Fixed Deposits, or FDs, bear something of an old-worldly charm about them. Though many young investors consider them somewhat of a fuddy-duddy instrument, investment strategists advise that a substantial part of any serious investor’s portfolio should park a significant amount in debt instruments.
While selecting FDs, the biggest decided is the rate of interest it offers. Let’s have a look at the interest rates offered by HDFC Bank and ICICI Bank, the two biggest private sector banks in India. Both of them have a huge and growing number of customers and the interest rates they offer impact a large number of them.
Highest interest rates of HDFC, ICICI Bank
The highest interest rates offered by HDFC Bank of its FDs are 7.35% (general customers) and 7.85% (senior citizens) on tenure of 35 months. On the other hand, ICICI Bank offers 7.25% (general customers) and 7.8% (senior citizens) for deposits carrying tenure of 15 months to 18 months.
Interest rate on 1-year FD
HDFC Bank pays 6.6% to those below 60 years and 7.1% to those above that age on 1-year FDs. On the other hand, ICICI Bank offers 6.7% and 7.2% interest on FDs with the same maturity period.
Interest rate on 2-year FD
General customers of HDFC Bank get 7% interest on 2-year FDs, while senior citizens are entitled to 7.5% interest. ICICI Bank offers slightly higher rates on this tenure – 7.25% to general customers and 7.75% to senior citizens.
Interest rate on 3-year FD
The rates paid by HDFC Bank on 3-year FDs are the same as 2-year deposits – 7% and 7.5% respectively for general and senior citizen depositors. ICICI Bank, too, pays identical rates as its competitor to both categories of customers.
Interest rate on 5-year FD
The interest rates paid by HDFC Bank and ICICI Bank for 5-year FDs are identical. Both offer 7% and 7.5% to general customers and senior citizens. Incidentally, 5-year FDs also offer income tax benefits according to Section 80C of the Income Tax Act 1961.
