Fixed deposits (FDs), commonly known as time or term deposits, offer a secure investment avenue. It involves parking idle funds for a predetermined period, earning fixed interest at regular intervals or maturity. Banks provide interest rates from 3% to 7%, varying with the investment period. Senior citizens enjoy an additional 0.5% interest. It's crucial to compare FD rates before investing. Here, we outline rates from four banks:
1. State Bank of India (SBI) - Deposits below Rs 2 Crores
• General customers: 3% to 6.10%
• Senior citizens: Additional 50 bps
• Example: 6.80% for one-year maturity, 7% for two to less than three years.
2. ICICI Bank - Deposits below Rs 5 Crores
• General customers: 3% to 7%
• Senior citizens: Extra 0.5%
• Example: 6.70% for one-year maturity, varying rates across tenures.
3. Punjab National Bank (PNB) - Deposits below Rs 2 Crores
• Rates: 3.50% to 7.30%
• Example: 6.75% for one-year maturity (regular), 7.25% (senior citizens).
4. HDFC Bank
• Rates: 3% to 7.75%
• Example: 6.60% for one-year maturity (regular), 7.10% (senior citizens).
Compare these rates to make informed investment decisions based on your preferences and financial goals.
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