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Fixed Deposit Rates

When it comes to investments, fixed deposits are a preferred option as it offers guaranteed returns. Here, we have compiled the FD interest rates offered by various banks that operate in the country.

Know All About FD Interest Rates

Fixed Deposit Interest Rates by Top 10 Banks in India

Listed in the table below are the interest rates(p.a) offered by top banks for the duration of 7 days to 10 years.

Name of Bank For General Citizens For Senior Citizens
State Bank of India 5.00% to 6.80% 5.50% to 7.30%
ICICI Bank 4.00% to 7.10% 4.50% to 7.60%
HDFC Bank 3.50% to 7.30% 4.00% to 7.80%
Punjab National Bank 5.00% to 6.75% 5.50% to 7.25%
Canara Bank 5.00% to 6.50% 5.50% to 7.00%
Axis Bank 3.50% to 7.20% 3.50% to 7.85%
Kotak Mahindra Bank 3.50% to 6.90% 4.00% to 7.40%
Bank of Baroda 4.50% to 6.60% 5.00% to 7.10%
IDFC Bank 4.00% to 8.50% 4.50% to 9.00%
Bank of India 5.00% to 6.50% 5.50% to 7.00%

Note: The interest rates mentioned in the table are for deposits less than Rs.2 crore as of 31 August 2019.

Highlights of Top Bank FD Rates

  • The tenure of the fixed deposits is in the range between 7 days and 10 years.
  • The highest interest is offered by IDFC Bank among all the banks. It offers interest of 8.50% to general citizens and 9.00% to senior citizens for the tenure of 2 years.

FD Rates Offered by Other Banks Operating in India

Name of the Bank General Citizens (p.a.) Senior Citizens (p.a.)
Yes Bank 5.00% to 7.25% 5.50% to 7.75%
IndusInd Bank 3.75% to 7.50% 4.25% to 8.00%
UCO Bank 4.50% to 6.50% 4.75% to 6.90%
United Bank of India 4.00% to 6.50% 4.50% to 7.00%
Union Bank of India 5.00% to 6.75% 5.00% to 6.75%
Allahabad Bank 5.00% to 6.70% 5.00% to 6.70%
Central Bank of India 4.50% to 6.60% 4.50% to 6.60%
Indian Bank 4.50% to 6.90% 5.00% to 7.40%
Indian Overseas Bank 4.50% to 6.80% 5.00% to 7.30%
Bandhan Bank 3.50% to 7.65% 4.25% to 8.40%
RBL Bank 5.00% to 7.75% 5.50% to 8.25%
DBS Bank 4.00% to 7.25% 4.00% to 7.25%
Andhra Bank 4.00% to 6.80% 4.50% to 7.30%
HSBC Bank 3.00% to 6.00% 3.50% to 6.50%
Syndicate Bank 4.75% to 6.70% 5.25% to 7.20%
Duetsche Bank 6.50% to 8.00% 7.00% to 8.00%
Corporation Bank 5.00% to 6.90% 5.50% to 7.40%

Note: The interest rates offered by the banks are for deposits below Rs.2 crore as of 31 August 2019.

 
 

Banks which offer high interest on Tax Saver FDs

Tax Saver FDs are those under which you can get a tax exemption of up to Rs.1.5 lakh under Section80C of the Income Tax Act, 1961. The tenure of a tax saving FD is 5 years. Listed in the table below are the banks which offer good interest rates to both general and senior citizens FD.

Name of the Bank Interest rate offered to General Citizens (p.a.) Interest rate offered to Senior Citizens (p.a.)
State Bank of India 6.50% 7.00%
ICICI Bank 7.00% 7.50%
HDFC Bank 7.25% 7.75%
Axis Bank 6.75% 7.25%
Bank of Baroda 6.45% 6.95%
IDFC Bank 7.75% 8.25%
Central Bank of India 6.45% -
Punjab National Bank 6.50% 7.00%
IDBI Bank 6.85% 7.35%
Corporation Bank 6.50% 7.00%
Syndicate Bank 6.50% 7.00%

Note: The interest rates mentioned in the table are for deposits below Rs.2 crore as 31 August 2019.

