• Post last modified:September 2, 2020
  • Reading time:7 min(s) read

A fixed deposit is one of the most popular investment options especially with senior citizens due to guaranteed returns & the safety it offers over other investment products like equity, bonds, etc.

While, the deposit products are considered 100% secure, however, citing the problems faced by depositors of some banks in withdrawing their money due to restrictions imposed by RBI on these banks, many depositors choose only large banks to park their deposits even if they have to forego some of the interest income. 

Banks offer fixed deposits ranging from 7 days to 10 years and the rate of interest vary with tenure of the deposit. We have compiled the interest rates offered by some of the largest banks i.e.

  • State Bank of India- The largest Public Sector Bank
  • HDFC Bank – The largest Private Sector Bank
  • Punjab National Bank- The largest Nationalised Bank

Fixed Deposit Rates of SBI (State Bank of India)

SBI is the largest Public Sector Bank of India and as on 31.03.2020 –

  • The bank has 22141 branches & 58555 ATMs across India.
  • The total deposit stood at Rs. 32.42 lakh crores.

The Fixed Deposit rates of SBI for Retail Domestic Term Deposits upto Rs 2.00 Cr (Rupees Two Crores) is as under:

Period of DepositRate of Interest for Individuals (% per annum)Rate of interest for Senior Citizens (% per annum)
7 Days to 45 days2.903.40
46 Days to 179 days3.904.40
180 Days to 210 days4.404.90
211 Days to less than 1 year4.404.90
1 year to less than 2 years5.105.60
2 year to less than 3 years5.105.60
3 year to less than 5 years5.305.80
5 year to less than 10 years5.406.20

The Fixed Deposit rates of SBI for Retail Domestic Term Deposits above Rs 2.00 Cr (Rupees Two Crores) is as under:

Period of DepositRate of Interest for Individuals (% per annum)Rate of interest for Senior Citizens (% per annum)
7 Days to 45 days2.903.40
46 Days to 179 days2.903.40
180 Days to 210 days2.903.40
211 Days to less than 1 year2.903.40
1 year to less than 2 years2.903.40
2 year to less than 3 years3.003.50
3 year to less than 5 years3.003.50
5 year to less than 10 years3.003.50

Fixed Deposit Rates of HDFC Bank

HDFC Bank is the largest Private Sector Bank of India and as on 31.03.2020 –

  • The bank has 5416 branches & 13640 ATMs across India. 
  • The total deposit stood at Rs. 11.47 lakh crores.

The Fixed Deposit rates of HDFC Bank for Retail Domestic Term Deposits upto Rs 2.00 Cr (Rupees Two Crores) is as under:

Period of DepositRate of Interest for Individuals (% per annum)Rate of interest for Senior Citizens (% per annum)
7 Days to 14 days2.503.00
15 Days to 29 days2.503.00
30 Days to 45 days3.003.50
46 Days to 60 days3.003.50
61 Days to 90 days3.003.50
91 Days to 6 Months4.004.50
6 Months 1 day to 9 months4.404.90
9 Months 1 day to < 1 year4.505.00
1 year 1 day to 2 years5.105.60
2 year 1 day to 3 years5.205.70
3 year 1 day to 5 years5.355.85
5 year 1 day to 10 years5.506.25*

*Additional rate of interest of 25 bps (i.e. 0.25%), over and above the premium of 50 bps (i.e. 0.50%) is offered by HDFC bank to Senior Citizens who want to book deposit for more than 5 years.

The Fixed Deposit rates of HDFC Bank for Retail Domestic Term Deposits above Rs 2.00 Cr (Rupees Two Crore) to less than Rs. 5.00 Cr (Rupees Five Crore) is as under:

Period of DepositRate of Interest for Individuals (% per annum)Rate of interest for Senior Citizens (% per annum)
7 Days to 14 days2.503.00
15 Days to 29 days2.503.00
30 Days to 45 days2.753.25
46 Days to 60 days2.753.25
61 Days to 90 days3.003.50
91 Days to 6 Months3.003.50
6 Months 1 day to 9 months3.504.00
9 Months 1 day to < 1 year4.004.50
1 year 1 day to 2 years4.254.75
2 year 1 day to 3 years4.505.00
3 year 1 day to 5 years4.505.00
5 year 1 day to 10 years4.505.25*

*Additional rate of interest of 25 bps (i.e. 0.25%), over and above the premium of 50 bps (i.e. 0.50%) is offered by HDFC bank to Senior Citizens who want to book deposit for more than 5 years.

Fixed Deposit Rates of PNB (Punjab National Bank)

PNB (Punjab National Bank) is the largest Nationalised Bank of India and as on 31.03.2020 –

The bank, after merger with OBC & UBI, has 11000+ branches & 13000+ ATMs across India.

The total deposit stood at Rs. 10.71 lakh crores (Consolidated after Merger of Oriental Bank of Commerce & United Bank of India).

