|Bank||FD Rate of Interest||Senior Citizen FD Rates|
|SBI Fixed Deposit||2.90% - 5.40%||3.40% - 6.20%|
|HDFC Bank Fixed Deposit||2.75% - 5.50%||3.25% - 6.00%|
|ICICI Bank Fixed Deposit||3.25% - 5.75%||3.75% - 6.25%|
|Axis Bank||3.25% - 5.80%||3.25% - 6.45%|
|ICICI Home Finance||6.85% - 7.10%||7.10% - 7.35%|
|Kotak Bank||3.00% - 5.40%||3.50% - 5.90%|
|IDFC First Bank||4.00% - 7.25%||4.50% - 7.75%|
|Bank of Baroda||2.90% - 5.30%||3.40% - 5.80%|
|Citibank||2.75% - 4.00%||3.25% - 4.50%|
|IDBI Bank||3.00% - 5.80%||3.50% - 6.40%|
|Indian Bank||3.05% - 5.50%||3.55% - 6.00%|
|Indian Overseas Bank||4.50% - 5.70%||5.25% - 6.45%|
|OBC||3.25% - 5.50%||3.75% - 6.00%|
|PNB||3.25% - 5.50%||3.75% - 6.00%|
|HDFC||6.88% - 6.88%||7.13% - 7.13%|
|PNB Housing Finance||7.20% - 7.75%||7.45% - 8.00%|
|Allahabad Bank||3.05% - 5.50%||3.55% - 6.00%|
|Andhra Bank||4.00% - 5.90%||4.50% - 6.40%|
|Bank of India||3.50% - 5.65%||4.00% - 6.15%|
|Bank of Maharashtra||3.00% - 5.25%||3.50% - 5.75%|
|Canara Bank||3.50% - 5.50%||3.50% - 6.00%|
|Central Bank of India||3.40% - 5.35%||3.90% - 5.85%|
|Punjab and Sind Bank||3.50% - 5.55%||4.00% - 6.05%|
|UCO Bank||3.65% - 5.50%||3.90% - 6.00%|
|Union Bank of India||4.00% - 5.90%||4.50% - 6.40%|
|United Bank of India||3.25% - 5.50%||3.75% - 6.00%|
|ESAF Small Finance Bank||5.00% - 7.50%||5.50% - 8.00%|
|IndusInd Bank||4.00% - 7.00%||4.50% - 7.50%|
|RBL Bank||5.00% - 7.50%||5.50% - 8.00%|
|DCB Bank||5.00% - 7.35%||5.50% - 7.85%|
|HSBC Bank||2.25% - 4.00%||2.75% - 5.25%|
|South Indian Bank||3.75% - 6.15%||4.25% - 6.65%|
|Bandhan Bank||3.25% - 6.25%||4.00% - 9.85%|
|Lakshmi Vilas Bank||4.00% - 6.75%||4.00% - 7.25%|
|Equitas Small Finance Bank||3.60% - 7.35%||4.20% - 7.95%|
|Jana Small Finance Bank||5.00% - 8.60%||5.60% - 9.20%|
|Karnataka Bank||3.50% - 5.75%||4.00% - 6.25%|
|DBS Bank||3.45% - 5.50%||3.45% - 5.50%|
|DHFL||8.50% - 9.25%||9.00% - 9.75%|
|Jammu And Kashmir Bank||3.50% - 5.70%||4.00% - 6.20%|
|Ujjivan Small Finance Bank||3.50% - 6.95%||4.00% - 7.45%|
|Fincare Small Finance Bank||4.00% - 7.75%||4.50% - 8.25%|
|Karur Vysya Bank||3.50% - 6.00%||3.50% - 6.50%|
|Syndicate Bank||3.50% - 5.50%||3.50% - 6.00%|
|Yes Bank||5.00% - 7.25%||5.50% - 7.75%|
|Dhan Laxmi Bank||3.50% - 6.25%||4.00% - 6.75%|
|Bajaj Finance||7.40% - 7.60%||7.65% - 7.85%|
|Standard Chartered Bank||4.25% - 6.30%||4.25% - 6.30%|
|Federal Bank||3.50% - 6.10%||4.00% - 6.60%|
|AU Small Finance Bank||4.00% - 7.25%||4.50% - 7.75%|
|LIC Housing Finance||7.50% - 7.60%||7.75% - 7.85%|
|Corporation Bank||4.00% - 5.90%||4.50% - 6.40%|
Among banks, RBL Bank offers the highest FD rate of 7.50% for deposits with a tenure of 3 years. FD rates of banks are determined by changes in RBI monetary policy such as repo rate, base rate etc, internal liquidity position of banks, economic conditions and the level of credit demand. FD interest rates of different banks in India vary by deposit amount, deposit tenure and type of depositor.
