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 November 2021.

Updated on - 02 Dec 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 2.90% to 5.25% 3.50% to 5.75%
Canara Bank FD 2.90% to 5.25% 2.90% to 5.75%
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 2.50% to 5.25% 3.00% to 5.75%
Bank of India FD 2.85% to 5.05% 3.35% to 5.55%
Punjab and Sind Bank FD 3.00% to 5.30% 3.50% to 5.80%

Best FD Rates in India among Top 10 Banks

  • Axis Bank offers the highest FD interest rate of 5.75% p.a. which is for a tenure of 5 years and above for the general public. For senior citizens, the interest rate is up to 6.50%.
  • The second highest interest rate is 5.50% p.a. which is offered by ICICI Bank and HDFC Bank for a tenure of 5 years and above.
  • The third highest interest rate being offered is 5.40% p.a. which is offered by SBI for a tenure of 5 years and above.

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 November 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 3.25% to 6.50% 3.75% to 7.25%
IndusInd Bank FD 2.50% to 5.50% 3.00% to 6.00%
UCO Bank FD 2.75% to 5.00% 3.00% to 5.50%
United Bank of India FD (now Punjab National Bank) 2.90% to 5.15% 3.40% to 5.65%
Allahabad Bank FD (now Indian Bank) 2.90% to 5.15% 3.40% to 5.65%
Central Bank of India FD 2.75% to 5.00% 3.25% to 5.5%
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 5.00% 3.75% to 5.75%
DBS Bank FD 2.50% to 5.50% 3.50%to 6.00%
Andhra Bank FD (now Union Bank) 3.00% to 5.50% 3.50% to 6.00%
HSBC Bank FD 2.25% to 4.00% 2.75% to 4.50%
Syndicate Bank FD (now Canara Bank) 2.90% to 5.25% 2.90% to 5.75%
Duetsche Bank FD 1.80% to 6.25% 1.80% to 6.25%
SBM Bank FD 2.50% to 6.00% 3.00% to 6.50%
Punjab and Sind Bank FD 3.00% to 5.30% 3.50% to 5.80%

Best FD Rates in India among Popular Banks

  • The highest FD rate among the popular banks in India is 6.50% 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 7.25% 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 November 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%
IndusInd Bank Tax Saver Scheme 6.00% 6.50%
HDFC Bank Tax Saving FD 5.35% 5.85%
Canara Bank Tax Saving FD 5.25% 5.75%
Axis Bank Tax Saving FD 5.40% 6.05%
Bank of Baroda Tax Saving FD 5.25% 5.75%
IDFC Bank Tax Saving FD 5.25% 5.75%
Union Bank of India Tax Saving FD 5.40% 5.90%
PNB Tax Saving FD 5.25% 5.75%
IDFC First Bank 5.25% 5.75%
Punjab and Sind Bank 5.30% 5.80%

Best Tax Saver FD Interest Rates

  • The highest interest rate on Tax Saver FDs for the general public is being offered by IndusInd Bank at 6.00% p.a.
  • Axis Bank and Union Bank of India offer the second-highest interest rates for the general public at 5.40% p.a.
  • For senior citizens, the highest interest rate is 6.50% p.a. offered by IndusInd Bank and 6.05% offered by Axis Bank.

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 November 2021.

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
Jana Small Finance Bank FD 2.50% to 6.00% 3.00% to 6.50%
Utkarsh Small Finance Bank FD 3.00% to 6.00% 3.50% to 6.50%
Equitas Small Finance Bank FD 3.50% to 6.50% 4.00% to 7.00%

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 November 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% 5.50% to 6.00%
PNB Housing Finance FD 12 months to 120 months 5.90% to 6.70% 6.15% to 6.95%
ICICI Home Finance FD 12 months to 120 months 5.25% to 6.65% 7.50% to 6.90%
Shriram City Union Finance FD 12 months to 60 months 6.50% to 9.05% 6.80% to 9.35%

Highest 1 Year FD Interest Rates

These are the highest 1-year FD rates offered by banks effective from November 2021:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 4.50% 5.00%
Bank of India 4.35% 4.85%
Punjab National Bank 4.40% 4.90%
Canara Bank 4.40% 4.90%
State Bank of India 4.40% 4.90%
Punjab and Sind Bank 4.50% 5.00%

