If you are planning to open a fixed deposit (FD) with a bank, it is recommended to compare the interest rates offered by different banks. Although most banks offer similar interest rates on their term deposits, even a marginal difference can help you save more. For instance, if you receive an extra 50 basis points on an FD of ₹10 lakh, your extra income will be ₹5,000 in a year. And if you have locked the FD for a period of three years, the extra savings will rise to ₹15,000.
Meanwhile, it is important to note that RBI on April 9 cut its repo rate by 25 basis points, thus incentivising banks to cut their FD interest rates. Therefore, if you plan to lock your money in an FD, you can do so as soon as you can.
These banks offer highest rates on their 1-year FDs:
I. SBI (State Bank of India): The largest lender in the country offers 6.7 percent and 7.20 percent on its one year fixed deposits to general citizens and senior citizens, respectively. These rates will come into force from April 15 i.e., tomorrow.
II. ICICI Bank: This private bank offers 6.7 percent to general citizens and 7.2 percent to senior citizens.
III. HDFC Bank: The largest private bank offer 6.60 percent and 7.10 percent on its fixed deposit for one year to general citizens and senior citizens, respectively. These rates came into force on April 1, 2025.
IV. Kotak Mahindra Bank: This private bank offers 7.10 percent and 7.60 percent to general and senior citizens on its one year fixed deposits. These rates came into force on April 9. 2025.
V. Federal Bank: This bank offers 7 percent and 7.5 percent to general and senior citizens, respectively on one-year fixed deposits. These rates came into effect on Jan 10, 2025.
VI. Bank of Baroda: This bank offers 6.85 percent and 7.35 percent to general citizens and senior citizens, respectively, on its one-year fixed deposits (FDs).
VII. Union Bank of India: This state lender offers 6.8 percent to general citizens and 7.3 percent to senior citizens as per the rates which came into force on Jan 1, 2025.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
