|FD Scheme||Interest Rate||Senior Citizen Rates|
|Fincare Small Finance Bank FD||8.61 %||9.21 %|
|Ujjivan Small Finance Bank FD||8.3 %||8.8 %|
|AU Small Finance Bank FD||8 %||8.5 %|
|IndusInd Bank FD||7.85 %||8.6 %|
|Bandhan Bank FD||7.85 %||8.35 %|
|IDFC First Bank FD||7.75 %||8.25 %|
|Post Office FD||7.5 %||7.5 %|
|Punjab National Bank FD||7.3 %||7.8 %|
|Kotak Mahindra Bank FD||7.25 %||7.75 %|
|Indian Overseas Bank FD||7.25 %||7.75 %|
|Indian Bank FD||7.25 %||7.75 %|
|Canara Bank FD||7.25 %||7.75 %|
|Bank of India FD||7.25 %||7.75 %|
|Bank of Baroda FD||7.25 %||7.75 %|
|HDFC Bank FD||7.2 %||7.7 %|
|IDBI Bank FD||7.15 %||7.65 %|
|State Bank of India FD||7.1 %||7.6 %|
|ICICI Bank FD||7.1 %||7.6 %|
|Axis Bank FD||7.1 %||7.6 %|
|Union Bank of India FD||7 %||7.5 %|
Characteristics of Fixed Deposits from Banks
Fixed deposits are a popular and safe investment option in India. They offer guaranteed returns and are not affected by market fluctuations. However, the interest rates of fixed deposits are not fixed and can change over time. Several factors influence the interest rates of fixed deposits in India, such as
The Reserve Bank of India (RBI) is India’s central bank and regulates the country’s monetary policy. The RBI sets the repo rate to lend money to commercial banks. The repo rate affects the cost of funds for banks and influences the interest rates they offer on fixed deposits.
Inflation is the general increase in the prices of goods and services over time. Inflation reduces the purchasing power of money and affects the real returns of fixed deposits. When inflation is high, fixed deposit interest rates tend to be high as well, as investors demand higher returns to compensate for the loss of value of money. When inflation is low, fixed deposit interest rates tend to be low.
The country’s economic conditions also affect fixed deposit interest rates. When the economy grows, more credit and investment demand increases interest rates. When the economy slows, there is less credit and investment demand, resulting in lower interest rates.
The amount of money deposited in a fixed deposit also influences the interest rate banks offer. Generally, banks offer higher interest rates for larger deposits and lower interest rates for smaller deposits. This is because larger deposits help banks maintain their liquidity and profitability, while smaller deposits increase operational costs.
The duration of a fixed deposit also affects the interest rate banks offer. Generally, banks offer higher interest rates for longer tenures and lower interest rates for shorter tenures. This is because longer tenures allow banks to lock in funds for a longer period and earn more interest income, while shorter tenures increase their liquidity risk and opportunity cost.