Interest rates: Nowadays many investors are thinking of keeping their money safe in FD (Fixed Deposit). If you also want to invest your money in FD, then first you should find out which banks are giving more interest on fixed deposits. Before making a fixed deposit (FD), investors should always compare the interest rates of different banks.

Let us now tell you which banks are offering the highest interest rates in different periods. Some banks are giving the highest interest on 2-3 year fixed deposits, while some banks are offering the highest interest rates on 15-18 month deposits.

These 7 banks are offering great interest rates on FD:

Federal Bank (FD Interest Rates Federal Bank)

Federal Bank is giving an interest rate of 7.5 percent to general citizens and 8 percent to senior citizens on fixed deposits for 444 days.

HDFC Bank (FD Interest Rates HDFC Bank)

HDFC Bank is offering 7.4 percent interest rate to general citizens and 7.9 percent interest rate to senior citizens on FD of 4 years and 7 months.

ICICI Bank (FD Interest Rates ICICI Bank)

ICICI Bank is offering a 7.25 percent interest rate to general citizens and a 7.85 percent interest rate to senior citizens on a 15-18 months fixed deposit.

Kotak Mahindra Bank (FD Interest Rates Kotak Mahindra Bank)

Kotak Mahindra Bank is offering a 7.4 percent interest rate to general citizens and 7.9 percent interest rate to senior citizens on FD of 390-391 days.

State Bank of India (FD Interest Rates SBI)

The interest rate of government banks is slightly lower. State Bank of India (SBI) is offering 7 percent interest rate to general citizens and 7.5 percent interest rate to senior citizens on FD of 2-3 years.

Bank of Baroda (FD Interest Rates Bank of Baroda)

This bank is offering an interest rate of 7.15 percent to general citizens and 7.65 percent to senior citizens on FDs of 2-3 years.

Union Bank (FD Interest Rates Union Bank)

Union Bank is offering an interest rate of 7.3 percent to general citizens and 7.8 percent to senior citizens on FDs of 456 days.

Minor difference in interest rates of most banks

However, some people may feel that there is only a slight difference in the interest rates of most banks, so what difference does it make. But this thinking is wrong, in the long term, even a slight difference of 50 basis points can significantly increase your interest income. Let us explain it to you through an example. If your fixed deposit amount is Rs 10 lakh, then an additional 50 basis points will give you an additional income of Rs 5,000 in a year.

If you have made an FD for three years, then the additional income will increase to Rs 15,000. Similarly, if you have made an FD of Rs 20 lakh, then due to the additional 50 basis points in 3 years, your additional income will increase to Rs 30,000. Hopefully now you have understood how much a slight difference in the interest rate can increase your interest income. Therefore, before making a fixed deposit, it is wise to find out about the banks offering the highest interest rate.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.