Introduction:

In this article, we take a look at the various floating and fixed interest rates currently offered by banks on home loans. The interest on FD across housing finance companies and from different sectors of the market – public, private as well as international and national, are as follows:

Foreign banks:

Beginning with foreign banks, as of April 2021:

  1. Citibank has set its interest rates at 2.75% for a tenure less than or upto 1 year, 3% for 1-2 years, and 3.5% for 2-3 years as well 3-5 years.
  2. Standard Chartered bank’s rates are slightly higher at 4.6% for under or upto a year, 5.4% for a period of 1-2 years and 2-3 years and 5.35% for 3-5 years.
  3. HSBC’s rates are 3.1% for less than 1 year, 3.75% for 1-2 years, and 4% for 2-3 years as well as 3-5 years.

India – Public sector:

Coming to Indian banks, we’ll be looking at a few in the public sector.

  1. Bank of Maharashtra’s rates are set at 4.25% for less than 1 year, 4.9% for tenures spanning upto 5 years, in effect starting January 2021.
  2. State Bank of India’s rates of interest on fixed deposit start at 4.4% for duration less than a year, 5.1% for 1-2 years, 5.3% for 2-3 years and 5.4% for 3-5 years.
  3. Central Bank of India’s rates as of January 2021 start at 4.25% for less than 1 year, 4.9 %for 1-2 years and 5.1% for 2-3 and 3-5 years.
  4. Bank of Baroda’s current rates of interest are 4.4% for less than 1 year, 5% for 1-2 years, 5.1% for 2-3 years and 5.25% for 3-5 years.
  5. Canara Bank’s fixed deposit interest rates are currently set at 45% for a tenure of less than 1 year, 5.4% for 1-2 years and 5.5% for a period of 2-3 and 3-5 years.

India – Private sector:

In the private sector in India,

  1. Axis Bank’s rates of interest on fixed deposit, start at 5.15% for a tenure of less than 1 year, 5.4% for duration of 1-2 and 2-3 years, and 5.75% for 3-5 years.
  2. HDFC Bank rates begin at 4.4% for less than 1 year,  9% for 1-2 years, 5.15% for 2-3 years and 5.3% for 3-5 years.
  3. ICICI Bank’s interest rates are set at 4.4% for less than 1 year, 5% for 1-2 years, 5.15% for 2-3 years, 5.35% p.a. for 3-5 years.
  4. Kotak Bank’s fixed deposit interest rates as of March 2021 are 4.4% on a tenure of less than 1 year, 5% for 1-2 years, 5.1% 2-3 years and 5.3% for 3-5 years.

Conclusion:

While this article covers some of the well-known banks in the market today, there are still several other banks and financial institutions who may have rates that suit you better, hence it is important to do thorough research in advance. It should be noted that fixed interest rates may be revised post a specified tenure as per the bank’s terms and conditions. Additionally, some banks or financial institutions may allow fixed rates only for a defined period of time, after which prevailing floating rates will be made applicable. As an investor, it’s crucial to assess all the features of fixed deposits and compare all your options before investing, and FD interest rates are a key factor to take into consideration. Finserv MARKETS is a one-stop solution for all your investment needs and has a wide range of options on offer from several of the best providers in India, from which you can choose the FD that suits your requirements the best.

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