SBI vs HDFC Bank: The best fixed deposit interest rates revealed! Check full list here

A war over fixed deposits has emerged between leading state-owned and private banks. With the start of Diwali festival, many banks have announced a hike in their fixed deposit rates making them very attractive form of investment for citizens. Latest to jump on the bandwagon would be HDFC Bank, which has has hiked interest rates ranging from 0.05% to 0.50% on term deposits below Rs 1 crore and above Rs 1 crore but less than Rs 5 crore for various tenures. Fixed deposits offer safety of principal and assured cash flows and these factors make it an attractive option. This is suitable for investors who are light risk taker when it comes to their hard-earned money.   

However, to avail better benefits, one should always compare the fixed deposit interest rates offered by various banks. Let’s compare one of the largest private lenders, HDFC Bank FD rates to PSB State Bank of India. SBI being state-owned and the largest bank in India, has on multiple occasions hiked its FD rates in order to lure more customers. Know here that It’s HDFC Bank and SBI that offer you the best FD interest rates. Let’s check them out. 

HDFC Bank 
In its domestic/NRO/NRE term deposits, HDFC Bank for FDs below Rs 1 crore, now offers 7.30% interest rate to general public for 1 years tenure. In the same tenure, HDFC Bank offers 7.80% interest to senior citizens on their FDs. 

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Over 2 years tenure but less than 3 years, HDFC Bank gives 7.40% interest rate to general public and 7.90% interest rate to senior citizens for their term deposits below Rs 1 crore.

However, the interest on FD now is at 7.25% and 7.75% for customers and senior citizens whose tenure is between 3 years to 5 years on below Rs 1 crore deposits.  

For FDs over Rs 1 cr but less than Rs 5 crore, HDFC Bank gives 7.50% interest rate for general public and 8% interest rate to senior citizens on their deposits made for 1 year tenure. This interest rate is similar on tenures till 3 years for both senior citizens and general public. 

The interest rate stands at 7.35% and 7.85% for customers and senior citizens for tenure between 3 years to 5 years for deposits made over Rs 1 crore till Rs 5 crore. 

SBI FD interest rates! 
SBI has not hiked any FD rates in the festive season, its last hike was seen in the month of July 2018. 

For tenure between 211 days to less than a year on deposits made below Rs 1 crore, SBI gives interest rate of 6.40% to general public, whereas to senior citizens it provides interest rate of 6.90%. 

Under the revised rate structure, the deposits for 1 year to 2 years accrues 6.7% interest rate, as for senior citizens, the new interest rate is at 7.2%. 

For investments from 2 years to 3 years, the interest rate has also been revised to 6.80% for general public and 7.30% for senior citizen.

For deposits made from 5 years to 10 years tenure, SBI gives 6.75% interest rate to public while 7.35% to senior citizens on their deposits. 

Considering the above, it can surely be said that HDFC Bank’s fixed deposits interest rate is quite attractive then the SBI ones. 

Banks are making their FD look attractive for investors in order to increase their deposits for enhancing their credit growth which will help them recover in return stressed asset issue in making higher provisions. One needs to remember loan is the main source of income for banks.