The Monetary Policy Committee of the Reserve Bank of India (RBI) has kept the repo rate at 6.5 percent for the tenth consecutive time. However, the central bank is expected to cut interest rates in its December meeting, which will have an impact on interest on loans and FDs.
In such a situation, if you are thinking of doing Fixed Deposit (FD), first compare the interest rates offered by the banks. Then do FD in that bank where you are getting more interest. By doing this you will get more returns. Often people keep FD in the same bank in which they have their savings account.
Higher interest on long term FDs
Generally, banks offer higher interest rates on long-term FDs. This means that the longer the tenure of the deposit, the higher the interest rate. Conversely, the shorter the FD tenure, 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 short term deposits like 1 year or 6 months. Interest rates offered to senior citizens are increased by 50-65 basis points.
| Bank Name | Interest (%) for general public | Interest (%) for 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 |
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 to senior citizens. The latest rates came into effect from October 3.
Kotak Mahindra Bank offers 7 percent interest to general citizens and 7.6 percent to senior citizens. HDFC Bank is offering an interest rate of 7 percent to general citizens and 7.5 percent to senior citizens from July 24. ICICI Bank is also offering the same interest rate. Axis Bank rates are slightly higher. It offers an interest rate of 7.1 percent to general citizens and 7.6 percent to senior citizens.
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