In the past month, several banks have hiked up interest rates for fixed deposits of less than Rs 1 crore - or retail deposits - making them an attractive savings option to meet short to medium-term financial goals.
The list includes ICICI Bank, HDFC Bank, Punjab National Bank , Kotak Mahindra Bank, Canara Bank, Axis Bank, and most recently, Allahabad Bank. The volatility in the financial markets has also renewed customer interest in this savings option.
With a recent RBI note outlining a pick-up in bank credit growth, lenders will be needing more funds and, hence, deposit rates could get even more attractive in the near future. According to the regulator, bank credit growth accelerated in September 2018 (year-on-year) with branches across all population groups, from rural to metropolitan, recording double-digit growth. In fact, private sector banks recorded credit growth above 20% for the fourth successive quarter.
For now, here's a handy guide for rate comparison among the leading banks:
*Note that senior citizens earn 50 basis points higher interest on all tenures.
The above is only an indicative table. All the lenders offer several more tenures for fixed deposits. Visit individual bank websites for more details.