Highest 2 Year FD Interest Rates

These are the highest 2-year FD rates offered by banks effective from November 2021:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 4.75% 5.25%
Union Bank of India 5.10% 5.60%
Canara Bank 5.10% 5.60%

Highest 3 Year FD Interest Rates

These are the highest 3-year FD rates offered by banks effective from November 2021:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.00% 5.00%
Axis Bank 5.40% 5.90%
State Bank of India 5.10% 5.60%
Punjab and Sind Bank 5.15% 5.65%

Best 5 Year FD Interest Rates

These are the highest 5-year FD rates offered by banks effective from November 2021:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.20% 5.70%
Union Bank of India 5.40% 5.90%
Canara Bank 5.25% 5.75%
Axis Bank 5.40% 6.05%
State 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 interest rates offered by banks in the Flexi Fixed Deposit in India effective from November 2021:

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 31 March 2022

IIn 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 31 March 2022. Earlier, the schemes were valid till 30 September 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 30 basis points, over and above the additional 50 basis points for senior citizens, for tenures of 5 years to 10 years, compared to the card rate for the general public. 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. The additional premium of 0.25% p.a. over and above the 0.50% additional interest rate for senior citizens is applicable till 31 March 2022.
  • ICICI Bank: The Golden Years FD scheme offers 80 basis points additional interest rate so senior citizens can now get 0.30% higher interest rate. The interest rate will now be 6.30% for tenures of 5 years one day up to 10 years for deposits below Rs.2 crore. This scheme is applicable till 8 April 2022.
  • Bank of Baroda: The bank offers additional interest rate of 0.50% higher for all tenors up to 5 years. It also offers 1.00% more for deposits over 5 years and up to 10 years valid up to 31 March 2022.

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. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

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

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

  11. 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

  • Zebpay launches India’s first crypto lending model

    Zebpay has launched India’s first crypto lending model to help people earn interest for their crypto holdings. This first-of-its-kind crypto lending model will comprise two types of fixed deposits, namely, open term and fixed term.

    Under the fixed term scheme, investors will be able to park their cryptos for up to 90 days. Investors will be able to earn up to 3% on Bitcoin and up to 7% on Ethereum and Dai. Users can gain returns of up to 12% on Tether.

    11 November 2021

  • Yes Bank Changes Interest Rates on Fixed Deposits

    Yes Bank has updated interest rates on fixed deposits for regular customers as well as senior citizens. The revised interest rates will be effective from 3 November 2021. Senior citizens can benefit from the higher interest rates on fixed deposits by 50 basis points.

    10 November 2021

  • Bank of Baroda's Senior Citizen Special FD scheme extended till March 2022

    Since the start of June 2020, Bank of Baroda has been offering an additional interest rate of 1% to senior citizens for fixed deposits ranging in tenure from 5 years up to 10 years. This special scheme has now been extended till the month of March 2022. Apart from that, banking services will be provided to senior citizens completely free of charge in the month of October 2021. Senior citizens can also use the video KYC feature to start an account in the bank without stepping out of their homes. The special FD interest rates are applicable for deposits of up to Rs.2 crore for resident senior citizens. For a tenure of up to 5 years, there is 0.50% additional interest rate while for deposits between 5 and 10 years, the additional interest rate is 1%.

    12 October 2021

  • Fixed Deposit Interest Rates Revision by Equitas Small Finance Bank

    After the latest changes in interest rates, regular citizens will get a higher return of 6.00% for fixed deposits that mature within 2 years 1 day 887 days to less than 3 years and 5 years 1 day to 10 years respectively. Senior citizens will get 0.50% additional interest rates on fixed deposits.

