State Bank of India (SBI), the country’s largest lender, hiked interest on its fixed deposit by 90 basis points in October. Several banks such as Bank of Baroda, Punjab National Bank, and Canara Bank have introduced special fixed deposit schemes with attractive interest rates. Investors can earn up to 7-7.25 per cent from fixed deposits. For senior citizens, the interest from the fixed deposit scheme can go up to 7.5-7.75 per cent.
As the interest rates of fixed deposits are revised very frequently, it is better to compare the latest rates offered by the lenders before choosing one.
Here are the latest fixed deposit interest rates offered by the public sector banks in India
| Bank | 6 months 1 day | 1 year to | 2 to | 3 to | 5 years and above |
| Bank of Baroda | 4.65 | 5.5-5.75 | 5.55-6 | 5.65 | 5.65 |
| Bank of India | 4.6 | 5.75 – 6.3 | 5.75-7.25 | 6.25# | 5.75# |
| Bank of Maharashtra | 5 | 5.4-5.7 | 5.5 | 5.5 | 5.5 |
| Canara Bank | 5.5 | 6.25-7 | 6.25 | 6.5 | 6.5 |
| Central Bank of India | 4.65-4.75 | 5.55-5.75 | 5.6-6.25 | 5.5 | 5.6 |
| Indian Bank | 4.5-4.75 | 6.1-6.3 | 6.5 | 6.4 | 6.4 |
| Indian Overseas Bank | 4.65 | 5.7-5.85 | 5.7-6 | 5.85 | 5.85 |
| Punjab National Bank | 5.5 | 6.3-7 | 6.25 | 6.1 | 6.1 |
| Punjab & Sind Bank | 4.8-5.25 | 5.8-6.10 | 6.25-7 | 6.1 | 6.1 |
| Union Bank of India | 4.40-5.25 | 6.3-7 | 6.7 | 6.7 | 6.7 |
| UCO Bank | 4.4 | 5.3 | 5.3 | 5.6 | 5.3 |
| State Bank of India | 5.5 | 6.1 | 6.25 | 6.1 | 6.1 |
#Minimum Deposit = Rs 1 lakh
(Data taken from the respective bank’s website as on November 3, 2022)
FD interest rates to increase further?
As banks have not passed on entire rate hikes to fixed deposit investors yet, the interest rate on FDs is likely to increase further in the coming months, say experts. “With inflation still on the higher side and central banks globally continuing with rate hikes, the FD interest rates will continue to see an upswing in the coming months. The transmission of rate hikes to FDs is slower and may not be 100 per cent, but the combination of reduced liquidity and sustained rise in key policy rates are expected to keep the FD rates inching higher. We anticipate that the rates may go up to 8-9 per cent over the next few months if this situation continues,” said Pankaj Bansal, Chief Business Officer, Bankbazaar.com.