The Fixed Deposit rates of Punjab National Bank for Retail Domestic Term Deposits below Rs 2.00 Cr (Rupees Two Crores) is as under:

Period of DepositRate of Interest for Individuals (% per annum)*Rate of interest for Senior Citizens (% per annum)
7 Days to 14 days3.003.75
15 Days to 29 days3.003.75
30 Days to 45 days3.003.75
46 Days to 90 days3.254.00
91 Days to 179 days4.004.75
180 Days to 270 days4.405.15
271 days to less than 1 year4.505.25
333 days4.505.25
1 year5.256.00
444 days5.256.00
Above 1 year & upto 2 years5.256.00
Above 2 years & up to 3 years5.256.00
Above 3 years & up to 5 years5.306.05
Above 5 years & up to 10 years5.306.05

*Deposit rate of PNB for Senior Citizens is 75 bps i.e. 0.75% over & above the rates offered to regular individuals.

The Fixed Deposit rates of Punjab National Bank for Retail Domestic Term Deposits above Rs 2.00 Cr (Rupees Two Crores) & up to Rs. 10.00 Cr. (Rupees Tem Crore) is as under:

Period of DepositRate of Interest for Individuals (% per annum)*Rate of interest for Senior Citizens (% per annum)
7 Days to 14 days2.902.90
15 Days to 29 days2.902.90
30 Days to 45 days2.902.90
46 Days to 90 days2.902.90
91 Days to 179 days2.902.90
180 Days to 270 days2.902.90
271 days to less than 1 year2.902.90
333 days2.902.90
1 year2.902.90
444 days2.902.90
Above 1 year & upto 2 years2.902.90
Above 2 years & up to 3 years2.902.90
Above 3 years & up to 5 years2.902.90
Above 5 years & up to 10 years2.902.90

*The benefit of an additional rate of interest for Senior Citizens is not available for Deposits above Rs. 2.00 cr. Further, the rate of interest offered for all tenures is flat at 2.90%.

Conclusion

After analyzing deposit rates being offered by SBI, HDFC Bank & PNB It has been observed that

  • For deposits below Rs. 2.00 cr and tenure up to 3 years, Deposit rate of PNB (Punjab National Bank) is highest to regular individuals for most of the tenures. Further, for Senior Citizens, PNB offers an additional rate of interest of 75 bps (i.e. 0.75%) as against 50 bps (i.e. 0.50%) offered by SBI & HDFC for most of the tenures. 

Hence, for a deposit up to Rs. 2.00 cr & tenure up to 3 years one should consider PNB.

  • For deposits below Rs. 2.00 cr and tenure of more than 3 years, Deposit rate of HDFC Bank is highest to regular individuals. Further, the bank offers an additional 25 bps (0.25%) to senior citizens for deposits more than 5 years, hence the rate of interest to senior citizens is the highest for more than 5 years.

Hence, for a deposit up to Rs. 2.00 cr & tenure for more than 3 years, one should consider HDFC Bank.

  • For deposits above Rs. 2.00 cr, if one intends to keep it for a shorter period i.e. up to 60 days, SBI & PNB offers a higher rate of interest. Further for more than 60 days, one should consider HDFC Bank.
  • For deposits above Rs. 2.00 cr, if one intends to keep it for a shorter period i.e. up to 60 days, SBI & PNB offers a higher rate of interest.
  • Further for more than 60 days, one should consider HDFC Bank.

P.S. In this article, we have compared the deposit rate of the three largest banks only. For deposit rates offered by various Tier-I & Tier-ll banks, you may refer to the detailed analysis in the article given below.

fixed deposit rates

Fixed Deposit Rates – Insights to Maximize Your Profits and Minimize Your Risk

Sources

https://www.sbi.co.in/documents/17836/1275616/05062020_Analyst+PPT+Q4FY20+%281%29.pdf/b28460b5-ef6e-6b16-d7f3-50a1cd7aeb8c?t=1591349753965

https://sbi.co.in/web/interest-rates/deposit-rates/retail-domestic-term-deposits

https://sbi.co.in/web/interest-rates/deposit-rates/domestic-bulk-term-deposits

https://www.hdfcbank.com/content/bbp/repositories/723fb80a-2dde-42a3-9793-7ae1be57c87f/?path=/Footer/About%20Us/Investor%20Relation/Detail%20PAges/inverstor%20relation/PDF%27s/Q3FY20%20Rev.pdf

https://www.hdfcbank.com/content/api/contentstream-id/723fb80a-2dde-42a3-9793-7ae1be57c87f/63901e95-d0b7-4aee-a522-07f73705d723?

https://www.hdfcbank.com/personal/resources/rates

https://www.pnbindia.in/downloadprocess.aspx?fid=Zu0vAs1Rv/cicTxP88flVQ==

https://www.pnbindia.in/Interest-Rates-Deposit.html


Read about the Voluntary Retirement Scheme (VRS) – 2020 approved by the SBI:

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