 years, Bandhan Bank offers 7.25% for non-senior citizens and 7.75% for those above 60 years.
Kotak Bank’s general customers get 7.0% and senior citizens get 7.6% on FDs maturing in 3 years.
5-year FD
General customers of Bandhan Bank get 5.85% interest on FD for 5 years, while senior citizens get 6.60%.
However, it is on 5-year FDs that Kotak Bank customers have a slight edge. Kotak Bank pays 6.2% to general customers and 6.7% to senior citizens on this category of FDs.
All the above rates are applicable to fixed deposits that are less than Rs 3 crore. The rates for Bandhan Bank are effective from September 13, 2024. The rates of Kotak Bank have been effective from June 14, 2024.
Fixed term FDs
Bandhan Bank has only one fixed term FD — that of 1-year duration. As stated above it offers 8.05% to egenral customers and 8.55% for those above 60.
On FD of 180 days Kotak Bank offers 7.0% and 7.5% (for general customers and senior citizens respectively), for FDs of 270 days 6.0% and 6.5%, for 364 days 6.5% and 7.0% and for FD of 23 months, the rates are 7.3% and 7.85%.
To a large section of the population, the significance of fixed deposits is rising as the prospect of an interest rate decline brightens. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
