Banks such as State Bank of India, HDFC Bank, ICICI Bank, and IDFC First Bank offer short-term and long-term deposits. Time Deposits are also given by Post Office which sees a quarterly emendation of rates similar to that of the banks. In the ongoing coronavirus pandemic, the interest rates on these deposits had been altered on April 1. Fixed deposits (FDs) are contemplated to be the most preferred investment choice.
Post office term deposit schemes are effective starting from April 2020. Post office term deposit schemes are similar to bank Fixed Deposits. Post offices offer term deposits varying from one year to five years. Investors are able to earn a pledged return during the tenure of the post office term deposit similar to Fixed Deposits. The interest rates on Post Office deposits were amended in April 2020. It offers an interest rate of 5.5 percent for deposits varying from one to three years while it offers an interest rate of 6.7 percent for a five-year time deposit account.
IDFC First Bank’s present-day FD interest rates have been set into motion from September 15, 2020. They offer short-term Fixed Deposits varying from seven days to one year and long-term Fixed Deposits varying from one to ten years. IDFC First Bank varies from 2.75 percent p.a. to 5.75 percent p.a. for deposits varying between seven and ten days.
The period may differ from 7 days to 10 years for State Bank of India Fixed Deposits, depending on whether the term of the deposit is for the short term or the long term. State Bank of India Fixed Deposit interest rates has been set into motion from January 8. For General customers, State Bank of India Fixed Deposit interest rates ranges from 2.9 percent to 5.4 percent.