Fixed Deposit Interest Rates 2021

Fixed deposit are a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens, various interest payment options, and no market-related risks, with income tax deductions. It is important to compare the latest fixed deposit rates among leading banks in the country before opening a new fixed deposit or renewing an existing one. Here are the latest fixed deposit rates for the year 2021.

Fixed Deposit Interest Rates of Top 10 Banks in India for below Rs.2 crore

Given below are the latest interest rates offered by top banks for tenures ranging from 7 days to 10 years as of July 2021.

Updated on - 25 Jul 2021

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
State Bank of India FD 2.90% to 5.40% 3.40% to 6.20%
ICICI Bank FD 2.50% to 5.50% 3.00% to 6.30%
HDFC Bank FD 2.50% to 5.50% 3.00% to 6.25%
Punjab National Bank FD 3.00% to 5.25% 3.50% to 5.75%
Canara Bank FD 2.95% to 5.50% 2.95% to 6.00%
Axis Bank FD 2.50% to 5.75% 2.50% to 6.50%
Bank of Baroda FD 2.80% to 5.25% 3.30% to 6.25%
IDFC Bank FD 2.75% to 5.75% 3.25% to 6.25%
Bank of India FD 3.25% to 5.30% 3.75% to 5.80%
Corporation Bank FD (now Union Bank of India) 3.00% to 5.60% 3.50% to 6.10%

Best FD Rates in India among Top 10 Banks

  • IDFC Bank offers the highest FD interest rate of 5.75% p.a. which is for a tenure of 500 days for the general public. For senior citizens, the interest rate is 0.50% more. Axis Bank also offers the highest interest rate of 5.75% for tenure between 5 years and 10 years. The highest interest rate for senior citizens is 6.50% p.a. which is offered by Axis Bank.
  • The next highest interest rate is 5.60% p.a. which is offered by Corporation Bank, which is now Union Bank of India.
  • The next highest interest rate being offered is 5.50% p.a. for a tenure of up to 5 to 10 years and is being offered by ICICI Bank, HDFC Bank and Canara Bank.

FD Rates Offered by Other Popular Banks in India for below Rs.2 crore

The fixed deposit interest rates offered by other banks in India are given below for deposits below Rs.2 crore, as of July 2021. These are for tenures ranging from 7 days to 10 years.

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
Yes Bank FD 3.50% to 6.75% 4.00% to 7.50%
IndusInd Bank FD 2.75% to 6.25% 3.25% to 6.75%
UCO Bank FD 2.75% to 5.00% 3.00% to 5.50%
United Bank of India FD 4.00% to 6.00% 4.50% to 6.50%
Union Bank of India FD 3.00% to 5.60% 3.50% to 6.10%
Allahabad Bank FD (now Indian Bank) 2.90% to 5.25% 3.40% to 5.75%
Central Bank of India FD 2.75% to 5.10% 3.25% to 5.60%
Indian Bank FD 2.90% to 5.15% 3.40% to 5.65%
Indian Overseas Bank FD 3.40% to 5.20% 3.90% to 5.70%
Bandhan Bank FD 3.00% to 5.50% 3.75% to 6.25%
DBS Bank FD 2.50% to 5.50% 2.50% to 5.50%
Andhra Bank FD (now Union Bank) 3.00% to 5.60% 3.50% to 6.10%
HSBC Bank FD 2.25% to 4.00% 2.75% to 4.50%
Syndicate Bank FD (now Canara Bank) 2.95% to 5.50% 2.95% to 6.00%
Duetsche Bank FD 1.80% to 6.25% 1.80% to 6.25%
SBM Bank FD 3.25% to 6.50% 3.75% to 7.00%

Best FD Rates in India among Popular Banks

  • The highest FD rate among the popular banks in India is 6.75% p.a. which is given by YES Bank for tenures ranging from 5 years to 10 years for the general public.
  • For senior citizens, the highest FD rate among popular banks in India is 7.50% given by Yes Bank for tenure ranging from 5 years and 10 years.

Top 10 Tax Saver FD Interest Rates

Tax-saver FDs offer a maximum deduction of Rs.1.5 lakh under Section 80C of the Income Tax Act with the maximum deposit permissible being Rs.1.5 lakh. The lock-in period is 5 years. Senior citizens are offered 0.50% additional interest rate.

These are the interest rates as of July 2021.

