Business: In this Diwali season, if you are investing in fixed deposits, it is crucial to compare the FD interest rates offered by different banks. However, before investing in the FDs, check the interest rates other banks offer in both the private and public sectors. If you already have invested in FDs, opening an account in a bank that offers a higher rate of interest is no harm. This can lead to a considerably higher income over a long period of time. For example, an extra 1 per cent interest on an FD amounting to Rs lakh for 3 years can lead to an extra income of Rs 15,000. 

It should be noted that some of the banks typically offer higher rate of interest on their long-term fixed deposits but offer a lower rate when the FD tenure is short. 

Check list of banks that offer higher 

HDFC Bank offers 7 per cent interest rate to general citizens and 7.5 percent to senior citizens on its 3-year fixed deposit. The revised interest rates came into force on July 24 this year.

ICICI Bank offers 7 per cent and 7.5 percent interest rate to general citizens and senior citizens respectively on its 3-year fixed deposits. 

Kotak Mahindra Bank offers 7 per cent to general citizens and 7.6 percent to senior citizens on its 3-year fixed deposits. These new rates came into effect on June 14, 2024.

Federal Bank offers 7 per cent and 7.5 per cent interest rate to general and senior citizens respectively as per the latest announcement on October 16.

State Bank of India (SBI) said it offers 6.75 per cent to general citizens and 7.25 per cent to senior citizenson its 3-year fixed deposits. These rates came into effect on June 15 this year.

Bank of Baroda said it offers 7.15 per cent interest rate to general citizens and 7.65 per cent to senior citizenson its 3-year fixed deposits. The new rates were rolled out on October 14.

Punjab National Bank offers 7 per cent and 7.5 percent interest rate to general citizens and senior citizens, respectively on its three year fixed deposit. 

Union Bank of India said it offers 6.70 per cent and 7.20 per cent interest rate to general citizens and senior citizens, respectively.