For conservative investors seeking secure and attractive returns on fixed deposits (FDs), several public sector banks in India have recently revised their interest rates, making it an ideal time to invest. The Bank of Maharashtra is currently offering the highest interest rate among public sector banks, with 7.15% on 366-day deposits. Other notable banks with competitive interest rates include the Indian Overseas Bank, Punjab and Sind Bank, Bank of India, and Central Bank of India.
The Indian Overseas Bank offers 7.10% on 444-day FDs, while the Punjab and Sind Bank provides 7.05% interest on 444-day FDs. The Bank of India has introduced a special 999-day Green FD at 7%, and the Central Bank of India offers 7% on deposits ranging from two to three years. These rates are significantly higher than what was previously offered, making them an attractive option for risk-averse investors.
The recent revision in interest rates by public sector banks can be attributed to the Reserve Bank of India’s (RBI) decision to cut the repo rate. This has created a favorable environment for investors to lock in higher interest rates for the medium to long term. Fixed deposits remain a trusted investment tool due to their capital safety and guaranteed returns, making them an excellent option for those seeking a low-risk investment.
With interest rates ranging from 6.25% to 7.15%, investors can choose from a variety of tenure options, including one year, three years, and five years. The Central Bank of India also offers special FDs with tenures of 1111 days, 2222 days, and 3333 days, all of which offer a 7% interest rate. Overall, the revised interest rates offered by public sector banks provide an excellent opportunity for investors to earn attractive returns on their investments while minimizing risk.