Fixed Deposit Interest Rates

Banks/Finance Companies Best FD Interest Rates Best Rates for Senior Citizen FDs
SBI (State Bank of India) 2.90% - 5.40% 3.40% - 6.20%
Yes Bank 4.00% - 7.00% 4.50% - 7.75%
RBL Bank 3.50% - 7.15% 4.00% - 7.65%
Equitas Small Finance Bank 3.60% - 7.35% 4.20% - 7.95%
DCB Bank 4.75% - 6.95% 5.25% - 7.45%
Bajaj Finance 6.90% - 7.10% 7.15% - 7.35%

Fixed Deposit (FD) interest rates are between 2.25% and 8.00%. Investing in FDs gives you guaranteed return. These are low-risk investments offered by banks and NBFCs in India. The interest rate on FDs depends on several domestic factors such as liquidity condition in market, macro-economic situation, government policies, etc. You can invest for up to 10 years. You can invest in FD schemes if you are a resident individual, firm, NRI, HUF, or Charitable Trust. All you need to submit is identity proof, address proof, age proof, and signature proof.

In this post we will discuss the highest/lowest FD rates by banks/finance companies, FD interest calculator, factors that affect FD interest rates, senior citizen fixed deposit interest rates, highest FD rates as per tenure, flexi deposits with auto-sweet facility rates, tax saving FD rates, and frequently asked questions.

Lowest and Highest Fixed Deposit Rates

FDs offer guaranteed returns. The Fixed Deposit rates differ from a bank/financial institution to another. Thus, you must compare the rates before investing in an FD of a particular bank or NBFC. That have highest ratings of AAA, rated by CRISIL and CRA. The rates also differ as per the tenure and age group of customers. Senior Citizen FDs come with a higher rate than that for people below 60 years of age.

  • Currently RBL Bank offers highest FD rates between 3.50% to 7.15% for customers below 60 years of age.
  • In same category for small finance banks, Jana Small Finance Bank offers 3.50% to 7.50%.
  • For Senior Citizen FD Interest Rates YES Bank offers between 4.50% and 7.75%.
  • In small finance banks, Jana Small Finance Bank offers rates between 4.00% and 8.00% to senior citizens.
Bank FD Interest Rates Senior Citizen FD Interest Rates
SBI 2.90% - 5.40% 3.40% - 6.20%
Bajaj Finance 6.90% - 7.10% 7.15% - 7.35%
Axis Bank 2.50% - 5.50% 2.50% - 6.05%
IDFC First Bank 2.75% - 6.00% 3.25% - 6.50%
HDFC Bank 2.25% - 4.00% 2.75% - 4.50%
Kotak Bank 2.50% - 5.10% 3.00% - 5.60%
ICICI Bank 2.50% - 5.50% 3.00% - 6.30%
IDBI Bank 2.90% - 5.20% 3.40% - 5.70%
ICICI Home Finance 6.00% - 6.50% 6.25% - 6.75%
OBC 3.00% - 5.25% 3.75% - 6.00%
Bank of Baroda 2.90% - 5.30% 3.40% - 5.80%
Indian Overseas Bank 3.40% - 5.25% 4.15% - 6.00%
Citibank 2.75% - 3.75% 3.25% - 4.25%
PNB 3.00% - 5.25% 3.75% - 6.00%
PNB Housing Finance 6.20% - 6.70% 6.45% - 6.95%
Canara Bank 3.00% - 5.35% 3.00% - 5.85%
UCO Bank 2.75% - 5.00% 3.00% - 5.40%
Indian Bank 2.90% - 5.25% 3.40% - 5.75%
Central Bank of India 2.75% - 5.00% 3.25% - 5.50%
Punjab and Sind Bank 3.25% - 5.30% 3.75% - 5.80%
Allahabad Bank 2.90% - 5.25% 3.40% - 5.75%
Union Bank of India 3.00% - 5.40% 3.50% - 5.90%
RBL Bank 3.50% - 7.15% 4.00% - 7.65%
Andhra Bank 3.00% - 5.40% 3.50% - 5.90%
Bank of Maharashtra 3.00% - 4.90% 3.50% - 5.40%
IndusInd Bank 3.25% - 7.00% 3.75% - 7.50%
Bank of India 3.25% - 5.30% 3.75% - 5.80%
HSBC Bank 2.25% - 4.00% 2.75% - 4.50%
United Bank of India 3.00% - 5.25% 3.75% - 6.00%
Dhan Laxmi Bank 3.50% - 5.60% 4.00% - 6.10%
Syndicate Bank 3.00% - 5.35% 3.00% - 5.85%
LIC Housing Finance 5.50% - 5.60% 5.75% - 5.85%
Corporation Bank 3.00% - 5.40% 3.50% - 5.90%
South Indian Bank 3.50% - 5.50% 4.00% - 6.00%
Federal Bank 2.50% - 5.50% 3.00% - 6.00%
ESAF Small Finance Bank 4.50% - 7.00% 5.00% - 7.50%
AU Small Finance Bank 3.75% - 6.75% 4.25% - 7.25%
DCB Bank 4.75% - 6.95% 5.25% - 7.45%
Lakshmi Vilas Bank 3.60% - 6.50% 3.60% - 7.00%
Bandhan Bank 3.00% - 6.00% 3.75% - 6.75%
Karur Vysya Bank 3.50% - 5.65% 3.50% - 6.15%
Equitas Small Finance Bank 3.60% - 7.35% 4.20% - 7.95%
Yes Bank 4.00% - 7.00% 4.50% - 7.75%
Karnataka Bank 3.50% - 5.70% 3.90% - 6.10%
Jana Small Finance Bank 3.50% - 7.50% 4.00% - 8.00%
Standard Chartered Bank 4.25% - 6.30% 4.25% - 6.80%
Fincare Small Finance Bank 3.50% - 7.00% 4.00% - 7.50%
DBS Bank 2.75% - 5.20% 2.75% - 5.20%
Ujjivan Small Finance Bank 3.05% - 6.50% 3.55% - 7.00%
Jammu And Kashmir Bank 3.00% - 5.30% 3.50% - 5.80%
India Post Office 5.50% - 6.70% 5.50% - 6.70%

