SBI, PNB, Bank of Baroda, Canara Bank, other PSU banks' FD interest rates: Which bank is offering highest return? We have compiled the latest fixed deposit interest rates offered by public sector banks in India. Check latest FD interest rates offered by SBI, Punjab National Bank, Bank of Baroda, Canara Bank, and other PSU banks here
With the Reserve Bank of India (RBI) hiking repo rates by 190 basis points or 1.9 per cent in a short period, banks have started passing on the benefits to fixed deposit (FD) investors gradually. Most banks have been increasing their interest rates on fixed deposits significantly in the last few months. “The increase in fixed deposit rates is a welcome step for pensioners and senior citizens who rely significantly on such passive income," said Ankit Jain, Partner, Ved Jain & Associates.Fixed deposits (FDs) in a public sector bank, continues to remain one of the most popular investment options in India. Fixed returns, good liquidity, and comparatively higher safety than the other investment options such as equity are the reasons for their immense popularity.
State Bank of India (SBI), the country’s largest lender, hiked interest on its fixed deposit by 90 basis points in October. Several banks such as Bank of Baroda, Punjab National Bank, and Canara Bank have introduced special fixed deposit schemes with attractive interest rates. Investors can earn up to 7-7.25 per cent from fixed deposits. For senior citizens, the interest from the fixed deposit scheme can go up to 7.5-7.75 per cent.
As the interest rates of fixed deposits are revised very frequently, it is better to compare the latest rates offered by the lenders before choosing one.
Here are the latest fixed deposit interest rates offered by the public sector banks in India
Bank6 months 1 day 1 year to 2 to 3 to 5 years and aboveBank of Baroda4.65 5.5-5.75 5.55-65.655.65Bank of India4.6 5.75 - 6.3 5.75-7.25 6.25# 5.75#Bank of Maharashtra5 5.4-5.75.55.55.5Canara Bank5.5 6.25-76.256.56.5Central Bank of India 4.65-4.75 5.55-5.75 5.6-6.255.55.6Indian Bank 4.5-4.75 6.1-6.36.56.46.4Indian Overseas Bank4.65 5.7-5.85 5.7-65.855.85Punjab National Bank5.5 6.3-76.256.16.1Punjab & Sind Bank 4.8-5.25 5.8-6.10 6.25-76.16.1Union Bank of India 4.40-5.25 6.3-76.76.76.7UCO Bank4.45.35.35.65.3State Bank of India5.56.16.256.16.1#Minimum Deposit = Rs 1 lakh
(Data taken from the respective bank's website as on November 3, 2022)
FD interest rates to increase further?
As banks have not passed on entire rate hikes to fixed deposit investors yet, the interest rate on FDs is likely to increase further in the coming months, say experts. "With inflation still on the higher side and central banks globally continuing with rate hikes, the FD interest rates will continue to see an upswing in the coming months. The transmission of rate hikes to FDs is slower and may not be 100 per cent, but the combination of reduced liquidity and sustained rise in key policy rates are expected to keep the FD rates inching higher. We anticipate that the rates may go up to 8-9 per cent over the next few months if this situation continues," said Pankaj Bansal, Chief Business Officer, Bankbazaar.com.
This story originally appeared on: India Times - Author:Faqs of Insurances
