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To this extent, Union Bank offers the highest 7.40% on 333-day deposits, and Bank of Baroda announced interest at 7.25% for 399 days.
Several banks have taken key steps to increase fixed-deposit rates with RBI warnings. To this extent, Union Bank offers the highest 7.40% on 333-day deposits, and Bank of Baroda announced interest at 7.25% for 399 days.
Bank of India offered at 7.30% for 666 days, and Canara Bank offered at 7.25% for 444 days. In fact, the new FD rates will be effective on August 12, 2024.
In Indian banks, a fixed deposit (FD) is a financial instrument where an individual can deposit a lump sum of money for a fixed period at a predetermined interest rate.
During this period, the deposited amount earns interest, which is higher than that of a regular savings account. Once the tenure ends, the individual receives the principal amount along with the accrued interest.
There are five types of fixed deposits in Indian banks.
★ Standard Fixed Deposits: fixed tenure with predetermined interest rates.
★ Tax-saving Fixed Deposits: lock-in period of 5 years with tax benefits.
★ Senior Citizen Fixed Deposits: Higher interest rates for individuals above 60.
★ Cumulative Fixed Deposits: Interest compounded and paid at maturity.
★ Non-Cumulative Fixed Deposits: Interest paid periodically (monthly).
