Personal Finance

SBI Reduces FD Rates; Compare Bank FD Interest rates for November

The State Bank of India after making the loan rates cheaper has now reduced FD rates by 25 base points. Fixed Deposit Interest rate of SBI that stood at 6.50% has now been reduced to 6.25%.

An Act of Monkey Balancing after Reducing Lending Rates

SBI, few days back reduced lending rates by 5 basis points making it cheaper for borrowers to take loans. Now it has reduced fixed deposit rates by 25 basis points making it to 6.25%. Overall, this is an act of monkey balancing by giving relief to loan borrowers and giving a blow to FD owners. The new FD rates for 2 years (below Rs 1 crore) will be 6.25% instead of 6.5%. For the same amount, FD of 2-10 years will fetch 6% interest against 6.25%. Similarly, for senior citizens for the period of below 2 years, the interest fetched will be 6.75% and for 2-10 years, the rate will be 6.5%.

For SBI employees and pensioners, the rate of interest applicable will be 1% more than the normal rate. For example, an amount less than one crore deposited for 1 years will fetch 7.25% interest than 6.25%. This decree will be applicable on new depositors and fresh renewals from November 01, 2017.

FD Rates for Other Public and Private Banks

HDFC Bank: FD interest rate for amount less than a crore for normal citizens is 6.80% for a year while it is 7.30% for senior citizens. For 5-10 years, the rate is 6% for common citizens and 6.50% for senior citizens. For 1-5 crore, rate is 4.90% for commoners and 5.40% for seniors for a year. For 2-10 years, rate is 4.85% for commoners and 5.35% for seniors.

ICICI Bank: For amount less than a crore (above 290 days), rate applicable is 6.50% for commoners and 7% for seniors on deposit less than 1 crore. For 1 years, rate applicable is 6.75% for general depositors while 7.25% for senior citizens. Similarly, for 2-10 years, rate applicable for general citizens is 6.50% and for senior citizens, it is 7%.

Others:

Bank Amount Interest (Gen) Interest Seniors Remarks
Axis Bank < 1 crore 6.75% 7.25% For 1 year
Union Bank <1 crore 7% N/A For 1 year
Punjab National <1 crore 6.60% 7.10% For 1 year
IDBI Bank <1 crore 6.75% 7.25% For 1 year
Kotak Mahindra <1 crore 6.75% 7.25% For 1 year

Banks like HDFC and ICICI have also revised their NRO/NRE FD interest rates. HDFC is offering 6.75% interest rate for a year for Rs 1 crore. One thing that you must remember is that FDs are basically saving schemes for senior citizens rather than investment scheme. Profit at the end of maturity tends to be lower after tax reduction and inflation than expected. So be clear on your savings and investment decisions.

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