Now Reading: PNB, PSB top FD rates after RBI keeps repo rate at 5.25%
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PNB, PSB top FD rates after RBI keeps repo rate at 5.25%
RBI has held the repo rate steady at 5.25%, reducing the chance of near-term changes in fixed deposit rates as per bazaar.businesstoday.in. Punjab & Sind Bank offers general customers up to 6.85%…
The Story in Brief
RBI has held the repo rate steady at 5.25%, reducing the chance of near-term changes in fixed deposit rates as per bazaar.businesstoday.in. Punjab & Sind Bank offers general customers up to 6.85% on select tenors, with senior citizens getting up to 7.35% on 666-day deposits. Punjab National Bank offers general customers up to 6.60%.
Separately, Bandhan Bank and IDFC First Bank offer higher returns than SBI on certain tenors. Bandhan Bank gives general customers up to 7.45% on 2-year deposits, while IDFC First Bank offers 7.25% on 3-year deposits. SBI's highest general FD rate is 6.45% for 444 days. On a Rs 10 lakh deposit, Bandhan Bank could fetch Rs 10,000 more annually than SBI.
The Indian Opinion
The FD rate comparison game is tempting but misleading. Bandhan Bank's 7.45% applies only to a 2-year tenor, not all deposits. Investors chasing headline rates often ignore premature withdrawal penalties and tax impact. The real test for any FD investor: does the bank's DICGC cover of Rs 5 lakh per depositor matter more than a 1% rate difference? Compare after-tax returns for your actual holding period, not just the highest number.
Sources (2): bazaar.businesstoday.in, bazaar.businesstoday.in (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
