There is a particular attraction of fixed deposits (FD) of 1-year tenure. The period is neither too small nor too long, offering investors the flexibility to reinvest in a fairly comfortable time period if interest rates are revised.
Moreover, the rates on 1-year FDs are not too low compared to the highest rates offered by a bank. Therefore, the customer gets both significant interest rates and flexibility by investing in 1-year FDs.
Let’s have a look at the interest rates on fixed deposits that some of the biggest banks in the country are offering to senior and non-senior citizens.
State Bank of India
The biggest commercial bank in the country is offering interest of 6.8% to depositors below 60 years and 7.3% to senior citizens.
Incidentally, the highest rate offered to non-senior citizens by SBI is 7% for FDs of tenure 2-3 years and 7.5% for senior citizens.
Please note that these rates are applicable to deposits below Rs 3 crore.
Punjab National Bank
The second biggest PSU bank in the country offers three different interest rates on its FDs – for non-senior citizens, senior citizens and super senior citizens (those above 80 years).
On the 1-year FDs these interest rates are 6.80% (for those below 60 years), 7.30% (between 60 and 80 years) and 7.60% (above 80 years).
HDFC Bank
India’s largest private sector bank offers an interest of 6.60% and 7.10% for non-senior and senior citizens respectively for 1-year fixed deposits.
The highest rate offered by this bank is for FDs of tenure between 4 years and 7 months to 55 months. The applicable rates are 7.4% and 7.9% for those below and above 60 years respectively.
ICICI Bank
On FDs of tenure between 1 year and 15 months, the rate of interest is 6.70% and 7.20% for non-senior and senior citizens respectively.
Axis Bank
This bank offers an interest rate of 6.70% on 1-year FDs to those below 60 years. For those above that age, 7.20% is offered.
Interest rates have plateaued off in India. One-year fixed deposits suit a large number of people. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
