HDFC vs SBI vs ICICI vs PNB vs Canara Bank FD Rates: Who Offers Higher Returns On Rs 2.5 Lakh Fixed Deposits?

Fixed Deposit Scheme: A fixed deposit scheme is considered a safe investment option for investors who are looking to get guaranteed returns on their investments. Most FD schemes offer up to 8% returns on investment, senior citizens can get up to 9% returns on investment.

Banks like HDFC Bank, State Bank of India, ICICI Bank, Punjab National Bank, Canara Bank, etc, offer fixed deposit schemes for different tenures. For those who are planning to divert a chunk of their savings into fixed deposit schemes, here are top FD rates for investments up to Rs 2.5 lakh by HDFC Bank, SBI, ICICI Bank, PNB, Canara Bank, etc.

Best FD schemes in 1, 3, and 5 year tenure for Rs 2.5 lakh deposits

Banks like HDFC, SBI, ICICI, Canara Bank, etc offer special interest rate on tenure like 444 days, 300 days, etc. For the ease of comparison of fixed deposit schemes provided by these banks, we have taken generic tenures like one year, three year, and five year. Canara Bank is offering comparatively higher interest rates on the mentioned tenures. To get the detailed information about FD rates on all tenures, people can visit these banks' official website or nearest bank branch.

Bank	1 yr (%)	1 yr (%)(senior cit)	3 yr (%)	3 yr (%)(senior citizens)	5 yr (%)	5 yr (%) (senior citizen)
HDFC	6.6	7.1	7	7.5	7	7.5
SBI	6.8	7.3	6.75	7.25	6.5	7.5
ICICI	6.7	7.2	7	7.5	6.9	7.4
PNB	6.8	7.3	6.8	7.3	6.5	7
Canara Bank	6.85	7.35	7.4	7.9	6.7	7.2

What is Fixed deposit scheme?

A fixed deposit (FD) scheme is an investment instrument that offers guaranteed returns to investors. Unlike equities and stock markets, FDs offer lower interest rates on investment, at the same time they are as volatile or risky as equities.

Under this investment scheme, individuals invest their amount in a lump sump for a specific period with the bank. FD scheme tenure can be less as seven weeks to as high as 5 years. Not just public sector banks, private banks, small sector and cooperative banks also offer fixed deposit facility

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Types of fixed deposit

Based on their benefits and other features, there are different types of fixed deposits like standard or regular FDs, tax saving FDs, senior citizen FDs, flexi FDs, NRI FDs, etc. Based on the option to avail the option of reinvestment of interest bank customers can either opt for cumulative FDs or non-cumulative FDs.

What are the benefits of FD schemes?

Fixed deposit schemes offer multiple types of benefits including guaranteed returns, secured payment, ease of investment, etc. Investment in certain FD schemes also offers multiple tax benefits under Section 80 C of the Income Tax Act. These tax benefits can be availed by only those people who have opted for the old income tax regime. Several banks offer the facility of availing loans over fixed deposits, hence people can take loans using their FD as collateral. The easy and safe nature of investment in FD schemes makes it accessible to a larger number of people and also offers an option for diversification among investors.

Banks regularly revise FD rates for different tenures, in most cases, FD interest rate revision is based on multiple factors including RBI repo rate, etc. To know about latest bank fd rates, you can simply visit you nearest bank branch or check fd rates on their official website.