Fixed Deposits, or FDs, bear something of an old-worldly charm about them. Though many young investors consider them somewhat of a fuddy-duddy instrument, investment strategists advise that a substantial part of any serious investor’s portfolio should park a significant amount in debt instruments.
While selecting FDs, the biggest decided is the rate of interest it offers. Let’s have a look at the interest rates offered by HDFC Bank and ICICI Bank, the two biggest private sector banks in India. Both of them have a huge and growing number of customers and the interest rates they offer impact a large number of them.
Highest interest rates of HDFC, ICICI Bank
The highest interest rates offered by HDFC Bank of its FDs are 7.35% (general customers) and 7.85% (senior citizens) on tenure of 35 months. On the other hand, ICICI Bank offers 7.25% (general customers) and 7.8% (senior citizens) for deposits carrying tenure of 15 months to 18 months.
Interest rate on 1-year FD
HDFC Bank pays 6.6% to those below 60 years and 7.1% to those above that age on 1-year FDs. On the other hand, ICICI Bank offers 6.7% and 7.2% interest on FDs with the same maturity period.
Interest rate on 2-year FD
General customers of HDFC Bank get 7% interest on 2-year FDs, while senior citizens are entitled to 7.5% interest. ICICI Bank offers slightly higher rates on this tenure – 7.25% to general customers and 7.75% to senior citizens.
Interest rate on 3-year FD
The rates paid by HDFC Bank on 3-year FDs are the same as 2-year deposits – 7% and 7.5% respectively for general and senior citizen depositors. ICICI Bank, too, pays identical rates as its competitor to both categories of customers.
Interest rate on 5-year FD
The interest rates paid by HDFC Bank and ICICI Bank for 5-year FDs are identical. Both offer 7% and 7.5% to general customers and senior citizens. Incidentally, 5-year FDs also offer income tax benefits according to Section 80C of the Income Tax Act 1961.
Despite the lure of higher returns in equities and mutual funds, millions of Indians still repose their faith in Fixed Deposits and will continue to do so. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
