That Fixed Deposits (FD) are done only by risk-averse investors is an incorrect notion. Almost all investment strategists advise clients to park some of their funds into debt instruments and FDs are to be found in the portfolio of almost all investors.
Intense competition among banks
Right now, banks are locked in an intense competition to attract investments from clients and FDs are one of the instruments which they are using as a bait. Interest rates on FDs are also ruling at their peak in India. Let’s look at the highest interest rates PSU and private banks are offering in their highest slabs.
SBI, PNB, Canara Bank FD rates
The largest bank in India, SBI, is offering an interest rate of 7.25% for general customers and 7.75% for senior citizens for an FD of 444 days. However, this FD will be available to the public only till September 30, 2024.
The second largest PSU bank of India, Punjab National Bank, or PNB, offers 7.25% for general customers for a tenure of 400 days. For Canara Bank and Bank of Baroda (BoB), the highest rates of interest in FD are 7.25% for a tenure of 444 days and 7.25% for 399 days respectively.
Bank of India is offering an interest of 7.3% for 666 days, while Bank of Maharashtra offers 7.25% for 777 days. Central Bank of India is offering an interest of 7.45% for a tenure of 444 days.
HDFC bank, ICICI FD Rates
The biggest private sector bank of India, HDFC Bank, is offering its highest rate of 7.4% for a tenure of 55 months. ICICI Bank is offering 7.25% for tenures between 15 months to 24 months and Axis Bank is offering 7.2% between 17 months to less than 18 months.
Kotak Bank’s highest interest rate 7.4% is available for tenures between 390 days to less than 23 months. Bandhan Bank: 8% for 1 year 9 months. DBS Bank: 7.5% for 376 days to 540 days. Federal Bank: 7.4% for 777 days.
IndusInd Bank: 7.75% for 1 year to 2 years; IDFC First Bank: 7.75% for 500 days; Yes Bank: 8% for 18 months. RBL Bank: 8.1% for 500 days.
Fixed deposits haven’t lost their charm to a vast majority of India’s population. The reason: they provide stable and predictable returns, unlike market-linked asset classes. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