Fixed Deposit Interest Rates Calculator

FD rate calculator tells you about the returns to expect at the end of tenure depending on the fixed deposit rate. To calculate returns from your Fixed Deposit, use the following formula:

A = P * (1+ r/n) ^ n*t

I = A – P

A = Maturity value

P = Principal amount

r = rate of interest

t = Number of years

n = Compounded interest frequency

I = Interest earned amount

Factors that Affect Fixed Deposit Rates

FDs give assured returns. These are safe investments with no risk. The Fixed Deposit rate by banks and financial institutions depends on amount deposited, type of depositor, tenure of deposit, amount of funding that the bank/NBFC requires from FD. Here are factors that impact the rates on NBFC/bank FDs:

  • Amount Deposited: Financial institutions offer the best rate on deposits of less than Rs. 1 crore, whereas lower rates apply on bulk deposits above Rs. 1 crore.
  • FD Tenure: Higher rates apply on deposits with longer tenure, and vice-versa. As per the latest information, highest rate for tenure less than 1 year is 7.10%, whereas the highest FD rate is 7.25% for tenure of 10 years deposit.
  • Type of Depositor: Senior Citizen Fixed Deposit Schemes carry higher rates by all banks and NBFCs. As per latest information, the rates for senior citizen FDs range between 2.50% and 8.00% depending on the tenure and deposit amount.
  • Funds Required by Banks/NBFCs: Reputed and large banks have greater access to low cost savings account. These financial institutions may not look to raise much funds from FDs. Thus, they offer lower rates on the same as against that by small finance banks or new banks. The latter are more dependent on term deposits, and may offer better rates on FDs.

Senior Citizens Fixed Deposit Interest Rates

Banks and NBFCs offer better rates for senior citizen FDs. The rates are usually higher by 25 to 75 basis points based on the rate applied for regular FDs by other individuals. To avail the best rates, senior citizens have to submit their age proof (above 60 years). Tenure of the deposit is between 7 days and 10 years. Loan is also available on these FDs. On premature withdrawal, penalties will apply. As per the current information, the highest rate for individuals over 60 years is by:

  • Jana Small Finance Bank at 4.00% to 8.00%
  • Equitas Small Finance Bank at 4.20% to 7.95%
  • YES Bank at 4.50% to 7.75%
  • RBL Bank at 4.00% to 7.65%
  • ESAF Small Finance Bank at 5.00% to 7.50%
  • Fincare Small Finance Bank at 4.00% to 7.50%
  • IndusInd Bank at 3.75% to 7.50%
  • DCB Bank at 5.25% to 7.45%
  • Bajaj Finance at 7.15% to 7.35%
  • AU Small Finance Bank at 4.25% to 7.25%

Highest FD Interest Rates

The best FD rates by bank is for 1 year is by IndusInd Bank and YES bank at 7%. For 5 years and 3 years, Jana Small Finance Bank offers best rate at 7% and 7.50%, respectively. For 2 years, the highest FD rate offered is 7.10% by Equitas Small Finance Bank

Highest FD Rate FD Tenure Banks
7.00% 1 year Yes Bank, IndusInd Bank
7.10% 2 years Equitas Small Finance Bank
7.50% 3 years Jana Small Finance Bank
7.00% 5 years Jana Small Finance Bank

Highest 5 Years FD Rates

For 5 years tenure, Jana Small Finance Bank offers the best rate of 7% followed by 6.75% by Equitas Small Finance Bank, 6.70% by India Post Office, 6.30% by Dena Bank, and 6% by Standard Chartered Bank.

Banks 5 Years Rate for FD
Jana Small Finance Bank 7.00%
Equitas Small Finance Bank 6.75%
India Post Office 6.70%
Dena Bank 6.30%
Standard Chartered Bank 6.00%

Highest 3 Years FD Rates

For 3 years tenure, the best FD rate offered us 7.50% by Jana Small Finance Bank, 7.15% by Equitas Small Finance Bank, 7% by YES Bank, 6.05% by Ujjivan Small Finance Bank, and 6% by Standard Chartered Bank.

