A fixed deposit (FD), is known as a great investment instrument, because of its assurance factor. Investors, who are not quite open to risks are mostly interested in FDs.
Senior citizens also like FDs because they get higher interest rates. Additionally, FDs are also known to be a good emergency fund option.By Kuntala Sarkar
ICICI Bank
For ICICI Bank account holders, for 1 year to 389 days FD rate for public is 5.35% and 5.85% for senior citizens, 2 years 1 day to 3 years FD rate for public is 5.50% and 6.00% for senior citizens, and 3 years 1 day to 5 years FD rate for public is 5.70% and 6.20% for senior citizens. These interest rates are applicable for the domestic deposit for less than Rs. 5 core, by the said private bank.
AXIS Bank
For Axis Bank account holders, for 1 year < 1 year 5 days FD rate for public is 5.45% and 6.10% for senior citizens, 2 years < 30 months FD rate for public is 5.70% and 6.35% for senior citizens, 3 years < 5 years FD rate for public is 5.60% and 6.35% for senior citizens. These interest are applicable for the domestic deposit for less than Rs. 2 core.
HDFC Bank
For HDFC Bank account holders, for 1 Year FD rate is 5.35% and 5.85% for senior citizens, 1 year 1 day – 2 years FD rate is 5.35% and 5.85% for senior citizens, 3 year 1 day- 5 years FD rate is 5.70% and 6.20% for senior citizens. These interest are applicable for the domestic deposit for less than Rs. 2 core.
However, watching the current repo rate hike by the RBI, investors should be thoughtful about the amount and tenure of the FD investment.
Best interest rate on FDs by these private banks: comparison
| Bank | Tenure | Interest rate for public | Interest rate for senior citizens |
|---|---|---|---|
| ICICI Bank | 3 years 1 day to 5 years | 5.70% | 6.20% |
| AXIS Bank | 3 years < 5 years | 5.60% | 6.35% |
| HDFC Bank | 3 year 1 day- 5 years | 5.70% | 6.20% |
Hence, in the long term, for upto 5 years, senior citizens are getting better interest rates from Axis bank, while general public will attract interest rate in the same tenure from ICICI Bank and HDFC bank.