Interest Rate: Commercial lenders today provide a range of maturity options
Fixed Deposit Interest Rate: Fixed deposits have been the financial instrument of choice for long among investors with a rather low risk appetite. These deposits, also known as term deposits, provide fixed, guaranteed returns for funds held in a commercial bank for a pre-defined period of time. Currently, the country’s top banks provide annual returns to the tune of 2.5-6.3 per cent on retail fixed deposits, or fixed deposits up to Rs 2 crore. Commercial banks, from the likes of state-run SBI – the country’s largest lender by assets – to private sector lender HDFC Bank, its largest in terms of market value, provide a variety of maturity options for fixed deposits, starting from as short as seven days to as long as 10 years.
For example, SBI currently provides eight maturity options, paying returns of 2.9-5.4 per cent to the general public, and 3.4-6.2 per cent to senior citizens.
Here are the latest interest rates applicable to retail fixed deposits at the country’s top banks:
SBI
| Maturity Period | Interest Rate With Effect From May 27 | |
|---|---|---|
| Public | Senior citizen | |
| Seven days to 45 days | 2.9% | 3.4% |
| 46 days to 179 days | 3.9% | 4.4% |
| 180 days to 210 days | 4.4% | 4.9% |
| 211 days to less than one year | 4.4% | 4.9% |
| One year to less than two years | 5.1% | 5.6% |
| Two years to less than three years | 5.1% | 5.6% |
| Three years to less than five years | 5.3% | 5.8% |
| Five years and up to 10 years | 5.4% | 6.2% |
| (Source: sbi.co.in) | ||
HDFC Bank
| Maturity Period | Interest Rate (With Effect From August 25) | |
|---|---|---|
| Public | Senior citizen | |
| Seven days to 14 days | 2.50% | 3.00% |
| 15 days to 29 days | 2.50% | 3.00% |
| 30 days to 45 days | 3.00% | 3.50% |
| 46 days to 60 days | 3.00% | 3.50% |
| 61 days to 90 days | 3.00% | 3.50% |
| 91 days to six months | 3.50% | 4.00% |
| Six months one day to nine months | 4.40% | 4.90% |
| Nine months one day to less than one year | 4.40% | 4.90% |
| One year | 5.10% | 5.60% |
| One year one day to two years | 5.10% | 5.60% |
| Two years one day to three years | 5.15% | 5.65% |
| Three years one day to five years | 5.30% | 5.80% |
| Five years one day to 10 years | 5.50% | 6.25% |
| (Source: hdfcbank.com) | ||
Kotak Mahindra Bank
| Maturity Period | Interest Rate With Effect From August 26 | |
|---|---|---|
| Seven to 14 days | 2.50% | |
| 15 to 30 days | 2.50% | |
| 31 to 45 days | 3% | |
| 46 to 90 days | 3% | |
| 91 to 120 days | 4% | |
| 121 to 179 days | 4% | |
| 180 days | 4.60% | |
| 181 to 269 days | 4.70% | |
| 270 days | 4.70% | |
| 271 to 363 days | 4.70% | |
| 364 days | 4.75% | |
| 365 to 389 days | 4.75% | |
| 390 days (12 months and 25 days) | 5.10% | |
| 391 days to less than 23 months | 5.10% | |
| 23 months | 5.10% | |
| 23 months and one day to less than two years | 5.10% | |
| Two years to less than three years | 4.90% | |
| Three years and above but less than four years | 4.90% | |
| Four years and above but less than five years | 4.75% | |
| Five years and above up to 10 years | 4.50% | |
| (Source: kotak.com) | ||
ICICI Bank
| Lock-In | Interest Rate With Effect From August 7 | |
|---|---|---|
| Public | Senior citizen | |
| Seven to 14 days | 2.50% | 3% |
| 15 to 29 days | 2.50% | 3% |
| 30 to 45 days | 3% | 3.50% |
| 46 to 60 days | 3% | 3.50% |
| 61 to 90 days | 3% | 3.50% |
| 91 to 120 days | 4% | 4.50% |
| 121 to 184 days | 4% | 4.50% |
| 185 to 210 days | 4.40% | 4.90% |
| 211 to 270 days | 4.40% | 4.90% |
| 271 to 289 days | 4.40% | 4.90% |
| 290 days to less than one year | 4.50% | 5% |
| One year to 389 days | 5% | 5.50% |
| 390 days to less than 18 months | 5% | 5.50% |
| 18 months and one day to two years | 5.10% | 5.60% |
| Two years and one day to three years | 5.10% | 5.60% |
| Three years and one day to five years | 5.35% | 5.85% |
| Five years and one day to 10 years | 5.50% | 6.30% |
| Five years tax-saver FD (maximum Rs 1.50 lakh) | 5.35% | 5.85% |
| (Source: icicibank.com) | ||
All of these commercial banks offer slightly higher returns to senior citizen customers compared to other depositors.
Earlier this month, the Reserve Bank of India (RBI) held the repo rate – or the key interest rate at which it lends short-term funds to commercial banks – steady at 4 per cent, and said it would maintain an “accommodative” stance for as long as necessary to revive growth and mitigate the impact of COVID-19 while ensuring inflation remains within target.
The central bank has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50 per cent.
