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Business Desk – SBI Vs HDFC Bank FD: If you want to invest your money safely, then fixed deposit (FD) is still one of the most reliable options. Especially senior citizens like to invest in FD, because the investment in it is safe and pre-determined interest is available. Apart from this, banks also offer higher interest rates to senior citizens as compared to normal customers.

If you are thinking of getting an FD and want to choose between the country’s largest government bank SBI or the largest private bank HDFC Bank, then it is important to first understand the interest rates of both the banks.

What is the interest rate available in SBI?

The country’s largest government bank SBI is offering different interest rates on FDs of different tenures. For general customers, SBI is offering 6.25% interest on 1 year FD, 6.45% on 2 years, 6.30% on 3 years, 6.05% on 5 years and 6.05% on 10 years FD.

At the same time, for senior citizens, interest is being given on FD of 1 year, 6.75%, 6.95% on 2 years, 6.80% on 3 years, 7.05% on 5 years and 7.05% on FD of 10 years.

How much return on HDFC Bank FD?

HDFC Bank, the country’s largest private bank, is also running FD schemes of different tenures. General customers are getting 6.25% interest on 1 year FD, 6.45% on 2 years, 6.45% on 3 years, 6.40% on 5 years and 6.15% on 10 years FD. At the same time, for senior citizens, 6.75% interest is being given on 1 year FD, 6.95% on 2 years, 6.95% on 3 years, 6.90% on 5 years and 6.65% on 10 years FD.

In which bank will you get more benefits?

If we talk about 1 year and 2 year FD, then the interest rates of both SBI and HDFC Bank are almost the same for general and senior citizens. However, in 3 year FD, HDFC Bank is giving 6.45% interest to general customers and 6.95% interest to senior citizens, which is more than SBI.

HDFC Bank’s interest rate for general customers on 5 year FD is 6.40%, while SBI is giving 6.05%. However, for senior citizens, SBI is ahead of HDFC Bank by offering 7.05% interest at 6.90% for a tenure of 5 years. HDFC Bank is offering 6.15% interest for general customers on 10 year FD, which is more than SBI’s 6.05%. But for senior citizens, SBI is giving better returns with 7.05% interest than HDFC Bank’s 6.65%.

What to keep in mind before investing?

If you are a normal investor and want to make an FD of 3, 5 or 10 years, then HDFC Bank is giving better returns in many periods. At the same time, SBI is offering higher interest for senior citizens in long term FDs i.e. 5 and 10 years.

Before investing in FD, not only the interest rate but also your investment period, money requirement and other facilities of the bank should be kept in mind. By choosing the right tenure and right bank, you can get better and safe returns on your investment.