After decades of depreciating fixed deposit (FD) interest rates, the tide appears to be turning for FD investors. The State Bank of India (SBI) and HDFC Bank, two of the country's largest banks, increased the interest rates on fixed deposits last week (FDs).
In fact, this is the second time in the last month that HDFC Bank has raised its fixed-deposit rates. In the previous month, several Banks such as Bank of Baroda and Kotak Mahindra Bank have increased their Fixed Deposit interest rates.
SBI vs HDFC Bank Vs Kotak Mahindra Bank: FD interest rates
Below we have mentioned about top three banks & their FD Interest Rates.
HDFC Bank
The HDFC Bank has increased their interest rates on fixed deposits (FDs) for a select tenor. These rates will be effective from January 12, 2021. As per the bank’s website, it has raised the interest rates on the FDs worth less than Rs 2 crore with the maturities of above two by five- ten basis points.
According to the website, now the FDs with tenure between 2 years 1 day & 3 years will earn 5.2%, 3 years 1 day & 5 years will fetch the 5.4% and 5 years 1 day & 10 years will fetch 5.6%.
SBI: State Bank of India Bank
According to the official website of SBI: State Bank of India, the interest rate for the Fixed Deposit under Rs 2 crore with the duration of 1 years to less than 2 years has been increased by ten basis points.
With effect from January 15, 2022, these Fixed Deposits will now earn 5.1%, up from (5%). The senior citizens will now receive 5.6% of the total income, up from 5.5%.
Kotak Mahindra Bank
The Kotak Mahindra Bank has revised the interest rates with effect from January 6, 2022.
