– Arista Menezes & Tanisha Khimavat
The Reserve bank of India has paused the hike in repo rates, which is beneficial for the general public and senior citizens encouraging them to invest more while the banks increasing their FD rates to benefit their customers with the best interest returns.
Fixed deposits require a single sum investment at one time unlike Recurring deposits which requires to invest a specific amount of money every month until the end of the tenure. The interest earned on bank fixed deposits are taxable. Interest rates on fixed deposits vary depending on the amount category of investors and tenure.
Fixed deposit rates for general citizens by some of the top banks like SBI is 3%- 7.10%, Bank of Baroda is 3%- 7.25%, Canara Bank is 4%- 7.25% and Union Bank is 3% – 7%. Similarly, FD rates for senior citizens from top Indian banks like SBI is 3.50%-7.75%, Bank of Baroda is 3.50%-7.75%, Canara Bank is 4%-7.75%, and Union Bank is 3.50%-7.50%.
Here is a comparison of Fixed deposit rates by the top 10 banks in size.
The minimum and maximum FD interest rates offered with tenures between 7 days to 10 years for amounts below Rs. 2 crore is considered here. (Latest interest rates are as on August 11, 2023. Source: Bank websites)
| Bank’s Name | General Public | Senior Citizens |
| Bank of Baroda | 3.00% – 7.25% | 3.50% – 7.75% |
| State Bank of India | 3.00% – 7.10% | 3.50% – 7.30% |
| Canara Bank | 4.00% – 7.25% | 4.00% – 7.75% |
| Union Bank | 3.00% – 7.00% | 3.50% – 7.50% |
| Punjab National Bank | 3.50% – 7.30% | 4.00% – 7.80% |
| Punjab & Sind Bank | 2.80% – 7.35% | 3.30% – 7.85% |
| Bank of India | 3.00% – 7.30% | 3.30% – 7.80% |
| Bank of Maharashtra | 2.75% – 7.00% | 2.75% – 7.50% |
| Indian Overseas Bank | 4.00% – 7.25% | 4.75% – 7.75% |
| Indian Bank | 2.80% – 7.10% | 2.80% – 7.25% |
