In India public sector banks inspire confidence among a vast population. Recently, the Reserve Bank of India governor has told banks that more and more household savings are moving away from banks to other instruments of investment and advised them to compete for attracting savings. This is an indication that banks might tweak interest rates even more to attract deposits for onward lending to retail customers and businesses.
Significantly, several PSU banks have already revised their FD interest rates in the past two months. The second largest PSU bank in India, Punjab National Bank, and Union Bank and Bank of India are on this list. These interest rates are applicable on retail Fixed Deposits.
SBI FD rates
The big daddy of them all, State Bank of India (SBI) has launched a new FD and branded it “Amrit Vrishti.” This FD is for a fixed tenure of 444 days and offers a rate of 7.25% for customers below 60 years of age. Senior citizens would be entitled to 7.75%. This special FD will be available only till March 31, 2025.
Union Bank of India FD rates
According to data, Union Bank of India offers 7.40% interest on an FD made by a non-senior citizen for 333 days, which seems to be the highest among PSU banks. Those above 60 years of age can get 7.90% and those above 80 years would get 8.15%.
Bank of India FD rates
Bank of India has a Fixed Deposit scheme that offers non-senior citizens 7.30% interest for 666 days. This interest rate climbs to 7.80% for those above 60 and 7.95% for those above 80 years.
Bank of Baroda FD rates
Bank of Baroda offers a branded FD which is known as Monsoon Dhamaka. It offers an annual rate of 7.25% for 399 days. This is a new scheme that has been launched to coincide with the rainy season on July 15, 2024.
Nowadays almost all banks have the facility of opening an FD online or through their app which can be done through mobile phones. Some experts are of the opinion that interest rates are perhaps near their peak in India and one could explore the possibility of locking the highest rates for the long term.
Fixed deposits in PSU banks continue to provide security and predictable income for a number of Indians and interest rates are almost near their peak. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