Name of the Tax Saving FD For General Citizens (p.a.) For Senior Citizens (p.a.)
SBI Bank Tax Saving FD 5.30% 5.80%
ICICI Bank Tax Saving FD 5.35% 5.85%
HDFC Bank Tax Saving FD 5.30% 5.80%
Canara Bank Tax Saving FD 5.50% 6.00%
Axis Bank Tax Saving FD 5.75% 6.25%
Bank of Baroda Tax Saving FD 5.25% 5.75%
IDFC Bank Tax Saving FD 5.75% 6.25%
Union Bank of India Tax Saving FD 5.55% 6.05%
PNB Tax Saving FD 5.25% 5.75%
IDBI Bank Tax Saving FD 5.25% 5.75%

Best Tax Saver FD Interest Rates

  • The highest interest rate on Tax Saver FDs is being offered by IDFC Bank and Axis Bank at 5.75% p.a. and 6.25% p.a. for senior citizens.
  • The next highest interest rate is 5.55% p.a. which is being offered by Union Bank of India for the general public

Highest Small Finance Bank FD Interest Rates for Below Rs.2 crore

Small Finance Banks also provide high interest rates on FDs. Here are the highest interest rates for deposits below Rs.2 crore for tenures ranging from 7 days to 10 years effective from July 2021.

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
Jana Small Finance Bank FD 2.50% to 6.75% 3.00% to 7.25%
Utkarsh Small Finance Bank FD 3.00% to 7.00% 3.50% to 7.50%
Equitas Small Finance Bank FD 3.60% to 6.80% 4.10% to 7.30%

Top NBFCs FD Interest Rates (Non-Banking Financial Companies)

NBFCs also offer competitive interest rates on their fixed deposit accounts. Here are the highest interest rates for tenures ranging from 1 year to 5 years for deposits less than Rs.2 crore effective from July 2021.

Name of Bank Tenure For General Citizens (p.a.) For Senior Citizens (p.a.)
LIC Housing Finance FD 12 months to 60 months 5.25% to 5.75% 5.75% to 6.25%
PNB Housing Finance FD 12 months to 120 months 5.90% to 6.70% 6.40% to 7.20%
ICICI Home Finance FD 12 months to 120 months 5.70% to 6.65% 7.95% to 6.90%
Shriram City Union Finance FD 12 months to 60 months 7.25% to 9.73% 7.65% to 10.13%

Highest 1 Year FD Interest Rates

These are the highest 1-year FD rates offered by banks:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.25% 5.75%
Bank of India 4.75% 5.25%
Punjab National Bank 4.50% 5.00%
Canara Bank 4.45% 4.95%
State Bank of India 4.40% 4.90%

Highest 2 Year FD Interest Rates

These are the highest 2-year FD rates offered by banks:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.50% 6.00%
Union Bank of India 5.30% 5.30%
Canara Bank 5.20% 5.70%
Punjab National Bank 5.10% 5.60%
State Bank of India 5.00% 5.50%

Highest 3 Year FD Interest Rates

These are the highest 3-year FD rates offered by banks:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.75% 6.25%
Axis Bank 5.40% 5.90%
Bank of India 5.30% 5.80%
HDFC Bank 5.15% 5.65%
Bank of Baroda 5.10% 5.60%

Best 5 Year FD Interest Rates

These are the highest 5-year FD rates offered by banks:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 6.00% 6.50%
Union Bank of India 5.55% 5.55%
Canara Bank 5.50% 6.00%
Axis Bank 5.40% 5.90%
Bank of India 5.30% 5.80%

Flexi Fixed Deposit/Auto-Sweep Facility

Flexi Fixed Deposits offer the combined benefits of a fixed deposit (with its assured and safe returns) with the easy liquidity of savings and current accounts. These are the banks that offer the Flexi Fixed Deposit in India:

Name of Bank Tenure For General Citizens (p.a.) For Senior Citizens (p.a.)
State Bank of India 5 years to 7 years 5.40% 6.20%
Axis Bank 6 months to 5 years 4.40% to 5.40% 4.65% to 5.90%
ICICI Bank 1 year to 10 years 4.90% to 5.50% 5.40% to 6.30%

Senior Citizen Fixed Deposits

Fixed deposits for senior citizens have some features that differentiate them from fixed deposits for the general public, such as:

  • The depositor should be 60 years and above at the time of opening the fixed deposit account
  • Depending on the bank, interest rates are higher by 0.25% to 0.50%
  • The tenure is between 7 days and 10 days
  • Loan against FD can be availed
  • Penalties for premature withdrawal are the same as for the general public

4 Special Fixed Deposit Schemes for Senior Citizens, Extended till 30 September 2021

In order to ensure that the interest income of senior citizens during the coronavirus pandemic, special fixed deposit schemes were introduced which offered additional 50 basis points. The special FD schemes that are provided to senior citizens by ICICI Bank, Bank of Baroda, HDFC Bank, and State Bank of India (SBI) have been extended until 30 September 2021. Earlier, the schemes were valid till 30 June 2021. The schemes were introduced in May 2020 and were provided to senior citizens who open an FD account with a tenure of 5 years and above.

