Comments
Fixed Deposits or FDs are a type of savings instrument which have a pre-decided maturity date and offer assured returns in terms of fixed rates of interest to investors. This is why FDs are quite popular when it comes to savings. Recently, state-run lender Punjab National Bank (PNB) raising interest rates by up to 1.25 per cent on domestic term deposits of up to Rs. 10 crore for different tenures, effective January 1, 2018. For domestic retail term deposits of less than Rs. 1 crore, the rate has been increased by 1.25 per cent to 5.25 per cent. Thus, at the time of making an FD, the maturity amount is already known and this helps plan the finances better. FD customers also get an option to choose the tenor of the investment horizon from a short-term period of seven days up to 10 years and it comes with different interest rate options.Currently, the largest lender, State Bank of India (SBI), offers an interest rate of 6.25 per cent on a fixed deposit investment of less than Rs 1 crore for a tenure of one year. The largest private lender, ICICI Bank, offers an interest rate of 6.6 per cent on a fixed deposit less than Rs 1 crore and for the same tenure while PNB also offers the same interest rate on this investment. Bank of Baroda (BoB) offers an interest rate of 6.45 per cent on a fixed deposit less than Rs 1 crore for a period of 1 year.
Given below is a comparative analysis of interest rates on fixed deposits of SBI, ICICI Bank, PNB and BoB:
State Bank of India (SBI) FD Interest Rates:
Revision in Interest Rates On Retail Domestic Term Deposits (Below Rupees One Crore) w.e.f. 01.11.2017
Accordingly, the interest rates for retail domestic term deposits 'Below Rupees One Crore 'have been revised.
The revised interest rates of SBI are as under:
(All figures in % per annum) | Tenors | Revised For Public w.e.f. 01.11.2017 | Revised for Senior Citizens w.e.f. 01.11.2017 |
| 7 days to 45 days | 5.25 | 5.75 |
| 46 days to 179 days | 6.25 | 6.75 |
| 180 days to 210 days | 6.25 | 6.75 |
| 211 days to less than 1 year | 6.25 | 6.75 |
| 1 year | 6.25 | 6.75 |
| Above 1 year to 455 days | 6.25 | 6.75 |
| 456 days to less than 2 years | 6.25 | 6.75 |
| 2 years to less than 3 years | 6 | 6.5 |
| 3 years to less than 5 years | 6 | 6.5 |
| 5 years and up to 10 years | 6 | 6.5 |
ICICI Bank FD Interest Rates:
Interest rates on Domestic, NRO & NRE deposits (Less than ₹ 1 crore)
Tenure Period | Rate of Interest (% p.a.) w.e.f December 11, 2017 | |
| General | Senior Citizen* | |
| 7 days to 14 days | 4 | 4.5 |
| 15 days to 29 days | 4.25 | 4.75 |
| 30 days to 45 days | 5.5 | 6 |
| 46 days to 60 days | 5.75 | 6.25 |
| 61 days to 90 days | 6 | 6.5 |
| 91 days to 120 days | 6 | 6.5 |
| 121 days to 184 days | 6 | 6.5 |
| 185 days to 289 days | 6.25 | 6.75 |
| 290 days to less than 1 year | 6.5 | 7 |
| 1 year to 389 days | 6.6 | 7.1 |
| 390 days to 2 years | 6.75 | 7.25 |
| 2 years 1 day upto 5 years | 6.5 | 7 |
| 5 years 1 day upto 10 years | 6.5 | 7 |
| 5 Years Tax saver FD(Max upto Rs. 1.50 lac) | 6.5 | 7 |
Punjab National Bank (PNB) Fixed Deposit Interest Rates:
Rate Of Interest On Single Domestic Term Deposits (TD) Of Up to Rs.10 Crore
| Domestic TD Less Than Rs.1 Cr. | Domestic TD Rs.1 Cr. To Rs 10 Cr # | ||||
| W.E.F. 01.01.2018 | W.E.F. 01.01.2018 | ||||
| Period | ROI (% p.a.) | A.Y.** | For Senior Citizen ROI (% p.a.) | ROI (% p.a.) | A.Y.** |
| 7 to 14 days | 5.25 | 5.25 | 5.75 | 4.8 | 4.8 |
| 15 to 29days | 5.25 | 5.25 | 5.75 | 4.8 | 4.8 |
| 30 to 45 days | 5.25 | 5.25 | 5.75 | 4.8 | 4.8 |
| 46 to 90 days | 6.25 | 6.25 | 6.75 | 4.9 | 4.9 |
| 91 to 179 days | 6.25 | 6.25 | 6.75 | 4.9 | 4.9 |
| 180 days to 270 Days | 6.25 | 6.3 | 6.75 | 5 | 5.03 |
| 271 days to less than 1 year | 6.25 | 6.35 | 6.75 | 5 | 5.06 |
| 1 year | 6.6 | 6.77 | 7.1 | 5.75 | 5.88 |
| above 1 year & upto 3 years | 6.5 | 6.66 | 7 | 5.5 | 5.61 |
| above 3 year & upto 5 years | 6.25 | 6.82 | 6.75 | 5.25 | 5.65 |