    07 October 2021

  • Kotak Mahindra Bank revises interest rates for fixed deposit

    For all term deposits that mature in 3 years and more but less than 4 years, Kotak Bank will give an interest rate of 5.10%. The bank gives all senior citizens 50 basis points more interest rates as compared to the general public. Kotak Mahindra Bank has revised interest rate for fixed deposits (FD) and now for fixed deposits that mature within 7 to 30 days, the interest rate is 2.5%, 31 to 90 days is 2.75%, and 91 to 120 days is 3%. For all term deposits that mature within 3 years and more, but less than 4 years, the bank will give 5.10%. If the fixed deposit matures within 4 years and above but less than 5 years, the interest rate is 5.20%. For all fixed deposits maturing in 5 years and more to and inclusive of 10 years, the bank gives 5.25%.

    06 October 2021

  • IDFC First Bank Modifies Interest Rates on Fixed Deposit

    IDFC Bank has updated the interest rates on its fixed deposit scheme, now effective from 15th September 2021. An applicant can open a fixed deposit account by deposoting a minimum amount of Rs.10,000 for tenure ranging between 7 days and 10 years. Senior citizens will earn an additional 0.5% interest on their deposit.

    For deposits less than Rs.2 crore, IDFC First Bank is offering interest at the rate of 2.50% on FDs due in seven to fourteen days. The lender will provide 2.50% and 2.75% interest rates for deposits tenure ranging between 15-29 days and 30-45 days respectively. For account maturing between 46-90 days and 91-180 days, interest rates of 2.75% and 3.25% will be offered respectively. The bank is also offering 4.50% on FDs due in 181 days or less than a year and 4.75% on term deposits maturing in one to two years.

    17 September 2021

  • Axis Bank Updates Its Fixed Deposit Interest Rates

    Interest rates on fixed deposits (FDs) ranging from 7 days to 10 years have been updated by Axis Bank. For its domestic fixed deposits and NRI fixed deposits, the bank recently revised and published new interest rates. The updated interest rates of Axis Bank are set to take effect from today, September 9, 2021.

    09 September 2021

  • Axis Bank fixed deposit accounts can now be opened with a same-sex partner

    Axis Bank customers now have the facility of opening a fixed deposit account with their same sex partner. The partner can also be made the nominee in the fixed deposit. Customers who are transgender, gender fluid, or non-binary will be given the option of selecting the title of ''Mx'' when opening a fixed deposit account.

    07 September 2021

  • Term deposit rates revised by RBL Bank

    The interest offered on fixed deposits by RBL Bank has been revised effective 1 September 2021. The lender which lets customers open a term deposit account for a period that ranges between 7 days to 10 years offer attractive rates on its fixed deposits. The rate of interest offered on term deposits following the revision stood at 3.25 percent annually for deposits maturing in 7 to 14 days. Those maturing in 15 to 45 days, 46 to 90 days, 91 to 180 days are offered interest of 3.75, 4, and 4.50 percent per annum respectively.

    The interest offered on tenures which range between 3 years and 5 years 1 day stood at 6.30 percent per annum. This was the highest rate of interest offered by RBL Bank on term deposits. For deposits maturing between 181 to 240 days and 241 days to less than a year, the rate of interest offered was 5 and 5.25 percent annually respectively while 6 percent per annum was offered as interest on deposits maturing between 1 year and 3 years. Term deposits having a tenure above 5 years 1 day attracted interest of 5.75 percent annually. It needs to be mentioned here that those above the age of 60 years are offered additional interest of 0.50 percent on all term deposits.

    02 September 2021

  • Citibank revises FD interest rates

    Citibank has revised the term deposit rates with effect from 31 August 2021. Following the revision, deposits less than Rs.2 crore which has a tenure of 7 to 10 days and 11 to 14 days will earn interest of 1.85 percent per annum. Deposits maturing in 15-25 days and 26 to 35 days will attract 1.90 percent per annum as interest while those having a tenure between 46 to 180 days will earn 2.55 percent per annum as interest. Fixed deposits having a tenure of 181 to 270 days attract interest of 2.60 percent per annum while for those maturing between 271 to 540 days, the lender offers 2.75 percent per annum. Deposits having a tenure of 541 to 731 days earn interest of 3 percent annually while those which has a tenure of more than 731 days earn 3.50 percent as interest. Senior citizens are offered additional interest of 0.50 percent on all term deposits by the bank.

    01 September 2021

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.