These are the banks that offer these special FD schemes for senior citizens:

  • State Bank of India: SBI's Wecare Deposit offers an additional 80 basis points on the interest rate above the general public's applicable rate. The interest rate applicable under this FD scheme is 6.20% p.a.
  • HDFC Bank: The bank's Senior Citizen Care FD offers 75 basis points additional interest rate which is now 6.25% p.a. under this scheme.
  • ICICI Bank: The Golden Years FD scheme offers 80 basis points additional interest rate so senior citizens can now get 6.30% p.a.
  • Bank of Baroda: The bank offers additional interest rate of 100 basis points under this scheme for a tenure ranging from 5 years to 10 years. The applicable interest rate will be 6.25% p.a. for senior citizens.

Factors that Affect FD Interest Rates

There are many factors that affect FD interest rates, some of which are given below:

  • Deposit Tenure: The lower the tenure, the lower will be the interest rate and the higher or medium range the tenure, the higher the interest rate will be.
  • Deposit Amount: Higher deposit amounts will fetch you higher interest rates, especially bulk deposits exceeding Rs.1 crore.
  • Depositor type: Senior citizens typically get 0.25% to 0.50% additional interest rate on fixed deposits.

Fixed Deposit Interest Rate Calculator

The interest you can earn on your deposited amount depends on multiple factors, including the amount invested, tenure, rate of interest, interest computation frequency, and taxation. You can calculate the returns on your investment by using an FD calculator. The entire process of calculating the amount is easy and hassle-free. All you need to do is enter the deposit term, choose the type of FD (reinvestment, quarterly, or monthly payment), the investment amount, the date of account opening, and the interest rate.

Fixed Deposit Interest and Income Tax

  • The income you earn on your FD is termed as Income from Other Source and it is fully taxable.
  • Banks will not deduct TDS, if your interest income from fixed deposits is less than Rs.40,000 in a year.
  • You need to submit Form 15G and Form 15H with the bank at the beginning of the financial year. Banks will not deduct TDS following the form submission.

CRISIL & ICRA Rating List for Corporate Fixed Deposits

It is beneficial to understand the credit ratings of corporate fixed deposits before you open an account. These ratings are a testament to the consistency, stability, and credibility of the companies that offer these FDs.

The CRISIL credit ratings for FDs fall under the categories as given below:

Rating Standard
FAAA Highest safety
FAA High safety
FA Adequate safety
FB Inadequate safety
FC High risk
FD Default
NM Not Meaningful

The ICRA credit ratings for FDs fall under the categories as given below (these also have positive and negative values)

Rating Standard
MAAA Highest credit quality
MAA High credit quality
MA Adequate credit quality
MB Inadequate credit quality
MC Risk-prone credit quality
MD Lowest credit quality

FAQs on Fixed Deposit Interest Rates

  1. What is the minimum period for a fixed deposit?

    A fixed deposit account can be opened for a minimum period of 7 days.

  2. What is the minimum amount that can be deposited in an FD account?

    The minimum amount varies from bank to bank. It can be as low as Rs.50.

  3. Can I get monthly interest on a fixed deposit?

    Yes, you can get a monthly interest payout on your fixed deposit.

  4. Is FD a good investment?

    Investing in fixed deposits is one of the safest investment options available. The interest offered on FDs by banks makes it a good option.

  5. Which bank FD rate is high in 2021?

    For a tenure of between 7 days to 10 years and a deposit amount of less than Rs.2 crore, some of the banks that offer the highest FD rates are YES Bank, IndusInd Bank, United Bank of India, Deutsche Bank, and SBM Bank.

  6. Can I prematurely withdraw from a Tax Saver Term Deposit?

    No, you can prematurely withdraw a tax saver term deposit as it has a lock-in period of 5 years.

  7. What is the maximum duration for which a FD account can be opened?

    You can open a fixed deposit account for a maximum period of 10 years.

