FD interest rates: Top 5 banks offer over 7% annually on fixed deposits; check tenures here

Before opening a fixed deposit (FD) account, it is natural for depositors to compare the interest rates offered by different banks, as a result of which, the lenders that offer a higher rate of interest are preferred over others. It is noteworthy that Punjab National Bank and Bank of India recently revised their fixed deposit interest rates.

It is understandable that there is a greater propensity among depositors to opt for a bank in which they have a bank account, some depositors may still choose a new bank when the interest differential is substantial.

Here we give a lowdown on some of the top banks which offer the highest return on their fixed deposits (FDs) across tenures.

These banks offer highest interest rates across tenures

HDFC Bank: The largest private lender offers 7.35 percent on FD with tenure of 2 years and 11 months. Senior citizens are entitled to receive an extra 50 basis points i.e., 7.85 percent. The highest rate of 7.40 percent is offered on tenure of 4 years and 7 months. Meanwhile, senior citizens are entitled to receive 7.90 percent on their fixed deposits.

These rates came into effect on July 24, 2024.

ICICI Bank: The private lender offers the highest rate of 7.25 percent to its depositors on fixed deposits with tenure between 15 to 18 months. Senior citizens are entitled to receive an extra 55 basis points i.e., 7.80 percent per annum.

These rates came into effect on August 2, 2024.

(Source: Bank websites)

Punjab National Bank (PNB): The state lender offers the highest interest rate of 7.25 percent to its depositors on 400-day fixed deposits and 7.75 percent to senior citizens.

These rates came into effect on August 1, 2024.

Kotak Mahindra Bank: This private bank offers the highest interest rate of 7.4 per cent on fixed deposits of tenure between 390 days to less than 23 months. Senior citizens are entitled to receive 7.9 percent per annum on this tenure.

The latest rates came into effect on June 14, 2024.

Bank of Baroda: This state bank offers the highest interest rate of 7.25 per cent on fixed deposits of 399-day tenure. Senior citizen depositors are offered 7.75 percent (i.e., an extra 50 basis points) per annum on this tenure. These rates came into effect on July 15, 2024.