No matter how attractive the equity and mutual fund markets become, fixed deposits in banks will remain attractive to a huge number of people who look for predictable assured returns. Bank fixed deposits (FD) are never going out of fashion. Despite some households pulling out their savings from banks and putting them into equities and mutual funds, there is a vast majority of Indians who feel comfortable in the smug assured returns that bank FDs provide.
Public Sector (PSU) banks hold a special place among the banks since a large number of Indians tend to believe a PSU bank more than a private sector bank. Let’s see what interest rate on retail FDs half a dozen major PSU banks are offering now. State Bank of India (SBI), Bank of Baroda (BoB) The highest interest that SBI pays is 7.
75% to senior citizens in Amrit Vrishti FD (444 days) and 7.25% for general citizens. For 1 year FD, it pays 6.
80% and 7.80% respectively. For 3-year FDs 6.
75% and 7.25%, while for 5-year FDs the rates are 6.50% and 7.
50% respectively. The interest rates that Bank of Baroda (BoB) are offering range from a high of 7.80% for senior citizens in Monsoon Dhamaka scheme and 7.
30% for general customers. It has a fixed tenure of 399 days. The rates for 1-year FD is 6.
85% and 7.35% for general and senior citizens), 7.15% and 7.
65% for 3-year tenure and 6.50% and 7.15% for 5-year FDs.
Bank of India, Indian Overseas Bank (IOB) Bank of India revised rates from September 27. The new rates stand at 6.80% for ge.