Banks 3 Years Rate for FD
Jana Small Finance Bank 7.50%
Equitas Small Finance Bank 7.15%
Yes Bank 7.00%
Ujjivan Small Finance Bank 6.05%
Standard Chartered Bank 6.00%

Highest 2 Year FD Rates

For 2 years tenure, the best rate offered is 7.10% by Equitas Small Finance Bank, 7% by Jana Small Finance Bank, Yes Bank, and IndusInd Bank, and 6.85% by RBL Bank.

Banks 2 Years Rate for FD
Equitas Small Finance Bank 7.10%
Jana Small Finance Bank 7.00%
Yes Bank 7.00%
IndusInd Bank 7.00%
RBL Bank 6.85%

Highest 1 Year FD Rates

For 1-year tenure, the best FD rate offered is 7% by Yes Bank and IndusInd Bank, 6.90% by Jana Small Finance Bank, 6.85% by RBL Bank, and 6.75% by Dena Bank.

Banks 1 Year Rate for FD
IndusInd Bank 7.00%
Yes Bank 7.00%
Jana Small Finance Bank 6.90%
RBL Bank 6.85%
Dena Bank 6.75%

Flexi Deposit Rates

In a Flexi Deposit scheme, as a depositor you can link your FD account to your savings bank account. Then as per your fund requirement, you can transfer in and out the surplus savings to your linked Fixed Deposit account. This facility is called Auto Sweep. You earn a higher interest on surplus amount in your savings bank account. Also, you get the flexibility of taking money out of the account as per need.

Auto Sweep Facility Rates

Like discussed, in a sweep-in facility you can transfer surplus funds to your fixed deposit account from the savings deposit account. The interest rate offered on this deposited amount is higher than that on a regular savings account. The rates differ from a bank to another. However, the FD interest rates for the same are between 4.15% and 7.10%.

  • Banks do not charge any additional fee on auto-sweep deposits unlike that on overdraft facility.
  • If you are in need of funds, you can withdraw the amount from your FD without completely breaking the FD, or paying a penalty.
  • If you avail this facility, you can interlink your savings bank account with multiple deposits.

Interest Rates for Tax Saving Fixed Deposits

If you invest in a Fixed Deposit scheme, then under the Section 80C of Income Tax Act, you can receive tax deduction of up to Rs. 1,50,000 with 5 years lock-in period. Under Section 194A of the Income Tax Act 1961, TDS of 10% is applicable on the FD earned interest if this amount in a financial year is over Rs. 40,000. To get exemption from paying tax on the interest income, you have to submit Form 15G/15H.

Here is a list of tax saving FDs, with tax saving rate, and minimum deposit:

Tax Saving FD Tax Saving Minimum Deposit (INR)
SBI Tax Savings Scheme 5.40% 1,000
Axis Bank Tax Saver FD 5.50% 100
HDFC Bank 5 Year Tax Saving FD 4.00% 100
ICICI Bank Tax Saving Fixed Deposit 5.50% 10,000
Kotak Bank Tax Saving FD 5.10% 100
Bank of Baroda Tax Savings Term Deposit 5.30% N. A
Citibank Tax Saver Deposits 3.75% 1,000
PNB Tax Saver FD Scheme 5.25% 100
Corporation Bank Tax Saver Plus Deposit Scheme 5.40% 100
Central Bank of India Tax Saving Deposit 5.00% 100
RBL Bank Tax Savings Fixed Deposits 7.15% N. A
IDBI Bank Suvidha Tax Saving FD 5.20% N. A
Syndicate Bank SyndTaxShield Deposit 5.35% 100

Frequently Asked Questions about Fixed Deposit Interest Rates

Here are FAQs on FD Interest Rates:

  • 1. What is the best rate on FD?

    The highest rate on a regular FD is by DHFL at 8.50% to 9.25% for regular customers and 9.00% to 9.75% for senior citizens.

  • 2. Is it possible to receive monthly interest?

    It is possible to get monthly interest on Fixed Deposit accounts in case you opt for the monthly interest pay-out option. The interest earned is on the deposited principal amount. The same can be calculated yearly, half yearly, quarterly, and monthly.

  • 3. Why does the FD interest rate fluctuate?

    Changes in macro-economic conditions influence the Fixed Deposit interest rates. This may cause the rates to fluctuate. Some of the factors responsible for FD rate determination are liquidity condition, higher rate of inflation, demand and supply of funds at domestic economy level.

  • 4. What is the minimum deposit amount for a Fixed Deposit account?

    The minimum deposit amount is Rs. 1,000 (in some cases Rs. 100). However, there is no upper limit for the deposit amount.

  • 5. Will you have to pay penalty on premature FD withdrawal?

    An FD offers a fixed return on fixed investment amount for a specified tenure. The bank may charge a penalty on premature withdrawal. The penalty is in form of a lower interest rate on the surrender value. You will receive a lesser return on the invested sum. The penalty for breaking an FD is usually between 0.5% and 1%.

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