When the Reserve Bank of India (RBI) is expected to slash repo rate later this year, this is seen as a good time to lock your money in fixed deposits.
Ideally, one can lock the money for a long duration in order to make the most of prevailing high interest rates. Usually, the interest rate rises with the tenure of deposit. This means longer the tenure, higher the rate of interest and shorter the tenure, lower the rate of interest.
Here we give a lowdown on the top banks and the interest rates they offer on 3-year fixed deposits:
As we can see in the table below, the highest rate of interest of 7.25 percent is given by Punjab National Bank to regular depositors on 3-year deposits, and 7.75 percent to senior citizens.
At the same time, HDFC Bank offers 7 percent on its 3-year deposits to regular citizens and 7.5 percent to senior citizens.
Likewise, ICICI Bank also offers 7 percent per annum on 3-year deposits, while an extra 50 basis points is offered to senior citizens.)
(Interest rates offered on 3-year fixed deposits)
Bank of Baroda offers 6.75 percent per annum to 3-year deposits and 7.25 percent to senior citizens. State Bank of India offers (SBI) 7 percent to regular citizens and 7.5 percent to senior citizens. Kotak Mahindra Bank also offers the same rate of interest on its 3-year deposits.
Two private lenders raised their FD rates
It is noteworthy to mention here that ICICI Bank and Axis Bank recently revised their fixed deposit (FD) interest rates.
ICICI Bank revised rates of interest on fixed deposits with effect from July 2. The new interest rates range between 3 to 7.20 percent for regular citizens, and 3.5 percent and 7.75 percent for senior citizens.
Meanwhile, Axis Bank revised interest rates on fixed deposits with effect from July 1.
The interest rates range between 3 per cent to 7.2 percent for regular citizens, and between 3.5 to 7.75 percent for senior citizens.