Top banks offer higher interest rates on fixed deposits than savings bank accountsMajor banks State Bank of India (SBI), HDFC Bank and ICICI Bank offer many personal banking products such as savings accounts, recurring deposit (RD) accounts and fixed deposit (FD) accounts.
Savings accounts help customers save and park their money safely with the bank.
Interest rates on savings banks accounts are modest.
Fixed deposit accounts make customers fix a particular deposit of money for a given tenure, which means the money is locked for a term chosen by the customer.
Interest rates on fixed deposit accounts are generally higher compared with savings bank accounts.
Fixed deposits with lock-in periods of five or ten years but without a premature withdrawal facility offer income tax benefits.
Recurring deposits or RD accounts enable customers to build their wealth via regular savings at periodic intervals.
The interest rates on recurring deposits are as attractive as on fixed deposits.Here's a comparison of interest rates offered by the three major banks on these products:SBI savings account interest ratesParticularsRate of InterestSaving deposits of balance up to Rs.
1 crore3.50%Saving deposits of balance above Rs.
1 crore4.00%(: These Banks Pay Up To 7.25% Interest Rates On Savings Accounts)SBI fixed deposit interest ratesTenorsRevised For Public w.e.f.
28.05.2018Revised for Senior Citizens w.e.f.
28.05.20187 days to 45 days5.75%6.25%46 days to 179 days6.25%6.75%180 days to 210 days6.35%6.85%211 days to less than 1 year6.4%6.9%1 year to less than 2 year6.65%7.15%2 years to less than 3 years6.65%7.15%3 years to less than 5 years6.7%7.2%5 years and up to 10 years6.75%7.25%SBI recurring deposit interest ratesSBI offers the same interest onrecurring deposit as fixed deposits.ICICI Bank savings account interest ratesWith effective from August 19, 2017, the savings account interest rate on ICICI Bank accounts would be applicable as follows:3.5 per cent for end of day account balance below Rs 50 lakh4 per cent for end of day account balance of Rs 50 lakh and aboveICICI Bank fixed deposit interest ratesTenure PeriodRate of Interest w.e.fJune07, 2018GeneralSenior Citizen*7 days to 14 days4%4.5%15 days to 29 days4.25%4.75%30 days to 45 days5.5%6%46 days to 60 days5.75%6.25%61 days to 90 days6%6.5%91 days to 120 days6%6.5%121 days to 184 days6%6.5%185 days to 289 days6.25%6.75%290 days to less than 1 year6.5%7%1 year to 389 days6.6%7.1%390 days to 2 years6.75%7.25%2 years 1 day upto 5 years7%7.5%5 years 1 day upto 10 years7%7.5%5 Years Tax saver FD(Max upto Rs.
1.50 lac)7%7.5%(: Post Office Saving Schemes Offer Interest Rates Of 4%-8.3%)ICICI Bank recurring deposit interest ratesMaturity PeriodRate of Interest w.e.fJune7, 2018GeneralSenior Citizen6 months6%6.5%9 months6.25%6.75%12 months6.6%7.1%15 months6.75%7.25%18 months6.75%7.25%21 months6.75%7.25%24 months6.75%7.25%27 months7%7.5%30 months7%7.5%33 months7%7.5%36 months7%7.5%Above 3 years upto 5 years7%7.5%Above 5 years upto 10 years7%7.5%HDFC Banksavings account interest ratesHDFC Bank offers an interest rate of 4 per cent on balances of Rs.
50 lakh and above in savings accounts.On balances below Rs 50 lakh, the bank offers an interest rate of 3.50 per cent.HDFC Bank fixed deposit interest ratesPeriod< 1 CroreInterest Rate(per annum)**Senior Citizen Rates(per annum)7 - 14 days3.50%4.00%15 - 29 days4.25%4.75%30 - 45 days5.75%6.25%46 - 60 days6.25%6.75%61 - 90 days6.25%6.75%91 days - 6 months6.25%6.75%6 mnths 1 day- 6 mnths 3 days6.35%6.85%6 mnths 4 days6.35%6.85%6 mnths 5 days- 9 mnths6.40%6.90%9 mnths 1 day- 9 mnths 3 days6.40%6.90%9 mnths 4 days6.40%6.90%9 months 5 days - 9 months 15 days6.40%6.90%9 months 16 days6.40%6.90%9 months 17 days < 1 Year6.40%6.90%1 Year6.85%7.35%1 year 1 day - 1 year 3 days6.65%7.15%1 year 4 days6.65%7.15%1 year 5 days - 1 Year 15 Days6.65%7.15%1 Year 16 days6.65%7.15%1 year 17 days - 2 Years7.00%7.50%2 years 1day - 2 Years15 days7.00%7.50%2 Years16 days7.00%7.50%2 years17 days - 3 Years7.00%7.50%3 years 1day - 5 years7.00%7.50%5 Years 1 Day - 8 Years6.00%6.50%8 Years 1 Day - 10 Years6.00%6.50%HDFC Bank recurring deposit interest ratesPeriodInterest Rate (per annum)**Senior Citizen Rates (per annum)Effective From6 Months6.25%6.75%June 06,20189 Months6.40%6.90%June 06,201812 Months6.85%7.35%Apr 24,201815 Months7.00%7.50%Apr 24,201824 Months7.00%7.50%Apr 24,201827 Months7.00%7.50%Apr 24,201836 Months7.00%7.50%Apr 24,201839 Months7.00%7.50%Apr 24,201848 Months7.00%7.50%Apr 24,201860 Months7.00%7.50%Apr 24,201890 Months6.00%6.50%Jan 06,2017120 Months6.00%6.50%Jan 06,2017When you think of investing your money, always understand the implications of interest rates and tenures on your deposits, say financial planners.