If you’re considering opening a fixed deposit (FD), it’s essential to compare interest rates offered by different banks to maximize your returns. Here’s an overview of the interest rates on term deposits from six major banks, both private and state-owned, for 1-year deposits:
- Axis Bank: Offers an interest rate of 6.7% for 1-year deposits of less than ₹2 crore. Rates for longer tenures vary, with 7.1% for 2-4 years and 7% for five years.
- Bank of Baroda: A state-owned bank, provides a 7% interest rate for 1-2 year FDs, 7.25% for 2-3 years, and 6.5% for 4-year deposits.
- HDFC Bank: Offers 6.6% interest for regular citizens and 7.1% for senior citizens on 1-year deposits. Rates for other tenures range from 7% to 7.25%.
- ICICI Bank: Provides 7.4% interest for 1-year FDs, 7.3% for 390 days to 15 months, and 7.05% for 15 months to 2 years. Rates for longer tenures are 7% or lower.
- Kotak Mahindra Bank: Offers a 7.1% interest rate for 1-year FDs, 7.15% for 2 years, 7% for 3-4 years, and 6.2% for five years.
- State Bank of India (SBI): The largest lender in India, provides a 6.8% interest rate for 1-year deposits. Rates for other tenures range from 6.5% to 7%.
Keep in mind that interest rates may vary based on factors such as deposit amount and customer category (regular or senior citizen). It’s advisable to carefully review the terms and conditions of each bank before making a decision.
