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Fixed Deposit War: SBI, HDFC, ICICI, and PNB Offer Up to 7.60% for 1 to 3 Year Tenures
Quick Executive Summary
- •HDFC Bank and ICICI Bank peak rates reach 7.25% - 7.60% on special tenure buckets.
- •Senior citizens receive an additional 0.50% interest bonus across all tenures.
- •RBI quarterly compounding ensures effective annual yields reach up to 7.82%.
Competition among scheduled commercial banks to attract stable retail deposits has pushed Fixed Deposit (FD) interest rates to multi-year highs in India.
State Bank of India (SBI), HDFC Bank, ICICI Bank, and Punjab National Bank (PNB) are currently offering peak interest rates between 7.10% and 7.60% for tenures spanning 400 days to 3 years.
Under Reserve Bank of India guidelines, all cumulative fixed deposits compound interest quarterly (four times a year). Consequently, a stated 7.50% interest rate delivers an effective annual yield of 7.71%.
Depositors are reminded that bank deposits are insured up to ₹5,00,000 per depositor per bank (including principal and interest) under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
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