FD interest rates: 10 percent of the salary of employees Usually, banks give higher interest rates on long-term FDs. This means that the longer the deposit period, the higher the interest rate. Conversely, the shorter the FD period, the lower the interest rate.
FD interest rates: The Monetary Policy Committee of the Reserve Bank of India (RBI) maintained the repo rate at 6.5 percent for the tenth consecutive time. However, the central bank is expected to cut interest rates in the December meeting, which will have an impact on the interest on loans and FDs. In such a situation, if you are planning to make a fixed deposit (FD), then first compare the interest rates offered by the banks. Then make an FD in the bank where you are getting higher interest. By doing this you will be able to get higher returns. Often people make FDs in the bank in which they have a savings account.
Higher interest on long term FD
Usually, banks offer higher interest rates on longer-term FDs. This means that the longer the deposit period, the higher the interest rate. Conversely, the shorter the FD period, the lower the interest rate. We have compiled a list of interest rates offered by various banks on their 3-year fixed deposits. These interest rates are higher than the interest rates offered on shorter-term deposits like 1 year or 6 months. Additionally, the interest rates offered to senior citizens are higher by 50-65 basis points.
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| Bank | Interest to common people (%) | Interest to Senior Citizens (%) |
| State Bank Of India | 6.75 | 7.25 |
|
Bank Of Baroda
|
6.5 | 7.15 |
| Kotak Mahindra Bank | 7 | 7.6 |
| HDFC | 7 | 7.5 |
| ICICI Bank | 7 | 7.5 |
| Axis Bank | 7.1 | 7.6 |
As we can see in the table above, the three-year fixed deposit interest rate offered by SBI is 6.75 percent for general citizens and 7.25 percent for senior citizens. Bank of Baroda offers 6.5 percent interest to general citizens and 7.15 percent interest to senior citizens. The latest rates came into effect on October 3. Kotak Mahindra Bank offers 7 percent interest to general citizens and 7.6 percent interest to senior citizens. HDFC Bank is offering 7 percent interest rate to general citizens and 7.5 percent interest rate to senior citizens from July 24. ICICI Bank is also offering the same interest rate. Axis Bank’s rates are slightly higher. It offers 7.1 percent interest rate to general citizens and 7.6 percent interest rate to senior citizens.
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