The Reserve Bank of India (RBI) has cut its reporate at 25 basis after a five-year gap, so the bank could follow suit.
Therefore, it will not take long for banks to begin cutting the interest rates they offer with time deposits.
Meanwhile, banks have not yet lowered interest rates on deposits so far. So, if you want to allocate some of your funds to bonds, we recommend considering packing your money there before interest rates are reduced.
Banks usually give higher interest in long-term fixed deposits and lower profits in short-term fixed deposits.
Here we list the interest rates that banks offer on fixed deposits of 3 years of deposits.
3 years fixed deposit interest rate
HDFC Bank: As shown in the table below, the largest private bank offers 7% on 3-year time deposits to the public and 7.5% to the elderly.
ICICI Bank: This private lender offers 7% on 3-year term deposits and 7.5% to seniors.
Kotak Mahindra Bank: This bank offers 7% to the public and 7.6% to the elderly.
Federal Bank: Federal Bank provides 7.1% to the public and 7.6% to the elderly for three-year term deposits.
Baroda Bank: Baroda Bank provides 7.15% to the public and 7.65% to the elderly for three years of term deposits.
Punjab National Bank: This private lender offers 7% to the public and 7.5% to the elderly.
However, it is important to remember that fixed deposit interests are taxable. Therefore, if you fall into high taxes, locking a large lock with a fixed deposit (FD) may not be a good idea.
