The RBI's 100 basis points cuts which have lowered the repo rate to 5.5% this year has led to a decline in fixed deposit (FD) interest rates, impacting investors and senior citizens reliant on stable income. Banks have reduced FD rates, with cuts ranging from 30-70 bps since February, when the rate-cut cycle began.
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As banks offer varying interest rates, it is crucial to choose the right one to maximize FD earnings. Here's a list of top private and public sector banks offering the best rates on a three -year FD of up to Rs 1 crore. The list is based on data compiled by BankBazaar as of July 25. The rates are for resident, retail and non-senior citizens and we've calculated the returns on a Rs 1-lakh investment.
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IndusInd Bank offers an interest rate of 6.75 percent on FDs with a three-year tenor. Among private banks, IndusInd offers the best interest rate. In three years, a Rs 1-lakh FD would grow to Rs 1.20 lakh.
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Axis Bank and ICICI Bank offer an interest rate of 6.6 percent for a three-year FD. A Rs 1-lakh deposit with them will grow to Rs 1,19, 800 on the date of maturity.
HDFC Bank and Kotak Mahindra Bank offer an interest rate of 6.4 percent for a three-year FD. It means that Rs 1 lakh will become Rs 1.19 lakh on the date of maturity.
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Canara Bank offers an interest rate of 6.5 percent on a three-year FD. Among public sector banks, this is the best interest rate. In three years, a Rs 1-lakh FD would grow to Rs 1, 19, 500.
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Bank of Baroda and Union Bank of India offer an interest rate of 6.4 percent on FDs with a tenor of three years. A Rs 1-lakh FD would grow to Rs 1,19, 200.
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State Bank of India offers an interest rate of 6.3 percent for a three-year FD, which will see a Rs 1 lakh grow to Rs 1,18,900 on the date of maturity.
Punjab National Bank offers an interest rate of 6.1 percent for a three-year FD. It would mean that Rs 1 lakh becomes Rs 1,18,300 on the date of maturity.
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The Deposit Insurance and Credit Guarantee Corporation, a RBI subsidiary, guarantees investments in fixed deposits of up to Rs 5 lakh.
