FD interest rates: Before you lock your money in a fixed deposit (FD), it is important to compare the interest rates offered by different banks. Usually, most banks offer somewhat similar interest rates on deposits of the same tenure. However, a small difference of 30-40 basis points can make a huge difference in making money in the long run.
For example, if you are investing Rs 10 lakh in a fixed deposit for 5 years, a difference of 30 basis points can lead to additional savings of Rs 15,000. And if the difference was 50 basis points, the additional savings would be Rs 25,000 over a period of 5 years.
So, it is advisable to compare the interest rates on fixed deposits offered by different banks before choosing one. Another thing to note is the tenure of the fixed deposit. The longer the tenure, the greater the savings. Conversely, the shorter the time period, the smaller the savings.
Depositors increased investment in FD
Thanks to the high interest rates offered by banks, depositors have increased their investment in fixed deposits by Rs 46,728 in the last one year. Moreover, the share of fixed deposits in total deposits increased to 61.4 per cent in September 2024 from 59.8 per cent a year ago, data released by SBI Research showed.
Here we are giving details of the interest rates offered by eight different banks on 3-year fixed deposits. Let’s know which bank gives what interest rate.
Private Banks
HDFC Bank offers 7 per cent interest to general citizens and 7.5 per cent to senior citizens on its fixed deposits. These new rates came into effect on July 24, 2024. ICICI Bank offers 7 per cent interest on FDs to general citizens and 50 basis points higher interest to senior citizens.
| Bank | General (%) | Senior Citizens (%) |
HDFC Bank | 7 | 7.5 |
| ICICI Bank | 7 | 7.5 |
| Kotak Mahindra Bank | 7 | 7.6 |
| Federal Bank | 7 | 7.5 |
Kotak Mahindra Bank offers 7 percent interest on fixed deposits to general citizens and 7.5 percent to senior citizens. These rates were introduced on June 14, 2024. Federal Bank offers 7 percent interest on fixed deposits to general citizens and 7.5 percent to senior citizens. These rates came into effect on October 16.
State Lenders
State lenders are offering somewhat similar interest rates on their fixed deposits. SBI offers 6.75 per cent interest to general citizens and 7.25 per cent to senior citizens on its 3-year fixed deposits. These rates came into effect on June 15, 2024. Punjab National Bank offers 7 per cent and 7.5 per cent interest to general citizens and senior citizens respectively from October 1.
State lenders | General (%) | Senior Citizens (%) |
| SBI: | 6.75 | 7.25 |
| Union Bank Of India | 6.7 | 7.2 |
| Canara Bank | 7.4 | 7.9 |
| Punjab National Bank | 7 | 7.5 |
Union Bank of India is offering 6.7 per cent and 7.2 per cent interest rates on 3-year fixed deposits from November 1. The highest interest rate is being offered by Canara Bank, which recently revised its rates earlier this month. On three-year fixed deposits, the state lender is offering 7.4 per cent interest to general citizens and 7.9 per cent to senior citizens.
