Fixed deposits (FDs) remain one of the most secure and reliable investment avenues for Indians who prioritize steady, risk-free returns. However, with repo rates expected to trend downward in the future, now may be the ideal time to lock in the best interest rates before they dip further.
While the Reserve Bank of India (RBI) recently held the repo rate steady in its latest monetary policy review, deposit interest rates have gradually started to soften. This makes it even more crucial for savers to compare FD rates across banks rather than opting for convenience and settling with the nearest or most familiar institution.
Among private banks, ICICI Bank and Federal Bank are leading the way by offering a return of 6.6% to regular customers and a higher 7.1% to senior citizens on three-year deposits. HDFC Bank is not far behind, providing 6.45% to general depositors and 6.95% to seniors. Kotak Mahindra Bank is also competitive with 6.4% for regular investors and 6.9% for those above 60.
Public sector banks are keeping pace as well. Union Bank of India is matching the private players with 6.6% for general customers and 7.1% for seniors. Bank of Baroda trails only slightly, offering 6.5% and 7%, while Punjab National Bank provides 6.4% and 6.9% respectively. The State Bank of India (SBI), the largest lender in the country, offers slightly lower returns at 6.3% for regular customers and 6.8% for senior citizens.
These figures highlight a clear opportunity: locking in an FD now could secure a higher rate before the potential decline sets in. This is especially important for senior citizens who typically rely on interest income for everyday expenses, as the additional 50 basis points offered to them by most banks can significantly boost returns.
Ultimately, a small effort in researching current FD interest rates could translate into better earnings from your savings. Investors should always confirm the latest figures through the bank’s official website or by visiting a nearby branch, ensuring they make a well-informed decision tailored to their financial goals.
