Fixed deposits have been the financial instrument of choice for long among investors with a rather low risk appetite. These deposits - also known as term deposits - provide a "fixed", guaranteed return on funds held in a commercial bank for a pre-defined period of time - also known as lock-in period. Currently, the country's top banks give annual returns to the tune of 2.5-6.3 per cent on retail fixed deposits, which are term deposits up to Rs 2 crore. State Bank of India, HDFC Bank, ICICI Bank and Kotak Mahindra Bank, the country's largest banks by market value, pay slightly higher returns to senior citizens compared to other customers, and change their interest rates from time to time, to align them with benchmarks, among other factors.
Here are the current annual returns on retail FDs offered by top banks:
SBI Fixed Deposit Rates
| Maturity Period | Interest Rate With Effect From September 10 |
|---|
| Public | Senior citizen |
| Seven days to 45 days | 2.9% | 3.4% |
| 46 days to 179 days | 3.9% | 4.4% |
| 180 days to 210 days | 4.4% | 4.9% |
| 211 days to less than one year | 4.4% | 4.9% |
| One year to less than two years | 4.9% | 5.4% |
| Two years to less than three years | 5.1% | 5.6% |
| Three years to less than five years | 5.3% | 5.8% |
| Five years and up to 10 years | 5.4% | 6.2% |
| (Source: sbi.co.in) |
HDFC Bank Fixed Deposit Rates
| Maturity Period | Interest Rate (With Effect From November 13) |
|---|
| Public | Senior citizen |
| Seven days to 14 days | 2.50% | 3.00% |
| 15 days to 29 days | 2.50% | 3.00% |
| 30 days to 45 days | 3.00% | 3.50% |
| 46 days to 60 days | 3.00% | 3.50% |
| 61 days to 90 days | 3.00% | 3.50% |
| 91 days to six months | 3.50% | 4.00% |
| Six months one day to nine months | 4.40% | 4.90% |
| Nine months one day to less than one year | 4.40% | 4.90% |
| One year | 4.90% | 5.40% |
| One year one day to two years | 4.90% | 5.40% |
| Two years one day to three years | 5.15% | 5.65% |
| Three years one day to five years | 5.30% | 5.80% |
| Five years one day to 10 years | 5.50% | 6.25% |
| (Source: hdfcbank.com) |
ICICI Bank Fixed Deposit Rates
| Lock-In | Interest Rate With Effect From October 21 |
|---|
| Public | Senior citizen |
| Seven to 14 days | 2.50% | 3% |
| 15 to 29 days | 2.50% | 3% |
| 30 to 45 days | 3% | 3.50% |
| 46 to 60 days | 3% | 3.50% |
| 61 to 90 days | 3% | 3.50% |
| 91 to 120 days | 3.50% | 4% |
| 121 to 184 days | 3.50% | 4% |
| 185 to 210 days | 4.40% | 4.90% |
| 211 to 270 days | 4.40% | 4.90% |
| 271 to 289 days | 4.40% | 4.90% |
| 290 days to less than one year | 4.40% | 4.90% |
| One year to 389 days | 4.90% | 5.40% |
| 390 days to less than 18 months | 4.90% | 5.40% |
| 18 months and one day to two years | 5% | 5.50% |
| Two years and one day to three years | 5.15% | 5.65% |
| Three years and one day to five years | 5.35% | 5.85% |
| Five years and one day to 10 years | 5.50% | 6.30% |
| Five years tax-saver FD (maximum Rs 1.50 lakh) | 5.35% | 5.85% |
| (Source: icicibank.com) |
Kotak Mahindra Bank Fixed Deposit Rates
| Maturity Period | Interest Rate With Effect From November 4 |
|---|
| Seven to 14 days | 2.50% |
| 15 to 30 days | 2.50% |
| 31 to 45 days | 2.75% |
| 46 to 90 days | 2.75% |
| 91 to 120 days | 3.50% |
| 121 to 179 days | 3.50% |
| 180 days | 4.50% |
| 181 to 269 days | 4.50% |
| 270 days | 4.50% |
| 271 to 363 days | 4.50% |
| 364 days | 4.50% |
| 365 to 389 days | 4.60% |
| 390 days (12 months and 25 days) | 4.90% |
| 391 days to less than 23 months | 4.90% |
| 23 months | 4.90% |
| 23 months and one day to less than two years | 4.90% |
| Two years to less than three years | 4.90% |
| Three years and above but less than four years | 4.90% |
| Four years and above but less than five years | 4.75% |
| Five years and above up to 10 years | 4.50% |
| (Source: kotak.com) |
This year, the RBI has reduced the repo rate - or the key interest rate at which it lends money to banks - by a total of 115 basis points since February, on top of 135 basis points last year. This has also forced banks to lower their FD rates.
