PNB, Bank of India, Yes Bank revise FD rates; check here

Despite the falling interest rates, fixed deposits (FD) have been a preferred instrument to park their money for a large number of Indians. It is believed to be one of the safest avenues offering a fixed and pre-determined return on a given tenure. Very recently at least three major public and private sector banks, including Punjab National Bank (PNB), the second largest nationalised bank in the country, revised their fixed deposit interest rates.

RBI policy rate

Last week the Reserve Bank of India (RBI) kept the repo rate and reverse repo rate unchanged for the seventh successive time. RBI held the repo rate steady at 4% and the reverse repo rate at 3.35%.

If you are planning to invest in fixed deposits, you should know the recent interest rate changes.

PNB latest FD rates

Punjab National Bank (PNB) has recently revised interest rates on fixed deposits. After the latest revision, this public sector bank offers interest rates between 2.90% and 5.25% on deposits below Rs 2 crore for tenures between 7 days and 10 years for the general public.

The highest rate of 5.25% is a reduction of 0.05 percentage point from the earlier highest rate of 5.30%.

The new rates on term deposits were applicable from August 1, 2021.

Bank of India latest rates

Bank of India, another PSU bank, also announced revised fixed deposit interest rates. Now they are offering 2.85% to 5.05% interest for the general public for 7 days to 10 years tenure. The new rates on term deposits were applicable from August 1, 2021.

YES Bank FD rates

Yes Bank, one of the major private sector banks, after the latest revision, is offering minimum 3.25% and maximum 6.50% interest on fixed deposit to senior citizens for 7 days to 10 years tenure.

The rates for Yes Bank are 3.25% on deposits between seven and 17 days, 3.5% for those between 15 and 45 days, and 4% between 46 and 90 days. A rate of 5.25% is available for FDs between 9 months and less than 1 year. Those maturing between three to 10 years would fetch 6.5% interest rate.

The new rates on term deposits were applicable from August 5, 2021.

Senior citizens

PNB and BoI offer an additional interest rate of 50 basis points or 0.50 percentage point more than general customers on FDs for senior citizens. However Yes Bank is offering 0.50% to 0.75% additional interest for senior citizens.

Other banks

According to latest data, all other major public players offer interest rates up to 5.6%. Union Bank of India (UBI) at the top of the list. It offers maximum 5.60% interest to the general public. Canara Bank in the second position with 5.50% interest.

State Bank of India (SBI) is now offering up to 5.40% interest to the general public on FD’s. Senior citizens will get additional 0.50% interest.