Highest Interest rates offered on FDs by Small Finance Banks

Small Finance banks operating in the country also offer individuals the option of opening a FD account with them. Listed in the table below are the small finance banks that offer the highest interest rates on FDs:

Name of the Bank For General Citizens (p.a.) For Senior Citizens (p.a.)
Jana Small Finance Bank 5.50% to 8.60% 6.10% to 9Highesr.10%
Utkarsh Small Finance Bank 5.00% to 9.00% 5.50% to 9.50%
Equitas Small Finance Bank 5.00% to 8.30% 5.60% to 8.90%

Note: The Small Finance Banks FD interest rates mentioned here are as of 31 August 2019

Interest rates offered by NBFCs (Non-Banking Financial Companies)

Non-Banking Financial Companies (NBFC) also offer you the option of opening an FD account with them. Listed in the table are the NBFCs which offer good interest rates for opening an FD account with them.

Name of NBFC Interest rate (p.a.) Tenure
Bajaj Finserv Limited 8.00% to 8.60% 1 year to 5 years
Mahindra Finance 8.30% to 9.00% 1 year 3 months to 3 years 4 months
LIC Housing Finance 7.80% to 8.00% 1 year to 5 years
PNB Housing Finance 8.25% to 8.45% 1 year to 10 years
Sriram Transport Finance 8.25% to 11.13% 1 year to 5 years

Note: The interest rates mentioned here are as of 31 August 2019

Fixed Deposit 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.

Frequently Asked Questions (FAQs)

What is the minimum period for a fixed deposit?

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

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.

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.

What is the highest interest rate offered on fixed deposits by banks in 2019?

The highest interest rate offered on fixed deposits by banks in 2019 is 8.50% p.a.

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.

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.

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.

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.

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.

Do banks charge a penalty for premature withdrawal of FD?

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

Read Fixed Deposit Rate news or Enjoy it on the go

  • FD with free insurance introduced by ICICI Bank

    A new Fixed Deposit (FD) scheme called FD Health has been launched by ICICI Bank. Under the new scheme, free critical illness cover with a sum assured of Rs.1 lakh is provided along with the FD.

    According to the Head of Retail Liabilities of ICICI Bank, Pranav Mishra, the scheme is a first in the industry as safety and growth features along with critical illness cover is provided. He further added that 33 critical illnesses are covered for a duration of one year. Under the scheme, individuals who are diagnosed with any of the critical illnesses that are listed will not have to liquidate their FD funds when they make a claim. Some of the critical illnesses that are included in the scheme are certain severities that are related to liver disease, kidney failure, lung disease, and cancer. Complimentary critical illness cover is provided for an FD with a tenure of at 2 years and the investment should range between Rs.2 lakh and Rs.3 lakh. However, only individuals who are between the ages of 18 years and 50 years will be eligible for the complimentary critical illness cover.

    16 October 2019

  • Fixed Deposit interest rates reduced by SBI

    Due to the liquidity of the economy, State Bank of India (SBI) has reduced its Fixed Deposits (FD) and bank deposits interest rates. The interest rates on bank deposits have been reduced to 3.25% from 3.50%. The new interest rates will be effective from 1 November 2019.

    Apart from bank deposits, interest rates of bulk deposits and term deposits have been reduced by 30 basis points and 10 basis points by SBI, respectively. The new interest rates are on term deposits that have a tenure ranging between one year and two years. These interest rates came into effect from 10 October 2019. The MCLR has also been reduced by SBI for the FY 2019-2020 for the sixth time. Therefore, personal loans, car loans, and home loans will become cheaper. With effect from 10 October 2019, the new MCLR will be 8.05%. The interest rates have been deducted by 10 basis points by SBI. SBI has also decreased the interest rates on loans to 8.05% from 8.15%. The new interest rates came into effect from 10 October 2019. Recently, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points. The new repo rate has been reduced to 5.15% from 5.40%.

