Planning an FD? Check latest interest rates of SBI, HDFC Bank, ICICI Bank, and other top lenders in India

Fixed Deposits (FDs) are often viewed as a safe and reliable investment tool as they tend to offer guaranteed returns with higher interest rates than savings accounts, making them ideal for risk-averse investors.

Through a fixed deposit, or FD, an individual can allocate a lump sum amount in a financial institution for a predetermined period and earn interest at a fixed rate. Because returns are locked in at the time of investment, FDs are often preferred by investors looking for stable and predictable earnings, something which is not assured in stocks and mutual funds.

What determines the interest rates?

The tenure for fixed deposits can range from a few days to several years, depending on the bank’s offering. Generally, longer tenures may offer slightly higher interest rates, though it varies across institutions.

Investors also have the option to choose how the interest on their FD is paid, which is either periodically (monthly, quarterly or annually), or at maturity along with the principle amount.

However, investors should keep in mind that FDs usually come with penalties for premature withdrawals and that the interest earned is taxable under applicable income tax rules. As a result, comparing interest rates, tenure options, and withdrawal conditions under banks can help in selecting the most suitable FD option.

Here’s a look at the latest FD interest rates offered by major private and public sector banks in India.

State Bank of India (SBI)

FD interest rates at SBI range from 3.05% to 6.05% per annum for general-public depositors and from 3.55% to 7.05% for senior citizens. Tenures for regular FDs range between 7 days and 10 years.

Meanwhile, banks also offers an option of non-callable FD, a type of deposit that does not allow early withdrawal before maturity, though there are some exceptions such as death or bankruptcy. It usually offers higher interest rates compared to regular FDs.

For instance, SBI offers interest ranging from 6.55% to 6.80% for the general public, and 7.05% to 7.30% for senior citizens. The lock-in periods for these deposits are one and two years.

The highest FD rate at India’s largest public sector lender is for a deposit tenure of two years; less than three years fetch 6.40% for regular public and 7.05% for senior citizens who keep their deposits from five to 10 years, according to data on the official website at the time of writing.

ICICI Bank

India’s second-largest private bank offers interest rates ranging from 2.75% to 6.50% per annum for general-public depositors and from 3.25% to 7.10% for senior citizens. Tenures for regular FDs range between 7 days and 5 years.

The highest interest rate at ICICI Bank is 7.10%, for senior citizens investing in deposits of three to five years, and the five-year tax saver FD, according to data on the official website at the time of writing.

For regular customers, ICICI Bank’s highest interest rate offer is at 6.50% for deposits ranging from 3-10 years, and the five-year tax saver FD.

HDFC Bank

HDFC Bank offers interest rates ranging from 2.75% to 6.15% per annum for general-public depositors and from 3.25% to 6.65% for senior citizens. Tenures for regular FDs range between 7 days and 10 years.

It offers the highest interest rate of 7% for senior citizens who invest in FDs with tenures ranging from three years to four years and seven months.

For the general public, India’s largest private-sector lender offers the highest interest rate of 6.50% for deposits ranging from three to four years and seven months, according to data on its official website.

Axis Bank

Axis Bank offers interest rates ranging from 3% to 6.45% per annum for general-public depositors and from 3.50% to 7.2% for senior citizens. Tenures for regular FDs range between 7 days and 10 years.

It offers the highest interest rate of 7.2% to senior citizens who invest in FDs with tenures ranging from 5 to 10 years.

For the general public, the lender’s highest interest rate offer is at 6.45% for deposits ranging from 15 months to 10 years, according to data on the official website.