With banks increasing fixed deposit interest rates in tandem with the Reserve Bank of India’s repo rate hike, FD investors are in a good place after decade long low interest rates.
According to experts, it is preferable to buy short-term fixed-rate deposits in a rising rate environment so that they might profit from the increase during the investment period.
Therefore, choosing an FD with a duration of six months to a year could be a wiser move. You can book longer term FDs once these FDs mature and you receive a better rate at the time of renewal.

Here is a quick comparison of banks such as SBI, HDFC bank, ICICI bank, PNB and Canara bank short term FD rates (6 months to 1 year). Check which bank is offering the highest rate.

HDFC Bank
HDFC Bank offers fixed deposit interest rates between 5.25% to 5.50% for tenure ranging between 6 months to less than one year for regular citizens. Interest rates for senior citizens in the range of 5.75% to 6% for same tenure.

SBI
State bank of India offers fixed deposit interest rates between 5.25% to 5.50% for tenure between 180 days to less than one year for regular citizens. Interest rate for senior citizens varies between 5.75% and 6%.

ICICI Bank
ICICI Bank offers fixed deposit interest rates between 5.25% to 5.50% for tenure ranging between 6 months to less than one year for regular citizens. Interest rate for senior citizens varies between 5.75% to 6% for the same tenure.

PNB
PNB offers fixed deposit interest rates between 5.50% to 6% for tenure ranging between 6 months to one year for regular citizens. Interest rate for senior citizen varies between 6% to 6.80% for same tenure. For super senior citizen, interest rate varies between 6.30% to 7.10%.

Canara Bank
Canara Bank offers fixed deposit interest rates between 5.50% to 6.25% for tenure ranging between 6 months to one year for regular citizens. Interest rate for senior citizens varies between 6% to 6.75% for the same tenure.

(Interest rates as on December 7, 2022; Source: Banks’ websites)