    15 October 2019

  • ICICI Bank’s New FD Scheme Provides Critical Illness Cover

    ICICI Bank launched a new Fixed Deposit (FD) scheme called FD Health which provides critical illness coverage. The scheme provides insurance cover free for the first year. Investors can choose to renew the cover if they wish.

    FD Health provides complimentary critical illness cover of Rs.1 lakh (through ICICI Lombard General Insurance) for opening an FD between Rs.2 lakh and Rs.3 lakh for a tenure of atleast 2 years. The critical illness insurance covers 33 illnesses such as cancer, lung disease, Parkinson’s disease etc.

    This is the second such country-first product the bank has launched. It had also launched FD Life, a fixed deposit scheme that also offers term insurance.

    14 October 2019

  • Paytm Payments Bank announces new FD scheme

    Paytm Payments Bank, one of the largest payments bank operating in the country has announced a new fixed deposit scheme. The bank is offering its customers interest up to 7.5% on term deposits through its partner bank i.e., IndusInd Bank Limited. The new scheme will be launched next month as stated by the Managing Director and Chief Executive Officer of Paytm Payments Bank. The MD and CEO informed that under the new scheme, customers will be able to redeem the partial or complete amount from the FD at any time without any charge.

    The official website of the bank states that term deposits will be booked with a maturity period that provides the highest interest rate. The maturity period mentioned by the payments bank is 13 months. The FD rate will be automatically renewed upon maturity. If the FD is closed prematurely before the completion of 7 days, no interest shall be paid on the deposit. You can open a fixed deposit for as low as Re.1 in the partner banks of Paytm Payments Bank, which has over Rs.500 crore deposits in savings accounts as of April 2019.

    It must be noted here that the payments bank has reduced the interest rate on savings account deposits by 50 basis points. Following the reduction, the interest rate has come down to 3.5% and shall be effective from November 9.

    14 October 2019

  • FD interest rates revised by SBI

    State Bank of India (SBI), the country’s largest bank has revised the fixed deposit interest rates for the second time within a month on Wednesday. The rates were lowered by 10 basis points across select maturities. The reduction in the interest rates comes after Reserve Bank of India (RBI) cut the repo rate by 25 basis points last week.

    The bank slashed the interest rates for deposits that mature in 1 year to less than 2 years. Following the revision, the bank shall offer 6.40% per annum on the above-mentioned tenure. SBI has kept the interest rates for all the other tenures unchanged. It needs to be mentioned here that senior citizens are offered additional interest of 0.50% on all FD tenures by the bank. The new interest rates shall be effective from 10 October.

    Apart from SBI, other lenders like Kotak Mahindra Bank, Punjab National Bank and Axis Bank have also revised the FD interest rates in select maturities of late.

    11 October 2019

  • Fixed Deposit Rates Revised by Axis Bank

    Axis Bank has revised its rates on fixed deposits (FDs) with effect from 4th October 2019. This is the second time that the lender has revised its rates in less than 15 days. The bank had earlier revised its rates on 25th September 2019.

    Axis Bank is offering 3.50% interest on FDs between 7 days to 14 days, 4.00% and 5.20% interest for FDs between 15 days to 29 days and 30 days to 45 days respectively. The interest rate is 5.65% is 46 days to less than 3 months. For FDs with 3 months to less than 6 months, the rate of interest will be 5.75%. The rate of interest is 6.25% for FDs maturing between 6 months to less than 9 months. The rate of interest will be 6.35% for FD maturity tenure 9 months to less than 11 months 25 days. For deposits which will mature in 11 months 25 days to less than 1 year, an interest rate of 6.70% will be paid by the lender.

