Every man invests for his future. Especially where the money is safe and interest is good. In such a situation, the first choice of the people is the bank and the second insurance company. Customers get many offers for investment in the bank. In which most customers invest money on fixed deposits. The special thing about FD is that there is no risk in it. Interest is paid by banks every year. However, FD interest in government, private, foreign and small finance banks will vary. But currently some private banks are paying very good interest on fixed deposits for two to three years. Let us know how much interest is paid on FD in a private bank.
Bank Name Interest Rate on FD of 2-3 years
Axis Bank 5.4 percent
Bandhan Bank 5.75 percent
Catholic Syrian 5.25 percent
City Union Bank 5.75 percent
DCB Bank 6.75 percent
Dhanalakshmi Bank 5.4 percent
Federal Bank 5.35 percent
HDFC Bank 5.15 percent
ICICI Bank 5.15 percent
IDFC First Bank 5.75 percent
Indsland Bank 6.5 percent
Jammu and Kashmir Bank 5.2 percent
Karnataka Bank 5.55 percent
Kotak Bank 5.1 percent
Karur Vysya Bank 5.65 percent
RBL Bank 6.75 percent
South Indian Bank 5.4 percent
Tamil Nadu Mercantile Bank 5.65 percent
TNSC Bank 5.85 percent
Yes Bank 6.75 percent
These government banks are giving good interest on FD, see name
In top banks like State Bank of India, HDFC, ICICI and Bank of Baroda, senior citizens are being given good schemes in fixed deposits. Under this scheme, additional interest is being paid by these banks to the elderly at their current rates applicable to term deposits. The special FD scheme was launched in May to protect the interests of senior citizens amidst the corona virus epidemic. This special scheme is in force till 31 March 2021. Let us know which bank is paying how much interest on FD.
1. Bank of Baroda
Bank of Baroda offers 100 bps more to senior citizens. In the special FD scheme, if an elderly deposits a fixed amount, then he will get an interest of 6.25 percent.
2. ICICI Bank
ICICI Bank offers 80 bps higher interest rate. The bank is paying 6.30 percent interest per annum to senior citizens under the Golden Year FD scheme.
3. State Bank of India
State Bank of India offers 80 bps interest rate. Currently, SBI pays 5.4 percent interest on five-year FDs to ordinary citizens. There will be 6.20% interest rate for senior.
4. HDFC Bank
If a senior citizen opens a Senior Citizen Care FD in HDFC Bank, they will get an interest of 6.25 percent.
Recently, RBI had decided this
Recently the Reserve Bank of India in its final monetary policy review meeting of the current financial year decided to keep the repo and reverse repo rates unchanged at 4% and 3.35%. Note that returns, high liquidity, and ease of investment make fixed deposits one of the most popular investment instruments in our country, especially among at-risk investors such as seniors. However, now, FD interest rates have begun to touch multi-year lows since the epidemic outbreak last year – something that is troubling investors, and the RBI’s ability to keep the central policy rate unchanged at 4%. The announcement is not good for FD investors. Most banks are offering anywhere between 3% -5.50% p.a. Under normal FD (for non-senior citizen depositors) up to 5 years amount less than Rs 1 crore (table below for details). Only a few private and small finance banks 5.75% -7.50% p. are offered between a. On regular FDs with select tenure.
FD gets safe investment
Fixed deposits are one of the preferred guarantee-returns providing investment guarantee for many individuals. The duration of FD can be from 7 days to 10 years. Bank fixed deposits provide assured returns and you can get interest income on a monthly, quarterly or annual basis. In a cumulative FD, the accrued interest is periodically reinvested into the principal amount, which earns you a higher return. As you earn interest on interest earned throughout the financial year, your income will be higher.
