Given the current financial landscape that lends immense volatility to the stock markets and also offers rising interest rates on fixed income instruments such as FDs, you as a conservative investor can park your short-term funds in FDs by HDFC bank which offers the highest return on its 1-year fixed deposit account of 7.3%. However, senior citizens who are given an advantage by being provided a relatively higher rate of return can earn a rate of interest as high as 8% on 1-year deposit at Bandhan Bank.
Speaking generally, most of the deposits by retail investor class are concentrated in one-year FD scheme. And as the general elections near and with state polls around the corner, banks foresee cash deficit and hence aim at boosting up their asset class and for this purpose also they are upping up their deposit rates. Further on the 3-5 year deposits, banks offer a higher rate of interest in comparison.
|Banks||1-year FD return for general customers||For senior citizens|
|Banks||3 to 5-year FD return for general customers||For senior citizens|
Also, on a more recent basis, the leading private-sector lender ICICI Bank increased its deposit rates by as much as 0.10-0.25% and now on deposit rates for 1-year deposit is 6.90% and for senior citizen category it is 7.40%.