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    Compare Fixed Deposit (FD) Rates - October 2016

    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹1Cr
    7 Days to 20 Years
    5.25% - 8.75% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
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    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.75% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4.25% to 7.85% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    15 Days to 20 Years
    4.5% to 8% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    6% to 8% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% to 8% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.75% - 7.6% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    7.25% - 7.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    7% - 7.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year onwards
    7% - 7.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    3.75% - 7.9% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    7.25% - 7.4% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
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    How to find the best rates for a Fixed Deposit

    The table above provides the best fixed deposit rates for the selected duration and deposit amount. Use the slider to change the FD amount. The FD duration can be updated by using the duration dropdown. If you are a senior citizen, please choose the appropriate status so that you see the correct Senior Citizen FD rate.

    Fixed Deposit Interest Rates for Top 10 Banks – September 2016

    The fixed deposit schemes offered by most banks can be availed for tenures ranging from as short as seven days to as long as 10 years. Few of the banks, such as the State Bank of Patiala, IDBI Bank, the Ratnakar Bank, etc. offer FDs that stretch to 20 years as well. The FD rates applicable to schemes with short tenures is very similar to the interest rates applicable to Savings Account. The interest on FDs is compounded on a quarterly basis.

    Individuals who invest in fixed deposit can avail overdraft / loan facilities from the bank against the amount in their fixed deposit accounts. The interest rate charged for loans / overdrafts is usually 0.5% or 1% in addition to the interest rate applicable to the fixed deposit itself. In case the income earned from fixed deposit rates in a given financial year is over Rs.10,000, the investor can claim tax deductions at the rate of 10%.

    FD Rates By Top Banks
    Fixed Deposits with Bank Tenure (Min-Max) Interest Rates for Regular Deposit
    State Bank of India 7 days-10 years 5.25% p.a.-7.00% p.a.
    Indian Post Office 1 year-5 years 7.10% p.a.-7.90% p.a.
    HDFC Bank 7 days-10 years 3.50% p.a.-7.25% p.a.
    ICICI Bank 7 days-10 years 4.00% p.a.-7.50% p.a.
    Axis Bank 7 days-10 years 3.50% p.a.-7.50% p.a.
    Punjab National Bank 7 days-10 years 4.25% p.a.-7.50% p.a.
    Bank of India 7 days-10 years 4.00% p.a.-7.25% p.a.
    Canara Bank 7 days-10 years 4.00% p.a.-7.50% p.a.
    Indian Bank 7 days-More than 3 years 5.00% p.a.-7.25% p.a.
    Bank of Baroda 7 days-10 years 4.50% p.a.-7.30% p.a.

    FD Rates for Senior Citizens for Top 10 Banks – September 2016

    Fixed deposits are a relatively safer and more secure form of investment than other conventional modes of investment available out in the market. Acting more like a savings instrument, the lock-in periods associated with fixed deposits allows for a more disciplined approach to long term savings or short term wealth growth. Fixed deposit tenures can be available for periods as low as 7 days to tenures as high as 10 years. Fixed deposits are an especially great idea for senior citizens considering that their sources of income are limited and people are mostly risk averse in that age group. Additionally, banks tend to offer better interest rates for senior citizens. The best fixed deposit interest rates offered by banks in India for senior citizens’ are mentioned in the table below –

    Senior Citizen Fixed Deposit Interest Rates by Top Banks
    Fixed Deposits with Bank Tenure (Min-Max) Senior Citizen FD Rates
    State Bank of India 7 days-10 years 5.50% p.a. to 7.75% p.a.
    Indian Post Office 1 year-5 years 7.10% p.a. to 7.90% p.a.
    HDFC Bank 7 days-10 years 4.00% p.a. to 8.00% p.a.
    ICICI Bank 7 days-10 years 4.50% p.a. to 8.00% p.a.
    Axis Bank 7 days-10 years 3.50% p.a. to 8.00% p.a.
    Punjab National Bank 7 days-10 years 4.75% p.a. to 8.00% p.a.
    Bank of India 7 days-10 years 4.50% p.a. to 7.80% p.a.
    Canara Bank 7 days-10 years 5.75% p.a. to 8.05% p.a.
    Indian Bank 7 days-More than 3 years 5.00% p.a. to 7.75% p.a.
    Bank of Baroda 7 days-10 years 5.00% p.a. to 7.80% p.a.

    FD rate using online calculator

    A Fixed Deposit is a great way to save money for a period of time, if you’re looking at getting your invested money safely along with good earning through it then Fixed Deposit is the way to go. With the online and e-commerce platforms having such an influence on our day to day activities, checking our banking work and making decisions with relation to that is now very easy. To learn about how your Fixed Deposit earns interest and how much will be your earning at the end of the tenure chosen, online calculators will help you.

