From ICICI Bank to Yes Bank, top 7 banks that are offering highest FD rates

Even a marginal difference of 40-50 basis points in interest rates can lead to substantial gains, especially for higher deposit amounts and longer tenures.

When opening a fixed deposit (FD), comparing interest rates across banks can significantly boost your savings. Even a marginal difference of 40-50 basis points in interest rates can lead to substantial gains, especially for higher deposit amounts and longer tenures.

Importance of interest rates and tenure

The interest rate and tenure of a fixed deposit play crucial roles in wealth accumulation. For instance, an additional 50 basis points on a two-year FD of Rs 5 lakh can earn you an extra Rs 5,000. Over a five-year term, this difference could grow to Rs 12,500, illustrating the impact of choosing the right bank and tenure for your investment.

Interest rates on five-year fixed deposits:

Here's a comparison of interest rates offered by leading public and private sector banks on five-year FDs for regular and senior citizens:

Bank       Regular (%)      Senior Citizens (%)
HDFC Bank     7             7.5
ICICI Bank      7             7.5
Axis Bank       7             7.75
Yes Bank        7.25        8
SBI                6.5          7.5
Bank of Baroda    6.8    7.4
PNB              6.5           7

Key highlights:

Private Banks: Yes Bank leads with a rate of 7.25% for regular citizens and 8% for senior citizens, making it an attractive option for long-term deposits.

Axis Bank: Offers competitive rates of 7% for regular citizens and 7.75% for senior citizens.

HDFC and ICICI Banks: Both offer similar rates of 7% for regular depositors and 7.5% for senior citizens, providing reliable options for steady returns.

Public Sector Banks: SBI and PNB offer slightly lower rates at 6.5% for regular deposits, while senior citizens can earn up to 7.5% at SBI. Bank of Baroda offers marginally higher rates at 6.8% and 7.4%, respectively.

Why compare?

While most banks offer similar rates, the marginal differences can add up over time, especially for large deposits. Senior citizens, in particular, can benefit from higher interest rates, making it essential to evaluate options before locking in your funds.