With the coronavirus impacting the economies globally and markets remaining volatile, a lot of investors are sticking to fixed category of investments that includes fixed deposits. The declining rate of bank deposits seem to have not deterred many investors from betting on fixed income returns from bank deposits. Also Read: Banks Can Now Disable Debit Or Credit Cards For Online Transactions. Know What It Means To You This year, the central bank has slashed the repo rate, or the key interest rate, at which it lends money to banks - by a total of 115 basis points since February, on top of 135 basis points last year. It has also forced banks to cut deposit rates. With a lot of uncertainty and volatility in equity and debt markets, investors are opting for bank fixed deposits. If you go by the Care Ratings during the lockdown on 25 April, many investors have shifted to bank deposits instead of investing in debt mutual funds (MFs) as this market is currently quite volatile. Why are fixed deposits gaining traction? In absence of safety nets and market volatility, retails investors, especially those who are senior citizens or conservative investors are banking on bank fixed deposits for regular source of income. Even gold prices have remained volatile because people are prioritising liquidity and safety of their investments. Retail term deposits - or fixed deposits - are instruments where the investment are locked for a pre-defined, "fixed" period of time, for a guaranteed return. Most traditional investors, with a limited or no risk appetite, opt for fixed deposit instead of higher returns from equities or equity-related funds. However, before you opt for a bank deposit make sure that you compare the interest rates and settle down with the right tenure and interest. Compare the rate of interests Top lenders are currently offering annual returns between 2.5-5.5 per cent (FDs) to retail fixed depositors. Most lenders offer a slightly higher rates to senior citizens compared to other customers. State Bank of India Maturity Period:  Interest Rate   (With Effect From September 10)
Maturity Period Public Senior citizen
Seven days to 45 days 2.9%   3.4%
46 days to 179 days   3.9%  4.4%
180 days to 210 days 4.4% 4.9%
211 days to less than one year 4.4% 4.9%
One year to less than two years     4.9% 5.4%
Two years to less than three years 5.1% 5.6%
Three years to less than five years    5.3% 5.8%
Five years and up to 10 years  5.4%  6.2%
(Source: sbi.co.in)
HDFC Bank
Maturity Period Interest Rate (With Effect From August 25)
Public Senior citizen
Seven days to 14 days 2.50% 3.00%
15 days to 29 days 2.50% 3.00%
30 days to 45 days 3.00% 3.50%
46 days to 60 days 3.00% 3.50%
61 days to 90 days 3.00% 3.50%
91 days to six months 3.50% 4.00%
Six months one day to nine months 4.40%  4.90%
Nine months one day to less than one year 4.40% 4.90%
One year 5.10%  5.60%
One year one day to two years 5.10%  5.60%
Two years one day to three years 5.15%  5.65%
Three years one day to five years 5.30%  5.80%
Five years one day to 10 years 5.50%  6.25%
(Source: hdfcbank.com) Kotak Mahindra Bank Maturity Period : Interest Rate (With Effect From September 23)
  • Seven to 14 days : 2.50%
  • 15 to 30 days :  2.50%
  • 31 to 45 days:  3%
  • 46 to 90 days: 3%
  • 91 to 120 days: 3.90%
  • 121 to 179 days:  3.90%
  • 180 days :  4.60%
  • 181 to 269 days: 4.60%
  • 270 days: 4.60%
  • 271 to 363 days: 4.60%
  • 364 days:  4.60%
  • 365 to 389 days: 4.70%
  • 390 days (12 months and 25 days): 5.10%
  • 391 days to less than 23 months: 5.10%
  • 23 months:  5.10%
  • 23 months and one day to less than two years :  5.10%
  • Two years to less than three years: 4.90%
  • Three years and above but less than four years: 4.90%
  • Four years and above but less than five years:  4.75%
  • Five years and above up to 10 years:  4.50%
(Source: kotak.com) ICICI Bank:
Lock-In Interest Rate With Effect From September 7
Public Senior citizen
Seven to 14 days 2.50% 3%
15 to 29 days 2.50% 3%
30 to 45 days 3% 3.50%
46 to 60 days 3% 3.50%
61 to 90 days 3% 3.50%
91 to 120 days 3.50% 4%
121 to 184 days 3.50% 4%
185 to 210 days 4.40% 4.90%
211 to 270 days 4.40% 4.90%
271 to 289 days 4.40% 4.90%
290 days to less than one year 4.40% 4.90%
One year to 389 days 5% 5.50%
390 days to less than 18 months 5% 5.50%
18 months and one day to two years 5.10% 5.60%
Two years and one day to three years 5.15% 5.65%
Three years and one day to five years 5.35% 5.85%
Five years and one day to 10 years 5.50% 6.30%
Five years tax-saver FD (maximum ₹ 1.50 lakh) 5.35% 5.85%
(Source: icicibank.com)