    10 October 2019

  • Online short-term fixed deposit launched by Axis Bank

    Axis Bank which is India’s third largest bank launched on Monday ‘Express FD’, a digital fixed deposit product, which allows the customer to open a fixed deposit account online within three minutes without having to open a bank account with the lender.

    Express FD comes up with various features such as zero issuance fees, no penalty on pre-mature withdrawal of up to 25% of the amount, and attractive rates of interest.

    The minimum investing amount is Rs.5,000 with the maximum amount going up to Rs.90,000. The tenure can range between 6 months and 1 year. The fund can be deposited via net banking, UPI, or debit card.

    9 October 2019

  • Fixed Deposit Interest Rates Revised by PNB Two Times in a Month

    With effect from 1 October 2019, Punjab National Bank (PNB) has revised the interest rates for fixed deposits (FD) and savings accounts. The new revision in interest rates comes after the monetary policy announcement that was made by the Reserve Bank of India (RBI) on 4 October 2019.

    Compared to general customers, PNB offers senior citizens a 50 bps higher interest rate. FD and savings account interest rates were earlier revised by PNB on 1 September 2019. Due to the revision of interest rates, PNB offers FDs with interest rates that range between 4.5% and 6.5% with maturing periods ranging between 7 days and 10 years, respectively. The interest rates offered by PNB for FDs ranging between 7-45 days and 45-179 days are 4.5% and 5.5%, respectively. The FD interest rates for maturity periods ranging between 7 days and 270 days have remained the same. In the case of FDs ranging between 271 days and less than a year, the interest rate has reduced by 25 bps and is 6%. In the case of FD maturing in 333 days and 1 year, the interest rates have been cut by 20 bps and 10 bps, respectively. Therefore, the interest rates for FDs that mature in 333 days and 1 year are 6.1% and 6.5%, respectively.

    7 October 2019

  • Fixed Deposit Interest Rates Expected to Fall Further

    The repo rates have been cut by the Reserve Bank of India (RBI) again. The repo rate has been cut for the fifth time this year by RBI. The interest rates have been cut by 25 bps by RBI.

    According to industry experts, Fixed Deposits (FD) interest rates are expected to fall further. The reduction of interest rates means that individuals will earn lower returns for any deposits that are being made. However, various other schemes are available for individuals to invest in, where the interest rates are higher when compared to FDs.

    Some of the popular schemes that individuals can invest in are the National Savings Certificate (NSC), the Public Provident Fund (PPF), and the Senior Citizens Savings Scheme. The government has not reduced the interest rates for the above-mentioned schemes for the October to December quarter. The interest rate offered by the PPF scheme is 7.9% at the moment. The interest is also compounded on an annual basis. However, the PPF scheme comes with a lock-in period of 15 years. The Senior Citizens Savings Scheme comes with an interest rate of 8.6% per annum.

    The tenure of the scheme is 5 years and the interest is paid on a quarterly basis. The Sukanya Samriddhi Yojana scheme comes with an interest rate of 8.4% and can be opened by the parent or legal guardian on behalf of a girl child. Tax benefits are provided for any investments made towards the scheme.

    7 October 2019

  • IDBI Bank Revises FD Interest Rates

    With effect from October 1, IDBI Bank has revised the fixed deposit interest rates. The recent revision in the interest rates comes after the September 6 revision. The bank offers a higher interest rate on FDs as compared to savings deposits. An individual can earn interest in the range of 3.50% to 6.65% p.a. for investing in FDs offered by IDBI Bank that has a tenure between 7 days to 20 years.

    For short-term FDs, which range between 7 days to 1 year, IDBI Bank is offering interest in the range of 3.50% to 6.15% per annum to general citizens. Medium-term term deposits attract an interest in the range between 6.40% and 6.65% while on long-term FDs the lender offers a rate of return between 6.00% and 6.35% per annum. Senior citizens are offered additional interest of 0.50% on all tenures.

    It needs to be mentioned here that from October 1, the bank has also introduced repo-linked retail loans.

    4 October 2019

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