Highest FD Interest Rates Offered On Short Term FDs By Top Public Sector Banks

RBI, the central bank of India has hiked its key lending rate, the repo rate. It has impacted the interest rates on loans and savings accounts and Fixed Deposits FDs. Many public and private sector banks have raised their interest rates on FDs. In this article, FD interest rates offered by top public banks have been discussed.

Canara Bank

For Canara Bank account holders, the 1 year FD rate for the public is 5.30% and 5.80% for senior citizens, the 1 year - less than 2 years FD rate for the public is 5.40% and 5.90% for senior citizens, and 2 years & above - less than 3 years FD rate for the public is 5.45% and 5.95% for senior citizens. Canara Bank is a reputed public sector bank with services to over 10.6 crore customers through a network of 9,734 branches.

Bank Of Baroda

For Bank Of Baroda account holders, the 1 year FD rate for the public is 5% and 5.50% for senior citizens, the above 1 year - 400 days FD rate for the public is 5.20% and 5.70% for senior citizens, above 400 days and up to 2 years FD rate for the public is 5.20% and 5.70% for senior citizens, and similarly, above 2 years & up to 3 years FD rate for the public is 5.20% and 5.70% for senior citizens.

Union Bank of India

Union Bank of India is one of the biggest public sector banks in India that is offering high-interest rates on short-term FDs, after the recent monetary policy change by the RBI. Here are the interest rates are given on below Rs. 2 crore investments. From 181 Days to less than 1 Year FD, the interest rate is 4.40%, in 1 year FD rate is 5%, 1 year-2 year FD rate is 5.10%, 2-3 years FD rate is 5.30%. The FD interest rates are subject to change, depending on the RBI lending rate and the bank's internal policy, the rates can be changed over time.

Punjab National Bank (PNB)

Punjab National Bank's FD rates are marginally higher than UBI's rates in short term. For PNB's account holders, the 1 year FD rate for the public is 5.10% and 5.60% for senior citizens, the above 1 year & up to 2 years FD rate for the public is 5.10% and 5.60% for senior citizens, above 2 years & up to 3 years FD rate for the public is 5.10% and 5.60% for senior citizens.

The interest rate for senior citizens and the public at maturity under 2 years & up to 3 years FDs

Bank	Interest rate for public	Interest rate for senior citizens
Canara Bank	5.45%	5.95%
Bank Of Baroda	5.20%	5.70%
Union Bank of India	5.30%	5.30%
Punjab National Bank	5.10%	5.60%

Comparing these banks' FD rates, it can be said that Canara Bank and Bank Of Baroda are offering more profitable FD investment opportunities in terms of returns.

FDs are preferred by investors who are not very open to taking a risk in the markets. FDs will allow you to have a fixed income after a certain period. It is a widely chosen traditional investment opportunity to save money when the stock market is not performing well. Most importantly, senior citizens are more likely to choose FDs because they can avail more interest rates than other investors. However, some private banks and NBFCs are giving better interest in FD in short term.