Prior to investing in a fixed deposit in a bank, depositors are recommended to compare the interest rates of different banks. This can help them maximise their earnings.
Typically, depositors opt for a bank with which they share a long-term banking relationship. However, it should not be seen as a rule of thumb. Sometimes, a little higher interest rate offered by a bank can lead to higher savings in the long run.
Therefore, choosing the right bank can lead to a higher income.
It is vital to realise that longer-tenure fixed deposits (FDs) help investors earn higher incomes. In other words, when the tenure is short, the interest rate is lower, and on the contrary, when the tenure is long, the interest rate is higher.
State Bank of India (SBI) offers depositors an interest rate of 6.8 per cent per annum. However, senior citizens are entitled to 7.30 per cent per annum.
HDFC Bank offers 6.60 per cent to depositors on their one-year deposits, while senior citizens are entitled to 7.10 per cent on the FDs of the same tenure.
At the same time, ICICI Bank offers an interest of 6.7 per cent on their one-year deposits to general citizens and 7.20 per cent to senior citizens.
Kotak Mahindra Bank offers 7.10 per cent interest to depositors on their one-year FDs and 7.60 per cent to senior citizens. Punjab National Bank (PNB) offers 6.8 per cent to general citizens and 7.3 per cent to senior citizens.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.