The Reserve Bank of India (RBI) recently announced its decision to maintain the policy rate unchanged, marking the seventh consecutive time it has done so. This pause comes after a series of rate hikes totaling 250 basis points since May 2022, with the last increase occurring in April 2023
Impact on Fixed Deposit Rates
Fixed deposit (FD) interest rates are directly influenced by factors such as the RBI’s policies, particularly the repo rate. With the central bank opting for stability, it’s anticipated that FD interest rates will remain steady.
This stability holds significant advantages for FD investors, particularly those seeking reliable income streams, such as retirees and conservative investors prioritizing capital preservation and regular earnings.
Investor Strategy Going Forward
According to experts, the RBI may consider adjusting interest rates towards the end of this year, depending on inflation and food inflation rates. Therefore, now could be an opportune time to invest in FDs, capitalizing on the current higher interest rates.
Fixed Deposit Rates Chart (Compare and Choose Best for you):
Private Sector Banks
Below Table is having Bank wise, Highest Interest Rates offered by Bank
| Interest Rates (per annum) | ||||
| S. No. | Bank Name | Time Period | General | Senior Citizens |
| 1 | Axis bank | 17 months to less than 18 months | 7% | 7.85% |
| 2 | Bandhan bank | 1 year 4 months 13 days | 7.85% | 8.35% |
| 3 | City Union Bank | 400 days | 7.00% | 7.50% |
| 4 | CSB Bank | 1 year 1 month 6 days | 7.75% | 7.75% |
| 5 | DBS Bank | 376 days to 540 days | 7.50% | 8.00% |
| 6 | DCB Bank | 25 months to 26 months | 8.58% | 8.60% |
| 7 | Federal Bank | 500 days | 7.50% | 8.00% |
| 8 | HDFC Bank | 18 months to < 21 months | 7.25% | 7.75% |
| 9 | ICICI Bank | 18 months to 2 years | 7.20% | 7.75% |
| 10 | IDFC First Bank | 500 days | 8.00% | 8.50% |
| 11 | Induslnd Bank | 1 Year 7 Months upto 2 Years | 7.65% | 8.25% |
| 12 | Jammu&Kashmir Bank | 1 Year to less than 2 years | 7.10% | 7.60% |
| 13 | Karur Vysya Bank | 7 days to 6 years | 7.50% | 8.00% |
| 14 | Kotak Mahindra Bank | 391 Days – Less than 23 Months | 7.61% | 8.14% |
| 15 | Nainital Bank | 1 year 1 month 5 days | 7.05% | 7.55% |
| 16 | RBL Bank | 18 months to 24 months | 8.10% | 8.60% |
| 17 | SBM Bank india | 3 years 2 days | 8.25 | 8.75 |
| 18 | South Indian Bank | 500 days | 7.20% | 7.20% |
| 19 | Tamilnad Mercantile Bank | 444 days | 7.75 | 8.25 |
| 20 | Yes Bank | 1 year 1 day to less than 18 months | 7.5 | 8 |
Public Sector Banks:
Below Table is having Bank wise, Highest Interest Rates offered by Bank
| Interest Rates (per annum) | ||||
| S. No. | Bank Name | Time Period | General | Senior Citizens |
| 1 | Bank of Baroda | Above 2 Years and upto 3 Years | 7.25% | 7.75% |
| 2 | Bank of India | 2 Years | 7.25% | 6.50% |
| 3 | Bank of maharashtra | 365 days/1 year | 6.50% | 7% |
| 4 | Canara Bank | 444 days | 7.25% | 7.75% |
| 5 | Central Bank of India | 1 yr to less than 2 yrs | 6.75% | 7.25% |
| 6 | Indian Bank | 2 years to less than 3 years | 6.70% | 7.20% |
| 7 | Indian Overseas Bank | 1 year 2 months 17 days | 6.90% | 7.40% |
| 8 | Punjab National Bank | 400 Days | 7.25% | 7.25% |
| 9 | punjab and Sind Bank | 444 days | 7.25% | 7.75% |
| 10 | State Bank of India | 400 days | 7.10% | 7.60% |
| 11 | Union bank of India | 399 days | 7.25 | 7.75 |
Foreign Banks:
Below Table is having Bank wise, Highest Interest Rates offered by Bank
| Interest Rates (per annum) | ||||
| S. No. | Bank Name | Time Period | General | Senior Citizens |
| 1 | Citi Bank | For 4 years | 7.10% | 7.60% |
| 2 | HSBC India Limited | 732 days to less than 36 months | 7.25% | 7.75% |
| 3 | The Deutsche Bank | Above 2 years to 3 years | 8% | 8% |
| 4 | DBS Financial | 1 year 1 month 6 days | 7.75% | 7.75% |
| 5 | Standerd Chartered Bank | 2 years<3 years | 7.50% | 8% |
Features of Fixed Deposits
FDs offer various features catering to diverse investor needs:
- Minimum Deposit: As low as Rs 100, varying by institution.
- Tenure Flexibility: Ranges from 7 days up to 10 years.
- Interest Rate Stability: Generally fixed throughout the FD’s term, though some banks offer schemes with rates tied to external benchmarks.
- Interest Payout Choices: Options include monthly to yearly payouts or a cumulative option for compounding benefits.
- Early Withdrawal: Available with penalty charges.
- Loan Collateral: FDs can be used as collateral for loans, continuing to accrue interest.
Benefits of Fixed Deposits
Investing in FDs offers numerous benefits:
- Most Secured Investment and Predictable Returns.
- Deposit Insurance up to Rs 5 lakh through DICGC.
- Tax Deduction up to Rs 1.5 lakh under Section 80C for tax-saving FDs.
- Can Serve as Collateral for Loans or Secured Credit Cards.
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Hello, please compile a comparison chart of highest interest provided by small finance banks.
Well written Article giving full information on the subject. It is not Tax deduction but exemption from investment in FD(up to 1.5 lakhs under 80C that to subject to conditions of term, tax regime opted)
Excellent ⁹
Best option for senior citizens who have taken numerous risks all thru their lives, and at this stage of life they look for safety rather than returns.
Good content. But you avoided NBFC sector which is giving much better returns than Banking sector, especially on FD.