3 days Ago By Avijit Ghosal
Fixed Deposits or FDs are of great significance to a large section of the population who are risk-averse and seek guaranteed returns which ensure a steady cash flow. Investment in debt instruments is advisable for all sections of investors. However, it is of special importance to aged people and retirees who have a finite amount from which to meet all their expenditure.
Irrespective of whether they are PSU or private sector lenders, all banks have been aggressively pursuing selling Fixed Deposits (FD) in the retail segment. Retail FDs refer to the deposit of any amount that is less than Rs 3 crore. This money is a significant part of the pool of funds that any lender accumulates for the purpose on onward lending to businesses and individual applicants.
Let’s see the difference is interest rates between the biggest PSU and private sector bank in the country. FD rates if SBI and HDFC Bank SBI offers a peak return of 7.75% on FDs (branded as Amrit Vrishti) of a fixed tenure of 444 days.
This rate is applicable to senior citizens, while non-senior citizens are entitled to a rate of 7.25% of the same tenure. On the other hand, HDFC Bank offers the highest rate of 7.
90% for an FD of a fixed tenure of 55 months. General customers get 50 basis points less at 7.4%.
SBI rates 7% and above For senior citizens, SBI offers 7% or more interest rates for four tenure slabs, apart from Amrit Vrishti. These are 1 year to less than 2 years (7.3%); 2 years to less than 3 years (7.
5%); 3 years to less than 5 years (7.25%) and 5 years to 10 years (7.5%) For general customers, 7% or higher rates are paid in only 1 slab (apart from Amrit Vrishti).
This is for 2 years to less than 3 years (7%). HDFC Bank rates 7% and above For senior citizens, HDFC Bank offers more than 7% in 11 tenures. These are from 1 year to less than 15 months to 5 years 1 day to 10 years.
For each tenure, those who are aged below 60 years are entitled to 50 basis points less interest rates..
