Fixed deposit interest rates have fallen over the last year. In consonance with the Reserve Bank of India slashing the repo rate multiple times, banks around the country—both government as well as private ones—have been gradually reducing interest rates.
Government banks offer loans at the lowest interest rates, and this is possible because they offer deposits at low interest rates as well. Deposits with government banks are considered highly safe. Therefore, government bank FDs can provide you moderate returns with high capital safety.
The interest rates on some FD tenors have slipped below the 5% mark, but some banks are still offering close to 6.5% on select tenors.
Let’s take a look at the interest rates on offer on the fixed deposits with some of India’s leading government banks.
|Bank||<1 Year||>=1 to <=2||2 to <=3||3 to <=5||W.E.F|
|Bank of Mah||5.75||6||5.75||5.5||12-Sep-19|
|Punjab & Sind||6.4||6.45||6.45||6.45||02-Dec-19|
Data taken from respective banks’ websites as on 04 Feb 2020. For each year range, maximum offered interest rate is considered; interest Rate for normal fixed deposit amount below Rs. 1 Cr.
The table is compiled by BankBazaar.com, India’s leading online marketplace for loans, credit cards and more.