After making its home and auto loans a bit cheaper, the State Bank of India – India's largest bank – has slashed its fixed deposit (FD) rates by 25 basis points across most maturities, effecting from November 1, 2017.
After making its home and auto loans a bit cheaper, the State Bank of India – India’s largest bank – has slashed its fixed deposit (FD) rates by 25 basis points across most maturities, effecting from November 1, 2017. For instance, retail domestic term deposits (below Rs 1 crore) of less than 2 years will now fetch interest rates of up to 6.25% as against 6.5% earlier, while deposits ranging from 2 years to 10 years will fetch 6% interest as against 6.25% earlier. Similarly, term deposits made by senior citizens of less than 2 years will fetch interest up to 6.75%, while deposits between 2 years and 10 years will give 6.50% return.
According to the bank, the interest rate payable to the SBI staff and SBI pensioners will be 1% above the applicable rate. The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
SBI Fixed Deposits (All Figures In % Per Annum)
Like SBI, some other banks have also revised their FD rates recently. For example, on domestic, NRO and NRE term deposits of below Rs 1 crore, HDFC Bank is offering 6% interest on deposits for 6 months 1 day to 9 months 15 days, 6.75% interest on deposits for 1 year, and 6% interest on deposits of 2 years 1 day to 10 years. Senior citizens, on the other hand, will get 7.25% on deposits for 1 year and 6.50% on deposits ranging from 2 years 1 day to 10 years. They will earn 6.75% on deposits for 1 year 4 days up to 2 years.
HDFC Bank Domestic / NRO / NRE TERM DEPOSITS
ICICI Bank Domestic, NRO & NRE Deposits
You also need to remember that the minimum amount that can be deposited as an FD is usually around Rs 10,000. However, the non-callable deposit facility is applicable only on deposits of over Rs 15 lakh. “FD is an ideal investment option for an investor who is looking at fixed and assured regular income. It’s a very good senior citizen’s product. However, keep in mind that FDs are more of a savings product than an investment product. Net of tax, the real return from fixed deposits tend to be lower than inflation at most times,” says Navin Chandani, CBDO, BankBazaar.com.