Hello,

Guest!

Fixed Deposit Interest Rates 

Fixed Deposit is an investment for a fixed period ranging from 7 days to 10 years. You can choose the period at your convenience. Investment in FD is safe. The fixed deposit interest rates are attractive and will give you assured returns.

Updated:

Fixed Deposit Account

FD or Fixed Deposit is a product for investment offered by both Banks as well as NBFCs. You can fulfil your short-term as well as long-term goals by safely parking your surplus funds in Fixed Deposit Accounts. Fixed Deposit is popularly known as a term deposit in banking terms as it has to be invested for a fixed period ranging from 7 days to 10 years. The interest on fixed deposits is much higher than the regular savings bank account.

Reasons for investing funds in Fixed Deposit Account

There are several reasons why investment in Fixed Deposit is largely recommended.

Assured returns on investment

The returns on the investment made in Fixed Deposits are not market-related, and so the returns are absolutely assured. The interest prevailing at the time of investment is the committed returns that the banks/NBFCs will provide, and there will be no change even if the fixed deposit interest rate undergoes changes several times before the maturity period of the Fixed Deposit.

Safe investment

The investment made is 100% safe up to Rs. 5 lakhs. Deposit insurance up to Rs. 5 lakhs for each depositor is provided by DICGC (a fully owned subsidiary of RBI) as compensation if any bank is liquidated.

Returns Calculation made easy.

You can plan your investment prudently with the help of the FD calculator, which gives an instant calculation of returns on your investment. The FD Calculator available on the official websites of banks/NBFCs will calculate the returns on investment instantly on entering the amount to be invested, the period for which the investment is made and the prevailing interest on fixed Deposit.

Tax Exemption

Exemption of tax under Section 80C of the Income Tax Act 1961 is provided for investments made in Tax Saver Fixed Deposits. Investment ranges from Rs. 100 to Rs. 1.50 lakhs can be made under this product. However, the interest of fixed Deposit earned will be taxable.

There will be a lock-in period of 5 years, i.e., you cannot withdraw the amount invested within five years, unlike the investment made in other Fixed Deposits where premature withdrawal is allowed with a penalty.

Avail Loan Against Fixed Deposit

In case of emergencies, you can avail of a loan against Fixed Deposit instead of withdrawing the amount before maturity by paying the penalty. The interest rate will be much lower than the interest rates on Personal Loans. You can avail of a loan of up to 90% of the amount invested. You can pay back the loan in lump sum as and when you have surplus funds. This way, you can keep your investment intact and have access to funds when in need.

The benefit of a Credit Card Against a Fixed Deposit

If you have a low credit score or no credit score, the banks will still approve a credit card if it is against a Fixed Deposit. If you have to improve your credit score or create a credit score, this is the best option. By making credit card payments within the due date, you can improve your credit score.

Types of Fixed Deposit

There are different types of fixed deposits depending on the type of depositor, the benefits sought and the reason for investment.

Regular Fixed Deposit

This category of fixed Deposit can be opened by any resident Indian. The account can be opened in single or joint names. The fixed deposit interest rate under this category for senior citizens will be 0.50% more than the regular interest rate.

Under the regular fixed Deposit, you will have the option of cumulative and non-cumulative deposit options. Under the cumulative deposit option, the interest will be compounded quarterly and will be paid on the maturity date. Whereas under the non-cumulative deposit option, the interest will be paid out either on a monthly or quarterly basis.

Senior Citizen Deposit Scheme

This is a special scheme designed for senior citizens, i.e., for individuals who are 60 years and above. The fixed deposit interest rate under this category will be higher than the regular fixed deposit rate. A monthly interest payout option is available for those depositors, which will serve as an income for monthly sustenance.

Fixed Deposit Scheme for Corporates

This is specially designed for Corporates with different interest rates and tenure. Corporates and business establishments can invest their profits in this scheme and earn interest till the income is put to use in business.

Tax-Saver FD Scheme

For individuals who want a safe investment with tax benefits under 80C of the Income Tax Act 1961, this scheme is ideal. The Deposit will have a lock-in period of 5 years, during which you cannot withdraw the amount.

NRO FD Account

This scheme is meant for NRIs who intend to invest their earnings in India. NRO FD account can be opened jointly with a Resident Indian who is closely related to the depositor.

NRE FD Account

If an NRI wants to invest his/her overseas earnings in India can choose to invest the funds in NRE FD Account. The foreign currency is converted to Indian Rupees while investing in NRE FD Account.

Foreign Currency Non-Resident Account (FCNR FD)

The amount can be invested in the FCNR FD account without converting into Indian Rupees.

RFC or Resident Foreign Currency Account

Non-Resident Indians/PIOs who have come back to India can invest the foreign currency in this account without converting it to Indian Rupees.

Interest rates for Top banks

The following are the bank FD interest rate provided by Top Banks

Name of the BankGeneral Public in %
Canara Bank2.90 to 5.55
Citi Bank1.85 to 3.50
Punjab National Bank2.90 to 5.25
Kotak Mahindra Bank2.50 to 5.50
ICICI Bank2.50 to 5.60
IDBI Bank2.70 to 5.50
Yes Bank3.25 to 6.25
HDFC Bank2.50 to 5.60
Axis Bank2.50 to 5.75
Bank of Baroda2.80 to 5.25

Tax-saving FD

Individuals who do not want to risk their investment choose to take advantage of exemption of tax deduction under Section 80C of the Income Tax Act 1961 by investing in Tax Saver FD schemes provided by Banks/NBFCs. A minimum investment of Rs. 100 to a maximum investment of Rs. 1.50 lakhs is permitted under this scheme. There will be a lock-in period of 5 years, that is, withdrawal before the maturity period, i.e., five years is not permitted as in the case of regular FD accounts. Also, no loan will be made available against Tax-Saver Fixed Deposits.