    A Fixed Deposit online calculator will help you calculate the interest that your money will earn when kept in a Fixed Deposit. This will take into account your investment that's the Principal amount on maturity after the interest is compounded on a monthly, quarterly, half-yearly or yearly basis. As an example let’s say that you have a sum of Rs.15, 000 that is deposited in your bank for a period 2 years the interest the bank is paying you is an annual interest rate of 5%, The interest will be compounded quarterly for this period.

    The formula used by the bank will be A = P x (1 + r/n)nt I = A - P.

    Maturity Value (A) = P x (1 + r/n)nt

    = 15000 x (1 + 0.05/4)4x2

    = 15000 x (1 + 0.0125)8

    = 15000 x (1.0125)8

    = 15000 x 1.104486101

    Making the Maturity Value (A) = Rs. 16567.29.

    And hence leading to the Maturity Value (FD) = Rs. 16567.29

    Interest Earned Amount (I) = Rs. 1567.29.

    What are the factors affect the changes in rate of Fixed Deposits?

    Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit.

    Policies of the Reserve Bank of India - The several norms and restrictions posed by the Reserve Bank of India, in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc.

    Recession - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial market. With this release the funds in the cash reserve reduces and hence again affects Fixed Deposits, loans etc.

    Inflation - When prices of goods and items become more expensive on a daily basis, the opposite of recession, banks and lending institutions are scared of the devaluation of the rupee, and reducing the purchasing amount over the amount lent out. To ensure the losses of interest over the amount lent. Banks will offer higher interest rates on Fixed Deposits.

    Fixed Deposit changes over a period of years

    The rate of Fixed Deposits have changed over the last few financial years, in 2000-01 the rate was the highest, and stood at 9.50% -10.00%, the rate started to make a downward trend when they fell to 8.00% - 8.50% in 2001-02. They still continued to decline with the years to come in 2003-04 the fixed deposit rates fell to 5.25% -5.50%. In 2004-05 the rate climbed a little and went up to 5.75% - 6.25%, 2005-06 6.25% - 7.00%, and in 2006-07 stood at 6.50% - 8.00%. The current year’s fixed deposit rates stands at anywhere between 6.25% - 9.25%, provided by different banks for different amounts and terms of these fixed deposits.

    Best FD Rates Based on Tenure 2016

    Fixed deposits are savings options for the risk-averse common man and the rates offered on these deposits are mostly the only basis of choosing them over any other savings medium. Some of the top ranking fixed deposits of 2016 are as follows

    Top 10 Fixed Deposit Rates for 1 Year Deposits

    1 year fixed deposits are meant for people who can afford only to have their money for that long a duration as a deposit. Land owners and property owners who don’t want any market risk can go for this option. In India, Shriram City Union outranks most banks with a high interest rate for 1 year deposits, followed closely by RBL Bank. Bandhan Bank, being relatively new still has the upper hand over many others in terms of interest rate offered. Mahindra Finance and Shriram Transport Finance come in at the fourth and fifth position. Post these top 5 leaders, the remaining institutions that can offer a good rate of interest are the Indian Post Office, Sundaram Finance, LIC Housing, ICICI Home Finance and IndusInd Bank. Interest rates offered by these institutions range from 8 percent to 8.75 percent per annum.

    Top 10 Fixed Deposit Rates for 2 Year Deposits

    Fixed deposits are relatively risk free investments that can be used by people who normally have a lump sum amount to invest. Since the interest rates offered are comparatively higher than that of savings or current accounts, fixed deposits become a more lucrative investment option for the traditional investor. Two year deposits normally tend to have slightly higher rates than one year terms, more so because of the longer term of deposit. The five leaders in the 2 year term deposits as per the interest rates are RBL Bank, Shriram City Union Finance, Bandhan Bank, India Post and LIC Housing Finance Limited. Another wing of the Shriram Group, the Shriram Transport Finance Company takes up the sixth position, followed closely by Mahindra Finance. ICICI Home Finance, Sundaram Finance and Laxmi Vilas Bank occupy the bottom three rungs of the ladder. The diversity of interest rates offered for 2 year deposits has a wider margin, the lowest being 7.9 percent per annum and the highest being 9.14 percent per annum.

