Fixed deposits are very secure forms of investments, especially for individuals in search of a fixed rate of return. Safety comes first when it comes to investing in an FD. However, the rate of interest offered is another critical consideration when selecting a bank.
The current environment of banking institutions allows depositors to earn as much as possible by comparing various interest rates offered by different institutions.
This blog is about 5 central banks that provide the highest interest rates on FDs. It also helps general people and senior citizens choose the best option.
1. Kotak Mahindra Bank
Kotak Mahindra Bank stands out by offering the highest interest rates on one-year FDs:
- General Citizens: 7.1%
- Senior Citizens: 7.6%
Effective from June 14, these rates make Kotak Mahindra Bank a lucrative choice, especially for senior citizens seeking higher returns.
2. Punjab National Bank (PNB)
Punjab National Bank is a strong contender with competitive interest rates on one-year FDs:
- General Citizens: 6.85%
- Senior Citizens: 7.35%
These rates, effective October 1, make PNB an attractive option for those seeking secure and rewarding investments.
3. Canara Bank
Matching PNB, Canara Bank also offers impressive rates on one-year FDs:
- General Citizens: 6.85%
- Senior Citizens: 7.35%
These rates, implemented from June 11, provide a good alternative for depositors prioritizing high returns from state-owned banks.
4. Federal Bank
Federal Bank balances competitiveness and reliability with its FD rates:
- General Citizens: 6.8%
- Senior Citizens: 7.3%
Effective from October 16, Federal Bank’s rates cater to investors seeking stability and reasonable returns.
5. State Bank of India (SBI)
As India’s largest lender, SBI offers solid rates for one-year FDs:
- General Citizens: 6.8%
- Senior Citizens: 7.3%
These rates, effective since June 15, make SBI a go-to choice for depositors seeking trusted banking services.
How do you select the right bank?
When selecting a bank for your fixed deposit, consider the following:
- Interest Rate Differential: Higher rates mean higher returns.
- Bank’s Reputation: Choose established and reliable participants with creditworthy financial statements.
- Convenience: It is better to consider banks in which the person has an account for convenience in processes.
- Senior Citizen Benefits: Get to know the banks that provide special rates for senior citizens.
Conclusion
So, the first step towards obtaining the maximum returns on your fixed deposit is selecting the right bank. Depositors are in a position to earn more since Kotak Mahindra Bank tops the list with the highest rates, followed by PNB, Canara Bank, Federal, and SBI.
Choose wisely and compare rates to safeguard your prospects.