<aside> <img src="/icons/forward_red.svg" alt="/icons/forward_red.svg" width="40px" /> The longer the loan tenure, HDFC moves closer in terms of higher interest rates to the top choice, i.e., DCB Bank. For lower loan tenures, there are several better options than HDFC in both the public and private sector.
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| Bank | General Public Interest Rates p.a. | Senior Citizen Interest Rates p.a. |
|---|---|---|
| Axis Bank | 3.00% to 7.10% | 3.50% to 7.75% |
| Bandhan Bank | 3.00% to 7.85% | 3.75% to 8.35% |
| Bank of Baroda | 3.00% to 7.25% | 3.50% to 7.75% |
| Canara Bank | 4.00% to 7.25% | 4.00% to 7.75% |
| Central Bank of India | 3.50% to 6.75% | 4.00% to 7.25% |
| HDFC Bank | 3.00% to 7.20% | 3.50% to 7.75% |
| ICICI Bank | 3.00% to 7.10% | 3.50% to 7.65% |
| IDBI Bank | 3.00% to 6.80% | 3.50% to 7.30% |
| IDFC FIRST Bank | 3.00% to 7.75% | 3.50% to 8.25% |
| IndusInd Bank | 3.50% to 7.85% | 4.25% to 8.25% |
| Karnataka Bank | 3.50% to 7.25% | 3.50% to 7.75% |
| Kotak Mahindra Bank | 2.75% to 7.25% | 3.25% to 7.75% |
| Punjab National Bank | 3.50% to 7.25% | 4.00% to 7.75% |
| RBL Bank | 3.50% to 8.00% | 4.00% to 8.50% |
| South Indian Bank | 2.90% to 7.30% | 3.40% to 7.50% |
| State Bank of India | 3.00% to 7.10% | 3.50% to 7.60% |
| Tamilnad Mercantile Bank | 5.25% to 7.00% | 5.25% to 7.50% |
| UCO Bank | 2.90% to 6.50% | 3.15% to 7.00% |
| Union Bank of India | 3.00% to 7.00% | 3.50% to 7.50% |
| YES Bank | 3.25% to 7.75% | 3.75% to 8.25% |
https://economictimes.indiatimes.com/wealth/invest/fd-interest-rates-8-fd-rate-in-traditional-banks-where-will-you-get-the-best-return-public-sector-or-private-banks/articleshow/100268637.cms
For an FD tenure of three years, the State Bank of India (SBI) offers an interest rate of 6.5 per cent. Punjab National Bank offers an interest rate of 7 per cent on deposits with similar tenure. For a three-year FD, the interest rate goes to 7.3 per cent in Union Bank. Meanwhile, DCB Bank offers the highest interest rate of 8 per cent on fixed deposits maturing in three years. The next best interest rate that investors can earn is 7.75 per cent in IndusInd Bank. HDFC Bank, ICICI Bank, and Axis Bank
| Bank Name | Interest rate (per annum) (%) | ||||
|---|---|---|---|---|---|
| 6-months tenure | 1-year tenure | 2-year tenure | 3-year tenure | 5-year tenure | |
| Public Sector Banks | |||||
| Bank of India | 5 | 6 | 6.75 | 6.5 | 6 |
| Canara Bank | 6.25 | 7 | 6.85 | 6.8 | 6.7 |
| Indian Bank | 3.85 | 6.1 | 6.7 | 6.25 | 6.25 |
| Indian Overseas Bank | 4.95 | 6.5 | 6.8 | 6.5 | 6.5 |
| Punjab National Bank | 5.5 | 6.8 | 6.8 | 7 | 6.5 |
| State Bank of India | 5.25 | 6.8 | 7 | 6.5 | 6.5 |
| Union Bank | 4.4 | 6.3 | 6.3 | 7.3 | 6.7 |
| Private Sector Banks | |||||
| Bandhan Bank | 4.5 | 7.25 | 7.25 | 7.25 | 5.85 |
| City Union Bank | 6 | 6.75 | 6.5 | 6.25 | 6.5 |
| DCB Bank | 6.25 | 7.25 | 8 | 8 | 7.75 |
| HDFC Bank | 4.5 | 6.6 | 7 | 7 | 7 |
| ICICI Bank | 4.75 | 6.7 | 7.1 | 7 | 6.9 |
| IndusInd Bank | 5 | 7.5 | 7.75 | 7.75 | 7.25 |
| IDFC First Bank | 5 | 6.75 | 7.75 | 7 | 7 |
| Kotak Mahindra Bank | 7 | 7.1 | 7 | 6.5 | 6.2 |
| RBL Bank | 7 | 7 | 7 | 7 | 7 |
| YES Bank | 4.75 | 7.5 | 7.75 | 7 | 7 |
| IDBI Bank | 4.75 | 6.75 | 6.75 | 6.75 | 6.5 |
| Axis Bank | 5.75 | 6.8 | 7.2 | 7 | 7 |
Above rates are for general citizens as on May 13,2023
For deposits below Rs 2 crore (callable options)
Interest compounded quarterly
Excluded tax-save fixed deposits as the limit is Rs 1.5 lakh
Source: Bank websites
Medium-term FD in private banks have an edge
For two to three years fixed deposits, currently the interest rate is in the range of 6-7 per cent in public sector banks. However, the interest rates on medium-term FDs are in the range of 7-8 per cent in the private sector banks.
For long-term FDs, both offer competitive rates
For longer tenure FDs, the difference between the interest rates offered by the public sector banks and private sector banks is marginal.
The gap between the interest rate on short-term deposits and longer-term deposits exists due to the embedded expectation by depositors that inflation would remain high in the short term and hence in order to attract short term deposits the banks are offering higher interest on them while on a longer-term basis, banks expect repo rates to cool down due to inflation targeting by RBI