    Top 10 Fixed Deposit Rates for 3 Year Deposits

    As the term of deposits increase, interest rates offered by banks and financial institutions also tend to be higher. Though there might be some odd ones out that reduce their interest rates for the 3 years investing period. This medium long tenure is mostly opted for by people with lease contracts that have high penalty values. Since fixed deposits are relatively risk free, it makes for a wise decision to use such investing periods for wealth growth. The leader in this category is Shriram City Union Finance that has the highest possible interest rate. RBL Bank stays close at its heels though fractions of percentiles lower at the second place. Shriram Transport Finance Company comes in at third cutting it close with RBL Bank. Indian Post Office manages to climb into the top five in this category being at the fourth position and the list closes with LIC Housing Finance Limited. Bandhan Bank comes in at sixth with several fractions lower of a percentage. Sundaram Finance, Mahindra Finance, Gruh Finance Limited and ICICI Housing Finance come in at the closing of the top 10. The lower end of interest rates offered comes at 8 percent per annum and the highest rate of interest offered is at 9.84 percent per annum.

    Top 10 Fixed Deposit Rates for 4 year Deposits

    When considering people who are home-owners and landlords and are offering leases for their property, 4 year and 5 year deposits in fixed deposits are a good idea when people are averse to risks that are offered through the market. Though the return on the deposits are less as compared to stocks and equities, one’s investment stays very secure. Four years is one of the long term commitments in fixed deposits and many financial institutions offer great returns on the same. While Shriram City Union Finance Fixed Deposit stays right at the top of the list with an amazing interest rate that reaches double digits, it is closely followed by RBL Bank at the second position. PNB Housing Finance Limited comes in at the third position with a slightly lower rate. The Shriram Transport Finance Company Limited has a fixed deposit rate that slightly rivals that of PNB Housing and comes in at position four. Coming in at fifth is Bandhan Bank with its fixed deposit rates that are among the higher ones in the market. Mahindra Finance occupies position six and is followed by the India Post Office at number seven. ICICI Home Finance, Jammu & Kashmir Bank and Lakshmi Vilas Bank come in at number eight, nine and ten on the list.

    Top 10 FD Rates for 5 Years Deposits

    Fixed deposits for five year terms are the investments that typically dole out the highest possible rate of return, especially with cooperative banks and non-banking financial companies. These durations can be chosen again by property owners who wish to earn sumptuous interest on the security deposit that has been offered for a piece of property. Additionally, it is also the best way to keep one’s funds safe from market risk and have the least liability ever. Shriram City Union Finance currently emerges as the leader in fixed deposits of 5 years duration. It is closely followed in the second position by RBL Bank. Deutche Bank becomes the third in the leader board with great offers on interest rates. Shriram Transport Finance comes in at the fourth position and LIC HFL comes in at fifth. For positions sixth, seventh, eighth, ninth and tenth, the institutions that can be named are India Post Office, Mahindra Finance, PNB Housing Finance Limited, Tamilnad Mercantile Bank and ICICI Home finance. The lowest rate in this category could be 8 percent per annum while the highest would be 10.77 percent per annum.

    Also Know About

    Read Fixed Deposit Rate news or Enjoy it on the go

    • FD rate to go below 7%

      Rates of interest are being revised for a second time in 2016. Prior to this revision, another revision happened in the month of April. State Bank of India has already done one revision. The domestic term rate is now 7.15% for any amount deposit below Rs 1 crore.

      The rate revision was confirmed by an official from the State Bank of India. Almost all the main banks offer rates of 8% or lower. However, the co-operative banks offer higher rates of interest. State Bank of India has not changed the term deposit rate for tenure of 7 days to 45 days and it still stands at 5.50%.

      19th September 2016

    • Rajan Moves to Keep Interest Rates Unchanged

      Widespread criticism was directed at Raghuram Rajan, Reserve Bank of India (RBI) governor, as he moved not to change interest rates. He had stated that though people want the rates lowered, banks cannot lend at 4% while they pay 6% on deposits. He mentioned that people will not deposit their money at 4%. Fixed deposits and recurring deposits have only so much appeal. He stated that low interest rates were not a God-given right. Rajan has been facing many allegations such as the comment from BJP MP Subramanian Swamy’s that he is “mentally not fully Indian”. Rajan dismissed this allegation stating that it is baseless and fundamentally wrong. Focussing on the economy, he said that India is on the right track, but there is still much more work to do.

      20th June 2016

    • Lending and Deposit Rates to be Slashed

      By around April 5, banks will be reducing the interest rates for their deposit slabs to ready themselves for the lending rate cut that is expected to happen in the first quarter of the next fiscal year.

      The Reserve Bank of India is expected to cut interest rate by around 0.25%, post the government’s decision to slash the small savings interest rate by 0.6%. In the coming 15 days, banks might soon do a rate cut for their deposits.

      28th March 2016

    • Government to reduce parking of surplus funds with RBI, affects bulk deposit rates

      The steady rise of interest rates over the last 2 months for deposits >Rs.1,00,00,000 should be softened slightly, as the government plans to tackle the primary symptom of this condition – parking excess surplus funds.

