Bank FDs guarantee a fixed interest rate irrespective of market uncertainties, say financial expertsBank fixed deposits or FDs are the preferred choice of investment for a rather traditional investor.
In other words, individuals with low risk-appetite often find bank fixed deposits to be an attractive instrument for their surplus savings.
Reason Bank FDs offer fixed, guaranteed returns, in contrast to usually higher returns in case of equity and equity-related investments.
Financial planners say that retail investors looking to minimise their risk at the cost of higher returns can look at bank deposit with the bank of their choice.
Most leading banks today, from public sector State Bank of India (SBI) to private sector peers HDFC Bank and ICICI Bank, offer an interest rate ranging from 6.6 per cent to 7.35 per cent for a tenure of one year, according to an analysis of interest rates displayed on their websites.Here's a comparison of fixed deposit (FD) interest rates you can earn by setting up a fixed deposit at SBI, HDFC Bank and ICICI Bank:State Bank of India (SBI)State Bank of India last revised its interest rates on retail domestic term deposits - or bank FD - up to Rs 1 crore on May 28, 2018, according to its corporate website -sbi.co.in.
The country's largest bank offers0.50 per cent higher interest rates across tenures to senior citizens.Here are various interest rates offered by SBI on its fixed deposits up to Rs 1 crore:TenorsInterest rate (in per cent) for public w.e.f.
28.05.2018Interest rate for senior citizens w.e.f.
28.05.20187 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than 2 year6.657.152 years to less than 3 years6.657.153 years to less than 5 years6.77.25 years and up to 10 years6.757.25(Source: sbi.co.in)ICICI BankICICI Bank offers the following interest rates against fixed deposits (with premature withdrawal facility) up to Rs 1 crore, as given on the bank's website -icicibank.com.These include deposits bydomestic, NRO (non-resident ordinary) and NRE (non-resident external) customers:Rate of Interest (% p.a.) w.e.f June 07, 2018TenureGeneral publicSenior Citizen7 days to 14 days44.515 days to 29 days4.254.7530 days to 45 days5.5646 days to 60 days5.756.2561 days to 90 days66.591 days to 120 days66.5121 days to 184 days66.5185 days to 289 days6.256.75290 days to less than 1 year6.571 year to 389 days6.67.1390 days to 2 years6.757.252 years 1 day upto 5 years77.55 years 1 day upto 10 years77.55 Years Tax saver FD(Max upto Rs.
1.50 lac)77.5(Source: icicibank.com)(: Bank Fixed Deposits Vs Corporate Fixed Deposits: Interest Rates, Taxation, Risks)HDFC BankWith effect from July 6, 2018, HDFC Bank offers the following interest rates to the general public and senior citizens, as given on its website - hdfcbank.com.(: Recurring Deposit (RD) Interest Rates Of These Banks Are As High As 9%)Rate of Interest (% p.a.) w.e.f July 6, 2018TenureInterest rate for general publicInterest rate for senior citizen7 - 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%(Source: hdfcbank.com)