Fixed deposit (FD) interest rates: Before opening a fixed deposit, it is advisable to first compare the interest rates offered by different banks. Typically, banks offer relatively higher interest on long tenor deposits than short tenors.Additionally, almost all banks give somewhat higher interest to depositors who are senior citizens (above the age of 60) than to regular investors. Let us find out the interest rates offered by different banks (state and private) on their term deposits across tenors.Private ...

Core Insights - The article emphasizes the importance of comparing interest rates from different banks before opening a term deposit, particularly highlighting that long-term deposits generally offer higher interest rates than short-term ones [1][2]. Interest Rates Offered by Banks - HDFC Bank offers 6.45% interest on a three-year fixed deposit, 6.25% on a one-year deposit, and 6.45% on a two-year deposit, effective from June 25, 2025. Senior citizens receive an additional 50 basis points [3]. - ICICI Bank provides 6.6% interest on three-year fixed deposits for general depositors and 7.1% for senior depositors, with one-year and two-year deposits earning 6.25% and 6.4%, respectively [4]. - Kotak Mahindra Bank offers 6.4% interest on three-year fixed deposits for general citizens and 6.90% for senior citizens, with one-year and two-year deposits at 6.25% and 6.4%, respectively, effective from August 20 [5]. - Federal Bank offers 6.4% on one-year, 6.5% on two-year, and 6.5% on three-year fixed deposits, effective from August 18, 2025 [7]. - State Bank of India (SBI) provides 6.3% interest on three-year fixed deposits for regular citizens and 6.8% for senior citizens, with one-year and two-year deposits earning 6.25% and 6.45%, respectively, effective from July 15, 2025 [7]. - Bank of Baroda offers 6.50% interest on three-year fixed deposits for regular citizens and 7% for senior citizens, with one-year and two-year deposits at 6.25% and 6.5%, effective from September 12 [8]. - Union Bank of India provides 6.6% interest on three-year term deposits for regular citizens and 7.1% for senior citizens, with one-year and two-year deposits at 6.4% and 6.5%, respectively, effective from August 20, 2025 [9]. Summary of Interest Rates for Senior Citizens - HDFC Bank: 6.95% for three-year deposits [6] - ICICI Bank: 7.1% for three-year deposits [6] - Kotak Mahindra Bank: 6.90% for three-year deposits [6] - Federal Bank: 6.9% for three-year deposits [6] - State Bank of India (SBI): 6.8% for three-year deposits [6] - Bank of Baroda: 7.0% for three-year deposits [6] - Union Bank of India: 7.1% for three-year deposits [6]