      Conditions of tight liquidity have been prevalent, as the government had parked a large amount of surplus revenue with the RBI – an act that also impacted the RBIs ability to issue clear signals to lenders to lower rates.

      The government now plans to revive spending by parking a smaller portion of tits surplus revenue with the RBI.

      10th March 2016

    • Interest on Small Savings Schemes May Go Down

      Interest rates on small savings schemes such as National Savings Certificate and Public Provident Fund are set to go down. Reportedly, schemes such as the Sukanya Samriddhi Yojana will not be impacted.

      While this will hit your savings and bank fixed deposits, banks will be able to trim the interest rates on loans and bring down your EMIs.

      Under the new formula being proposed, small savings rates are likely to be reduced by around 50 basis points (0.5 percent). These interest rates will be connected to returns on government securities, and products with a maturity period of less than 5 years might be hit. The full details of the changes will be announced by the Finance Ministry in a few days.

      3rd February 2016

    • Small Savings Rate to be decided by end of December

      On the back of requests by banks to reduce the interest rates on small savings schemes, the government stated that it will take a decision on the interest rate cut by the end of this month. The current rates, ranging between 8.7 to 9.3 % per annum are viewed as excessive, with banks vary of passing the complete reduction in policy rates to borrowers. With schemes like PPF, SSA and Post Office savings popular among a majority of the poor income families, the government is expected to tread lightly on this issue.

      6th December 2015

    • Deposit Rates of Small Savings Schemes may fall Affecting Depositors

      The Reserve Bank of India has initiated a talks with the government of India to review the rates of small savings schemes and the government of India may link small savings interest rate to the market rate, considering that market rates are heading south. After the Reserve Bank of India’s second quarter policy review meeting, it has come into notice that deposits rates are likely to fall further.

      It is seen that for one year maturity the deposit rates have gone down nearly 150 bps. Besides, inflation- be it consumer price index-based inflation or the retail inflation has also started mounting up. Inflation was 5% in the month of October which is at a four month high compared to previous year. Such higher inflation usually reduces the actual returns to depositors. According to the Reserve Bank of India analysis, there is a possibility of inflation heading up to 6% by January 2016 and 5% by January 2017. So, the RBI is planning to launch a new formula to calculate base rate so the banks can pass on the benefits to depositor.

      2nd December 2015

    • Fixed Deposits with Lucrative Rates for Seniors

      The repo rate reduction by the Reserve Bank of India and the subsequent request made by the entity to banks to reduce their respective base rates in order to pass on the benefits of lower interest rates on loans and other credit instruments to customers. While lowering of base rates has helped customers in the sector of availing credit lines, fixed deposits have been hit hard by rate cuts.

      Only a handful of banks still offer attractive interest rates and special additions for senior citizens, as of November 2015. Some of the best rates for one or two year terms fixed deposits are available at 8.6% per annum from Lakshmi Vilas Bank’s Dhanchakra Deposit and 8.5% per annum from Karur Vysya Bank for terms of 1 year deposits. Kotak Mahindra Bank, Axis Bank and DCB bank offer 8.4% per annum interest rate on 1 year deposits. Within the 2-year term, DCB also offers a rate of 8.6% per annum.

      The next best rates are 8.45% per annum under the Kuber 400-day deposit from State Bank of Hyderabad, 8.4% per annum on 1 year 10 days to 1 year 20 days deposit term with YES Bank. Crossing over beyond the two year term, DCB emerges victorious with 8.7% per annum as the interest rate. But Lakshmi Vilas Bank again trumps over DCB when deposits are considered within 3 year to 5 year terms.

      As of November 2015, only YES Bank allows premature withdrawals without imposing any penalty.

      24th November 2015

    • Small savings rates to be revised

      The Finance Ministry had announced in September that it will review the rate of interest on small savings that includes post office savings and public provident fund (PPF). This move was taken after bankers said high interest rates on government-run schemes make banks’ fixed deposits uncompetitive.

      The decision to reduce interest rates on small savings schemes, in order to align them with market rates, will be taken by the government by the end of November. The government, however, may not revise interest rates on Senior Citizen’s Savings Scheme and Sukanya Samriddhi Accounts.

      19th November 2015

    • More banks have reduced their lending rate following the RBI’s repo rate cut

      Syndicate Bank and United Bank of India have followed suit of many other private sector banks by reducing their lending rates by almost 0.30% making loans for auto and homes cheaper for both new and existing customers.

      United Bank of India has also reduced their term deposit interest rate for terms deposits of various maturities from 0.25% to 0.50% effective today 5th October 2015. Other banks as well like Oriental Bank of Commerce (OBC) also cut their interest rates on fixed deposit by 0.25 per cent across few maturity terms.

      5th October 2015

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