Prior to investing in a fixed deposit (FD), depositors tend to compare the interest rates offered by different banks so that they can choose one bank over the other. Typically, the rate of interest and the tenure of FD go hand in hand. This means the longer the FD tenure, the higher the interest rate.
If you want to ascertain the interest rates offered by different banks on one-year and five-year fixed deposits, you can read these Livemint articles here and here, respectively.
Here we list out the returns delivered by different banks on their three-year fixed deposits.
The highest interets rates are offered by Kotak Mahindra Bank and Bank of Baroda which give 7 per cent and 7.15 per cent to general citizens on three-year fixed deposits and an extra 50 basis points to senior citizens.
Let us find out more about the FD interest rates offered by different private and public sector lenders.
Highest interest rates offered by different lenders:
HDFC Bank: On the three-year fixed deposit, the largest private lender offers 7 per cent annual interest to general depositors and 7.5 per cent to senior citizens. These rates came into force on July 24, 2024.
ICICI Bank: It offers exactly the same interest rate as HDFC Bank, 7 per cent and 7.5 per cent, to general and senior citizens.
Kotak Mahindra Bank: This bank offers 7 per cent annual interest to general citizens and 7.6 per cent to senior citizens on FDs of three-year tenure. The latest rates came into force on June 14.
State Bank of India (SBI): The largest lender in the country offers 6.75 per cent to general citizens and 7.25 per cent to senior citizens on three-year fixed deposits. These interest rates came into effect on June 15, 2024.
Bank of Baroda: As mentioned above, Bank of Baroda offers 7.15 per cent on three-year fixed deposits to general citizens and 7.65 per cent to senior citizens. These rates came into force on Thursday, September 5.
Punjab National Bank (PNB): The bank offers 7 per cent to general citizens and 7.5 per cent to senior citizens on fixed deposits of three-year tenure. The latest rates came into force on August 1, 2024.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.