FD Interest Rates: These 7 banks offer the highest interest on their fixed deposits

If you plan to tie up your savings in a fixed deposit (FD) it is reasonable to check the interest rates of different banks. Although most savers prefer one term account with a bank with which they have a long-term banking relationship, one can consider choosing a new bank as long as the interest rate difference is significant.

Here we list the highest interest rates offered by the top seven banks across different terms. It is worth mentioning here that high interest rates are usually offered term deposits with a long term. This means a shorter term, a lower interest rate, and a longer term, a higher interest rate.

Highest fixed deposit interest rates among the seven largest banks

HDFC Bank: The private bank offers 7.40 percent interest on its fixed deposit with a term between 4 years and 7 months to 55 months to regular savers. Seniors are entitled to 7.90 percent over this term, according to the rates introduced on July 24, 2024.

ICICI Bank offers 7.25 percent to ordinary citizens and 7.8 percent to seniors with a fixed deposit of 15 to 18 months.

Kotak Mahindra Bank: Another private lender Kotak Mahindra Bank offers the highest interest rate of 7.4 percent to ordinary citizens on a fixed deposit of 390 to 391 days. Seniors are offered an additional 50 basis points, or 7.9 percent. These interest rates came into effect on June 14, 2024.

Federal bank: It offers an interest rate of 7.4 percent and 7.9 percent to ordinary citizens and senior citizens, respectively, on a fixed deposit of 777 days, as per the rates that came into effect on October 16, 2024.

State Bank of India (SBI): The largest bank in the country offers 7 percent and 7.5 percent interest to general and senior citizens with FD term between 2 and 3 years. These rates came into effect on June 15, 2024.

Bank of Baroda: BOB offers 7.3 percent and 7.8 percent on a 400-day FD, according to the rates announced on October 14 this year.

Union Bank of India: This state lender offers ordinary citizens an interest rate of 7.3 percent on a fixed deposit of 456 days. Seniors receive an additional 50 basis points.