At a time when the stock market is under pressure and other investment avenues remain volatile, investors are increasingly looking for safer options to protect their hard-earned money. In such uncertain conditions, fixed deposits (FDs) continue to stand out as a reliable and evergreen choice. Offering stable returns and low risk, FDs help investors safeguard their savings while earning decent interest. If you are also planning to secure your investments, it is a good idea to explore the latest FD interest rates offered by leading banks like HDFC Bank, Kotak Mahindra Bank, and ICICI Bank.
What is an FD?
FDs are a great financial tool for saving toward specific goals and can also be automated. In this, a fixed amount is deducted from your bank account every month and deposited separately. Once the FD tenure (which can range from 7 days to 10 years) is completed, you can withdraw your principal and interest or renew it if the interest rates are favorable. However, before investing in an FD, it is advisable to research available options and current interest rates.
State Bank of India (SBI)
In India’s largest public sector bank, the highest FD interest rate is offered on deposits with a tenure of two to less than three years. According to data available on the bank’s official website, the rate is 6.45% for general customers and 6.95% for senior citizens. SBI also offers a deposit option for senior citizens with a tenure of 5 to 10 years, where they get 7.05% returns compared to 6.05% for regular customers.
HDFC Bank
HDFC Bank offers the highest interest rate of 6.95% to senior citizens for FDs with a tenure of 18 months to 3 years. For regular customers, the highest rate is 6.50%, applicable to deposits with a tenure of more than 3 years and less than 5 years (around 4 years and 7 months).
ICICI Bank
India’s second-largest private bank offers an interest rate of 7.10% to senior citizens for deposits with a tenure of 3 to 5 years and for 5-year tax saver FDs. For regular customers, ICICI Bank offers a maximum interest rate of 6.50%, applicable to deposits with tenures ranging from 3 to 10 years and 5-year tax saver FDs.
Kotak Mahindra Bank
Kotak Mahindra Bank offers the highest interest rate of 7.20% to senior citizens for deposits with a tenure ranging from 1 year 3 months to 1 year 6 months (and less than three years). For regular customers, the highest interest rate offered is 6.70%, applicable for similar tenures.