Some of the banks like Axis Bank provide the option of quarterly compounding and reinvestment of interest on Fixed Deposit or monthly/quarterly interest payout to the savings account of the depositor.

The interest on fixed Deposit earned will be taxable.

Small Finance Banks FD Rates

Small Finance Banks were designed by RBI under the guidance of the Indian Government basically to provide basic banking services to the unserved and underserved segments, including small businesses, small and marginal farmers, unorganized sectors, micro and small industries. These banks are permitted to undertake basic banking activities like lending and collecting deposits like any other commercial bank. They are permitted to open savings bank accounts as well as fixed deposit accounts.

The bank FD interest rate provided by some of the top Small Finance Banks are as given below:

Name of the bankGeneral Public in %Senior Citizens in %
Ujjivan Small Finance Bank2.90 to 6.753.65 to 7.50
Utkarsh Small Finance Bank3.00 to 6.903.50 to 6.40
Equitas Small Finance Bank3.50 to 6.504.00 to 7.00
Suryoday Small Finance Bank3.25 to 7.003.75 to 7.50
Capital Small Finance Bank3.35 to 6.30%3.85 to 6.80
Janalakshmi Small Finance Bank2.50 to 6.753.00 to 7.25
A U Small Finance Bank3.75 to 6.754.25 to 7.25
ESAF Small Finance Bank4.00 to 6.504.50 to 7.00

Fixed Deposit Interest Rates for Senior Citizens

Name of the BankInterest Rate
Canara Bank2.90 to 6.05
Citi Bank2.35 to 4.00
Punjab National Bank3.40 to 5,75
Kotak Mahindra Bank3.00 to 6.00
ICICI Bank3.00 to 6.10
IDBI Bank3.20 to 6.00
Yes Bank3.75 to 6.75
HDFC Bank3.00 to 6.10
Axis Bank2.50 to 6.50
Bank of Baroda3.30 to 5.75

Flexi Fixed Deposit

Flexi Fixed Deposit, unlike the regular fixed deposit scheme, provides a dual advantage of higher interest rates as applicable to fixed deposits with a combination of liquidity. To avail of the dual benefit, the Flexi Fixed Deposit should be linked to either a current or savings account.

Normally a threshold limit in the savings/current account is stipulated by the depositor, and any amount beyond the threshold limit will be transferred to the Flexi fixed deposit account. Whenever there is a deficit in the savings/current account, an amount to that extent will be prematurely withdrawn from the Flexi fixed deposit account and credited to the savings/current account.

Fixed Deposit Calculator

Fixed Deposit Calculator is an investment calculator that is available on the official website of all the banks/NBFCs. If you have to calculate the returns on the investment, you can make use of the Fixed Deposit Calculator. All you need to do is enter the amount to be invested, the period of investment and the existing fixed deposit interest rate has to be entered. The return on the investment will be calculated immediately.

With the help of the Fixed Deposit Calculator, you can make investments prudently and also plan your long term as well as short term goals with great ease.

Fixed Deposit Interest Rates FAQs

Which bank has the highest rate of interest on FD?

image

The highest fixed deposit interest rates of some of the top Indian Banks are given below

Name of the BankGeneral Public in %
Yes Bank3.25 to 6.25
Canara Bank2.90 to 5.55
SBI2.90 to 5.50
ICICI Bank2.50 to 5.60
Punjab National Bank2.90 to 5.25
Kotak Mahindra Bank2.50 to 5.50

What are current SBI FD interest rates?

image

The following is the current SBI FD interest rates

Period of DepositFixed Deposit Interest Rate
7 days to 45 days2.90%
46 days to 179 days3.90%
180 days to 210 days4.40%
211 days to < 1 year4.40%
1 year to < 2 years an 5.10%
2 years to < 3 years5.20%
3 years to < 5 years5.45%
5 years to < 10 years5.50%

Senior Citizens will be 0.50% interest above the regular rate, i.e., the bank FD interest rate will be 3.40% to 5.95% for investment between 7 days to 5 years. SBI Wecare deposit has been introduced specially for Senior Citizens who will carry an additional 0.30% interest, i.e., 0.80% interest above the regular rate instead of 0.50%, and so will earn 6.30% interest. The scheme is valid up to 30th September 2022.

Which SBI FD is best?

image

Funds can be invested in SBI FD for a period of 7 days to 10 years to earn interest between 2.90% to 5.50%. Senior citizens will earn interest between 3.40% to 6.30% 

What is the current FD interest rate?

image

The Bank FD interest rate differs from bank to bank. The prevailing best-fixed deposit rates in India is between 2.50% to 6.25% for individuals below 60 years of age, and for individuals 60 years and above, the prevailing FD.interest rate is 3.00% to 6.75%

What is the minimum & maximum period for an FD?

image

The minimum period for an FD is seven days, and the maximum period for an FD is ten years.