New Delhi: Ever since the Reserve Bank of India raised repo rates at an off-cycle Monetary Policy Committee (MPC) meeting last month, banks across India have been raising interest rates on loans and deposits. Bank FDs are popular among those who do not want to invest in risky products and prefer safe and secure returns on their money. FDs offer a consistent and guaranteed rate of return. This is also a better option when the stock market is performing poorly and is losing money. Fixed deposits, even if their returns are lower than riskier assets, do not harm investors.
Almost every bank in India including public sector undertakings offers the option of creating fixed deposit accounts to the consumers. Here are the fixed deposit interest rates of some public sector entities that offer the best returns. Read more:
Punjab National Bank
Punjab National Bank or PNB has announced a hike in fixed deposit interest rates from July 4. PNB FD rates for deposits above one year and up to two years have been increased by 10 basis points to 5.30 per cent. From 5.20 percent earlier. PNB FD interest rates for deposits expiring in two to three years have been increased by 20 basis points. PNB FD interest rates for older people have been increased by 50 basis points. Read more:
Union Bank of India
Union Bank of India offers fixed deposit interest rate of 5.45 per cent for tenures ranging from one year to two years. Union Bank of India FD interest rates are 5.50 per cent for two years and up to three years and 5.75 per cent for three years and up to five years.
UCO Bank
UCO Bank offers an interest rate of 5.30% for tenures from more than one year to less than two years, and the same rate for tenures of more than two years to three years. The interest rate on UCO Bank FDs for more than 5 years to 5 years is 5.60 percent. UCO Bank FD rate for tenures above 5 years is 5.30%. Seniors depositing less than Rs 2 crore get an additional 50 basis points return at these rates.
Punjab And Sind Bank
The fixed deposit interest rate of Punjab and Sind Bank is 5.35 per cent for tenures of one year to two years and 5.40 per cent for tenures of more than two years to less than two years. The Punjab & Sind Bank FD rate for tenures ranging from 3 years to less than 5 years is 5.60 per cent, while the rate for tenures from 5 years to 10 years remains the same. These rates are applicable on deposits below Rs 2 crore.