  8. Do all NBFCs offer the option of opening a FD account with them for a period of 10 years?

    No, not all NBFCs offer you open of opening a FD for a period of 10 years.

  9. What is maximum exemption that I can get under tax saver FDs?

    Under tax saver FDs, the maximum exemption you can get is Rs.1.5 lakh.

  10. Under which section of the Income Tax Act is the tax benefit offered on tax saver FDs?

    The tax benefit is offered under Section 80C of the Income Tax Act, 1961.

  11. Do banks charge a penalty for premature withdrawal of FD?

    Yes, banks charge a penalty for premature withdrawal of a FD.

  12. Which bank is best for fixed deposits?

    It is best to choose leading and trusted banks for fixed deposits in India. The top 10 banks are State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Canara Bank, Axis Bank, Kotak Mahindra Bank, Bank of Baroda, IDFC Bank, and Bank of India.

  13. Which is better for FD, bank or post office deposit?

    All fixed deposits, whether in a bank or post office, are not affected by market fluctuations and offer fixed and assured return of interest over the tenure chosen.

  14. How can I get the maximum returns from my fixed deposit?

    To get the maximum returns on your fixed deposit, compare the fixed deposit rates among different tenures in the same bank and among different banks. Make sure that it is not too short nor too long.

Read News About Fixed Deposit Rates

  • RBI brings in New Rules on Unclaimed Deposit with Banks

    On Friday, Reserve Bank of India (RBI) brought in new rules on unclaimed deposit with banks. As per the new rules customers can earn rate of interest as applicable to savings account or the contracted rate of interest whichever is lower even after the Term Deposit (TD) matures, if the proceeds remain unpaid. It needs to be mentioned here that until now only interest rate applicable to savings deposits was paid if the term deposit matured and the proceeds were left unpaid. The new rules are applicable on deposits offered by all commercial banks, small finance banks, local area banks, and co-operative banks.

    06 July 2021

  • Jana Small Finance Bank offers overdraft facility against fixed deposits

    Jana Small Finance Bank who are looking to extend credit support to its Covid-19 affected customers has launched an overdraft (OD) facility at an interest rate of 0.25% against fixed deposits (FD). As per this facility, a person can avail up to 90% of the deposit amount as an overdraft.

    This plan has been launched so as to discourage customers from liquidating their deposits in order to meet their immediate financial requirements. The overdraft facility will ensure that customers continue to earn pertinent rates on their FDs without having the need to liquidate it and yet meet their cash needs. The minimum OD amount has been set at Rs.10,000 and has a duration of 180 days or more and can be withdrawn through simple documentation process. The facility will be available till 30 December 2021, and the applications for this facility will close by 30 June, 2021.

    20 June 2021

  • PayTM Payments Bank launches Fixed Deposit accounts for customers

    Customers of PayTM Payments Bank can now open fixed deposit accounts through the bank. The minimum deposit for opening an FD account with the bank is Rs.100. The interest rate offered by the bank is 5.5% p.a. The fixed deposit account offered by PayTM Payments Bank Limited (PPBL) is in partnership with IndusInd Bank. PayTM Payments Bank will open the FD account in partnership with IndusInd Bank on behalf of the customer with their consent. As per Reserve Bank of India's guidelines for the bank, a customer's total balance at the end of the day cannot exceed Rs.2 lakh. The maturity period of the fixed deposit in one year. The interest on maturity of the deposit is 6.00% p.a. Passbook facility is also offered to those who wish to have it. The amount in the FD can be withdrawn without any penalty or charges at any time. The redeemed amount will be credited in to the customer's account after deduction of TDS. However, no interest will be provided if the FD account is closed before one week of opening the account. The interest rates for other tenures will be announced by the bank.

    14 June 2021

  • YES Bank Fixed Deposit Interest Rates Revised

    YES Bank has recently updated the interest rates for fixed deposit schemes. With effect from 3 June 2021, the new rates will be applicable to both the general public as well as the senior citizens.

    At present, the bank is offering fixed deposit schemes for tenures ranging from 7 days to 10 years. The rates have been revised for almost all the schemes and will affect the short term as well as the long term FD schemes. For short term schemes, the interest rates range from 3.25% to 4%. For the long term schemes, the interest rates start at 5.75% for a tenure of 9 months to less than 1 year. The highest rate offered by the bank is for the tenure ranging from 3 years to 10 years wherein the effective rate of interest is 6.5%. For senior citizens, all the rates will be 0.5% higher than the general rates.

