Best Fixed Deposits (FD) Interest Rates Offered By Top PSU Banks In India

A fixed deposit (FD) is a popular investment option for investors who are not much open to risks. As a traditional investment tool, it is a good option for senior citizens because most banks are providing higher interest rates for them. Here top four PSU banks' interest rates on FDs have been discussed for investment.

Punjab National Bank (PNB)

For State Bank of India (SBI) account holders, for above 1 year & upto 2 years FD rate for public is 5.30% and 5.80% for senior citizens, above 2 year & upto 3 years FD rate for public is 5.50% and 6.00% for senior citizens, and above 3 year & upto 5 years FD rate for public is 5.50% and 6.00% for senior citizens. These interest are applicable for the domestic deposit for less than Rs. 2 core.

UCO Bank

For UCO Bank account holders, for More than 1 year but upto 2 Years FD rate for public is 5.30% and 5.80% for senior citizens, above 2 year & upto 3 years FD rate for public is 5.30% and 5.80% for senior citizens, Above 3 Years and less than 5 Years FD rate for public is 5.60% and 6.10% for senior citizens, and 5 years and above FD rate for public is 5.30% and 5.80% for senior citizens. These interest are applicable for the domestic deposit for less than Rs. 2 core.

Punjab & Sind Bank

For Punjab & Sind Bank account holders, for 1 Year - 2 Years FD rate is 5.35%, Above 2 Year less than 3 Years FD rate for public is 5.40%, 3 Years - 5 Years FD rate is 5.60%, and less than 5 Year - 10 Years FD rate is 5.60%. These interest are applicable for the domestic deposit for less than Rs. 2 core.

Investing in FDs is a safe option, as up to Rs. 5 lakh of investment will be insured by the RBI.

Union Bank Of India

For Union Bank Of India account holders, for 1 Year to 2 Years but upto 2 Years FD rate is 5.45%, 2 Years to 3 Years FD rate is 5.50%, 3 Years to 3 Years 14 Days FD rate is 5.75%, and 3 Years 15 Days to 5 Years FD rate is 5.75%.

The interest rate on FDs by the PSU Banks: Comparison

Bank	Tenure	Interest rate for public
Punjab National Bank (PNB)	Above 2 year & upto 3 years	5.50%
UCO Bank	Above 2 year & upto 3 years	5.30%
Union Bank of India	2 Years to 3 Years	5.50%
Punjab & Sind Bank	Above 2 Year less than 3 Years	5.40%

Why Invest In FDs: Low Risk Factor

Although FDs are very important and safe investment tools but are not known for high returns, mostly in the long term. FDs, are preferred by senior citizens because they get a higher interest amount on the investment. But the interest in FDs is subject to change. As the RBI changes its repo rate, the banks can also change the interest rates on the FDs. At present, to control the high inflation rate, the repo rate is being hiked. So, the FD interest rate has also hiked marginally, which should not be expected to be consistent progress. Many analysts also think that FDs should be compared to the savings option, not to the investment options, because they do not offer many returns in the long run. The market for mutual funds and stocks is gaining, due to high returns. However, still investors choose FDs, because of their very low-risk quotient. Also, it is recommended to invest in the short-term FDs, and not in the long-term FDs.