HDFC, ICICI or Yes Bank, Which Bank Offers the Best Fixed Deposit Rates?

Fixed deposits (FDs) offered by banks are one of the most common forms of investment among Indians as they are considered to be the safest. FDs offer a uniform interest flow that could be considered a lot more reliable than stock market investments or mutual funds where returns can be volatile. FD rates vary from bank to bank and also depend on factors like the amount of deposit, duration and age of the investor. So, just a little bit of research can help you decide on where to park your money for maximum returns.

Below are the FD rates offered by the three major private lenders in the country – HDFC Bank, ICICI Bank and Yes Bank – as on October 30.

HDFC Bank

-- On fixed deposits of amount under Rs 2 crore, HDFC Bank offers interest rate in the range of 3.5-6.85% per annum depending on the lock-in period. For instance, an FD of up to Rs 2 crore with a tenure of 14 days will attract an interest rate of 3.5%, while that opened for a period of 5-10 years will get 6.75% interest. In case of senior citizens, rates vary from 4% to 7.35%.

-- For amounts ranging Rs 2 crore to Rs 5 crore, the bank offers interest rate of 4-6.5% per annum. For senior citizens, the rates range from 4.5% to 7% on this amount.

-- For amount greater than Rs 5 crore, the interest rate ranges from 4% to 6.5% per annum.

ICICI Bank

-- On fixed deposits of amount under Rs 2 crore, ICICI Bank offers interest rate in the range of 4-6.85% per annum depending on the lock-in period. In case of senior citizens, rates vary from 4.5% to 7.35%.

-- For amounts greater than Rs 2 crore, the bank offers interest rate of 4-6.5% per annum, with senior citizens getting no additional benefit. However, FD holders can get higher interest rate in the range of 4.25% to 6.6% if they opt for withdrawal of premature closure facility.

Yes Bank

-- On fixed deposits of amount under Rs 2 crore, Yes Bank offers interest rate in the range of 5-7.5% per annum depending on the lock-in period. In case of senior citizens, rates vary from 5.5% to 8%.

-- For amount greater than Rs 2 crore, the bank doesn’t disclose the FD rates on its website and urge investors to visit their nearest branch to get more information on the same.