    10 June 2021

  • Yes Bank Revises Interest Rates On FD

    YES Bank revised the fixed deposit rates for both regular and senior citizens.

    The lender on 10 May 2021 revised the interest rate on its term deposits. Yes Bank offers an interest rate of 3.50% on deposits for tenure seven to fourteen days, 3.75% on deposits maturing in 15 to 45 days, and 4.25% on deposits maturing in 46 to 90 days.

    For fixed deposit accounts maturing in 3 months to less than 6 months and 6 months to less than 9 months, interest rates of 4.75% and 5.25% will be offered respectively. For FDs with tenure between 9 months and less than one year, interest rate of 5.50% will be offered.

    Deposits maturing in one year or less than two years will offer a 6.00% rate. FDs with tenure of two to three years will yield 6.25%, while deposits with a maturity period of three to five years will yield 6.50% per cent, and FD accounts with a maturity period of five to ten years will yield 6.75%.

    Senior citizens will receive additional 0.5% interest rate.

    21 May 2021

  • Fixed Deposit interest rates revised by DCB Bank

    DCB Bank adjusted their fixed deposits (FD) interest rates from 4.55% to 6.50%. The lender offers a 4.55% interest rate for tenure ranging from 7 days to 45 days, a 4.50% interest rate for 46 days to 90 days, a 5.25% interest rate for 91 days to less than 6 months, and a 5.70% interest rate for 6 months to less than 1 year.

    The bank offers an interest rate at 5.80% for tenure between 12 months to less than 15 months, 6.00% for 15 months to less than 18 months. DCB Bank is offering 6.40% for tenure of up to 700 days. DCB Bank's interest rate is 6.00% tenure more than 700 days or less than three years, and 6.50% for terms 36 months and more. Senior citizens will enjoy 0.50% higher FD interest rate.

    20 May 2021

  • Fixed Deposit interest rates revised by Punjab National Bank

    The interest rates on Fixed Deposits (FDs) have been revised by Punjab National Bank. The interest rate ranges between 3% p.a. and 5.25% for a tenure that ranges between 7 days and 10 years. For a tenure that ranges between 7 days and 45 days, the interest rate is 3%. Interest rates go up to 4.5% for a tenure of up to 1 year. For FDs that range between 1 year and 3 years, the interest rate is 5.10%. For a tenure that ranges between 5 years and 10 years, the interest rate goes up to 5.25%. The new interest rates came into effect on 1 May 2021. Additional interest rates are provided for senior citizens as well.

    14 May 2021

  • ICICI Bank revises FD rates

    ICICI Bank revised the interest rates on fixed deposits (FDs)across all the tenors.

    An interest rate of 2.5% on deposits for tenure 7 to 29 days, 2.75% for 30- 60 days, and 3% for FDs maturing in 61 to 184 days are being offered by the lender. The bank is offering interest at the rate of 4.40% interest on tenure ranging between 185 days or less than a year.

    Term deposits with tenure of one year or less than 18 months will fetch 3.75% interest. For tenure ranging between 18 months to 2 years will pay interest at the rate of 4%. Term deposits which will mature in two to ten years will earn 4.40% interest.

    12 May 2021

  • IDFC First Bank revises FD rates

    IDFC First Bank has revised the fixed deposit (FD) interest rates with effect from 1 May. The lender offers FDs ranging from seven days to ten years to its customers. The interest rates for IDFC First Bank FDs range from 2.75%p.a. to 6% p.a. Recently, Axis Bank also revised the interest rates on its fixed deposit schemes this month.

    For FDs maturing in seven days to 14 days, an interest of 2.75% will be offered. For 15-29 days and 30-45 days, the lender offers a 3% and 3.50% interest rate respectively. For deposits maturing in 46 - 90 days 4.00%, 4.50% for 91 - 180 days and 5.25% p.a. for 181 days – less than 1 year.

    12 May 2021

  • Axis Bank revised FD rates

    Axis Bank, one of the private sector banks operating in the country has revised fixed deposit interest rates with effect from today. The lender offers term deposits having a tenure between 7 days and 10 years. Following the revision in the rates, the bank is offering a rate of return that ranges between 2.50 percent and 5.75 percent. The highest interest is offered on a tenure of 5 years to 10 years. Senior citizens are offered higher rates on select maturities.

    It needs to mentioned here that Axis Bank had hiked various service charges for its savings bank account holders with effect from 1 May. It had also increased cash withdrawal charges from ATM beyond the free limit and the minimum balance requirements for various types of savings accounts.

    07 May 2021

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