If you compare fixed deposit rates of small finance banks as per the latest FD rates, Jana Small Finance Bank offers the best FD rate of 9.20% for deposits with a tenure of 1 Year 1 Day to 2 Years . Fixed Deposits of Small Finance Banks are a good choice for depositors looking to earn high interest rate on safe time deposits.
|FD Rates||Highest FD Rate||Banks with highest FD rate|
|1 year FD||8.50%||Jana Small Finance Bank|
|5 year FD||8.00%||Jana Small Finance Bank|
The top bank for 1 year FD is Jana Small Finance Bank as it offers highest interest rate of 8.50% on regular term deposits. For 5 year FD, Jana Small Finance Bank should be your top choice as it’s rate of interest is maximum at 8.00%.
Bank FDs are completely safe as retail deposits of up to Rs 5 lakh are covered by a guarantee by government through DICGC. Full form of DICGC is Deposit Insurance and Credit Guarantee Corporation which provides a guarantee known as DICGC guarantee on deposits of up to 5 lakh. The insurance limit on FDs have been increased in the latest Budget 2020 and is expected to reduce the risk of small depositors.
It is important to understand the deposit insurance is available for banks and Small Finance Banks. However, deposit insurance is not applicable to NBFCs and HFCs. In the case of NBFCs and HFCs, it is advisable to invest in AAA rated or highly rated FDs only to reduce the risk on your savings.
Bank FD interest rates varies by the amount deposited, tenure of deposit, and type of depositor.
Very often depositors face a situation where they need urgent funds and may want to withdraw their fixed deposits before maturity. In common language this is knows as breaking a FD. Banks usually levy a penalty at the time of premature withdrawal of FD either by paying lower interest rate on the deposit amount or deducting a penalty amount from the FD.
However, some banks including Yes Bank and Bank of Maharashtra waive off interest penalty on FD if the liquidation is due to some emergency. Some banks also offer the option of partial withdrawal from the fixed deposit account with some penalty.
Fixed Deposits are also known as ‘term deposits’ or ‘time deposits’. Term deposits are considered safest investment option compared to other savings instruments. duration of a fixed deposit may vary from 7 days to 10 years. The rate of interest on these deposits is based on the tenure and bank’s interest rates policies. Key features are:
Highest FD rate for Senior Citizens is currently at 9.85% offered by Bandhan Bank for 36 Months to 3 Years to 4 Years 364 Days . Interest offered on senior citizen FDs is slightly higher than what is offered to other individuals. Senior citizens are required to submit their age proof to avail the benefits and be eligible for senior citizen FDs.
Using the FD calculator, you can find out the total interest you will earn at the end of tenure.
The formula for calculating fixed deposit interest rates is shown below
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
Interest on FD is taxed at applicable tax rate to the depositor. Interest on FD’s is taxable on accrual basis which means that even if the depositor will get FD maturity amount and interest at the time of FD maturity, he will pay tax on accrued interest on FD every year.
