SBI account holder? Your bank just hiked FD interest rates, but do not deposit money there, check rates of these banks

Finally, the largest lender State Bank of India (SBI) has given a good news to its customers by hiking fixed deposit rates. Fixed deposits are the safest traditional form of investment in India. You must have been motivated, at one point or another, by an elder to invest in FD schemes rather than taking risks with markets. While every other bank including HDFC Bank, ICICI Bank and Axis Bank were hiking their fixed deposit rates, the spotlight was squarely on the largest lender State Bank of India (SBI) and pressure mounted on it to follow suit. However, SBI did not flinch for a long while, and in quite a surprise,  the bank finally hiked its fixed deposit rates. SBI FD interest rates now stand hiked in the range of 5 basis points to 10 basis points on selective tenures.
 
Sure, SBI's fixed deposit rates now look quite attractive for any customer, however, the real question here is that whether you should actually make a deposit with

SBI. Why, even as there is joy of seeing SBI's new higher FD rates, unfortunately, there's a catch too. SBI FD rates have been hiked only for two types of tenure, while other remaining interest rates are same as before.

The tenures which are seen hike in FD interest rate by SBI, still does not look attractive if we compare them with largest private lender HDFC Bank and ICICI Bank. Let's find out why you should choose other banks, than doing FD with SBI. 

SBI

It was only 1 year to less than 2 year tenure that saw FD rates going higher by 10 basis points. Hence, a regular citizen can make deposits at SBI and earn 6.80% interest per annum. Earlier, this tenure had interest rate of 6.70%. 

Another tenure 2 years to less than 3 years, where a customer will also earn interest of 6.80% from SBI on their FDs. The interest on this tenure was 6.75%. 

Once again senior citizens will benefit more from new SBI FD interest rates.For 1 year to less than 2 year tenure and 2 years to less than 3 years tenure, a senior citizen will earn interest rate of 7.30% each on their FDs. Earlier these two tenure had interest rate of 7.20% and 7.25% respectively. 

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. 

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. 

ICICI Bank 

ICICI Bank increased its fixed deposit interest rates by 25 basis points on less than Rs 1 crore with immediate effect. The new rates are applicable across various tenors for domestic term-deposits. It is also applicable for Non Resident Ordinary (NRO) & Non Resident External (NRE) term-deposits. 

The 2-3 years tenor offers customers an opportunity to invest at a higher interest rate of 7.50% p.a. (8.00% p.a. for senior citizens). 

ICICI Bank offers term-deposits with various maturities starting as low as 7 days and up to 10 years. It also offers a 50 basis points higher interest rate to senior citizens across term-deposits of all maturities.  

Considering above one thing is for sure, that HDFC Bank and ICICI Bank give much better FD interest rate than compared with SBI. If you want to open an FD with SBI, than always try and compare with other bankers in order to avail best benefit. It's a shock that, SBI the bank which provides attractive lending rates and savings account interest rate, could not compete with private lenders.