Top 5 Banks Offering Higher Interest Rates On Fixed Deposits

Fixed deposits (FD) are stable investment instruments provided by banks that promise regular and assured interest rates. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, State Bank of India and Axis Bank, are the country's top five banks by market value that currently deliver annual returns of 2.50-5.50 per cent to general public and 2.50-6.30 per cent to senior citizens on fixed deposits of an amount up to Rs. 2 Crore. A fixed deposit enables a depositor to earn predefined rate of interest against his or her deposits for a fixed tenure or what widely known as lock-in period. One earns the amount that was invested along with the compound interest at the end of the tenure from his or her fixed deposits. Here are the latest interest rates that currently offered by the largest lenders of the country:

Banks	ROI per annum
	For general public	For senior citizens
State Bank of India	2.90% to 5.40%	3.40% to 6.20%
ICICI Bank	2.50% to 5.50%	3.00% to 6.30%
HDFC Bank	2.50% to 5.50%	3.00% to 6.25%
Kotak Mahindra Bank	2.50% to 5.50%	3.00% to 5.50%
Axis Bank	2.50% to 5.50%	2.50% to 6.05%

Conclusion

Acceptably, financial advisors suggest, FDs are among the safest options to earn moderate returns and maintain steady financial growth. With the exception of market-linked securities such as stocks, where the yields vary significantly over time, fixed deposits are called secured investments as they provide assured returns and are not linked to stock market. Banks modify their interest rates on fixed deposits on the basis of fluctuations in the benchmark rates set by the Reserve Bank of India. At the end of the FD's tenure, FD interest rates are determined on the principal amount. Generally, FD's maturity period varies from seven days to 10 years, providing discretion to the depositor according to one's needs. To handle monthly expenses, one can also choose for periodic interest pay-outs. At the time of opening an account, the returns on an FD are set or pre-defined. However, if interest rates decline after the opening of a fixed deposit, one receives interest at the prevailing rate as well.