In case the interest earned by you on fixed deposits with all branches of a bank in a year exceeds Rs. 40,000, your interest income was subject to 10% tax deduction at source (TDS). However from 14th May 2020 onwards, it has been revised to 7.5%. Remember to quote your IT PAN when opening the term deposit, otherwise the bank deduct TDS at twice the applicable rate. Also, you can claim credit for TDS exemption on FD only if your PAN is recorded with the bank.
Tax savings Fixed Deposit is a special type of deposit which allows the depositor to claim deduction of up to Rs 1,50,000 on interest earned of FD under Section 80C of Income Tax Act. Tax saving FDs are also called tax free FDs and allows depositors to claim a tax exemption of upto Rs 1.5 lakh. Remember that premature withdrawal of tax saving FD is not allowed as they have a minimum lock-in-period of 5 years
|Tax Saving FD||Minimum deposit||Tax Saving|
|SBI Tax Savings Scheme||Rs. 1,000||5.40%|
|HDFC Bank 5 Year Tax Saving Fixed Deposit||Rs. 100||5.50%|
|Axis Bank Tax Saver Fixed Deposit||Rs. 100||5.80%|
|Kotak Bank Tax Saving Fixed Deposit||Rs. 100||5.40%|
|ICCI Bank Tax Saving Fixed Deposit||Rs. 10,000||5.75%|
|Citibank Tax Saver Deposits||Rs. 1,000||4.00%|
|Bank of Baroda Tax Savings Term Deposit||N.A||5.30%|
|Corporation Bank Tax Saver Plus Deposit Scheme||Rs. 100||5.90%|
|PNB Tax Saver Fixed Deposit Scheme||Rs. 100||5.50%|
|RBL Bank Tax Savings Fixed Deposits||N.A||7.50%|
|Central Bank of India Tax Saving Deposit||Rs. 100||5.35%|
|Syndicate Bank SyndTaxShield Deposit||Rs. 100||5.50%|
|IDBI Bank Suvidha Tax Saving Fixed Deposit||N.A||5.80%|
Flexi deposit allows the depositor to link its fixed deposit account to a savings bank account and allows his surplus savings to move in and out of the linked FD account as per his funds requirements. This facility, known as Auto Sweep facility allows a depositor to earn higher interest rates on surplus amount in his savings account along with retaining the flexibility of withdrawing money from the account when required.
RBI has announced a repo rate cut of 40 bps in response to coronavirus lockdown. In response to this rate cut, banks may reduce FD rates in the near future which could adversely impact the interests of fixed depositors.
You can deposit a minimum amount of Rs. 1,000 in FD account but there is no upper cap on deposit amount.
The highest interest rate on fixed deposits in the market is offered by Jana Small Finance Bank at 8.60% for regular FD and 9.20% for senior citizens.
Yes, you can get monthly interest on FD if you choose monthly interest payout option. In Fixed Deposit, you earn interest on the principal amount, which can be calculated monthly, quarterly, half yearly or annually.
Yes, you can withdraw FD amount online before FD maturity but bank may levy a penalty by paying lower interest rate or charging a penalty for premature withdrawal.
The tenure within which the sum invested in FD will double depends directly on these factors; the rate of interest, amount invested, and the tenure of the deposit.
The following are eligible to invest in FD schemes- Resident Individuals, HUFs, NRIs, Firms, and Charitable Trusts, while others can apply for the scheme by submitting an offline application.
The following documents are required for opening a Bank FD Account
Senior citizens get higher rates between 0.25 and 0.75 percent on their FD.
Choosing FD is a good decision if you are looking to earn a competitive rate of interest without taking any risk. It is one of the safest investment options available in the market.
Recurring Deposit (RD) lets you deposit a certain amount each month in the account to earn interest on the invested sum for a specified tenure on a predetermined rate of interest. Whereas, Fixed Deposit (FD) is created by investing a lumpsum amount for a specified tenure on a predetermined rate of interest.