Fixed Deposit 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.

Know All About FD Interest Rates

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 April 2021.

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
State Bank of India 2.90% to 5.40% 3.40% to 6.20%
ICICI Bank 2.50% to 5.50% 3.00% to 6.30%
HDFC Bank 2.50% to 5.50% 3.00% to 6.25%
Punjab National Bank 3.00% to 5.30% 3.50% to 5.80%
Canara Bank 2.95% to 5.50% 2.95% to 6.00%
Axis Bank 2.50% to 5.75% 2.50% to 6.50%
Bank of Baroda 2.80% to 5.25% 3.30% to 6.25%
IDFC Bank 2.75% to 5.75% 3.25% to 6.25%
Bank of India 3.25% to 5.30% 3.75% to 5.80%
Corporation Bank 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 interest rate for senior citizens is 6.50% p.a.
  • 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 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 April 2021. These are for tenures ranging from 7 days to 10 years.

Name of the Bank General Citizens (p.a.) Senior Citizens (p.a.)
Yes Bank 3.50% to 6.75% 4.00% to 7.50%
IndusInd Bank 3.00% to 6.50% 3.50% to 7.00%
UCO Bank 3.00% to 6.50% 3.50% to 7.00%
United Bank of India 4.00% to 6.50% 4.50% to 7.00%
Union Bank of India 3.00% to 5.60% 3.50% to 6.10%
Allahabad Bank (now Indian Bank) 2.90% to 5.15% 3.40% to 5.65%
Central Bank of India 2.75% to 5.00% 3.25% to 5.50%
Indian Bank 2.90% to 5.15% 3.40% to 5.65%
Indian Overseas Bank 3.40% to 5.20% 3.90% to 5.70%
Bandhan Bank 3.00% to 5.75% 3.75% to 6.50%
DBS Bank 2.50% to 5.50% 2.50% to 5.50%
Andhra Bank 3.00% to 5.60% 3.50% to 6.10%
HSBC Bank 2.25% to 4.00% 2.75% to 4.50%
Syndicate Bank (now Canara Bank) 2.95% to 5.50% 2.95% to 6.00%
Duetsche Bank 1.80% to 5.50% 1.80% to 5.50%
SBM Bank 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 7.00% p.a. which is given by IndusInd Bank for tenures ranging from 7 days 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 3 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 April 2021.

Name of the Bank Saving FD Interest rate offered to General Citizens (p.a.) Interest rate offered to 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 5.30% 5.80%
IDBI Bank Tax Saving FD 5.10% 5.60%

Best Tax Saver FD Interest Rates

  • The highest interest rate on Tax Saver FDs is being offeredby 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 April 2021.

Name of the Bank For General Citizens (p.a.) For Senior Citizens (p.a.)
Jana Small Finance Bank 2.50% to 7.51% 3.00% to 7.75%
Utkarsh Small Finance Bank 3.00% to 7.00% 3.50% to 7.50%
Equitas Small Finance Bank 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 April 2021.

Name of the Bank Tenure Interest rate offered to General Citizens (p.a.) Interest rate offered to Senior Citizens (p.a.)
LIC Housing Finance 12 months to 60 months 5.65% to 5.75% 6.15% to 6.25%
PNB Housing Finance 12 months to 120 months 5.90% to 6.70% 6.40% to 7.20%
ICICI Home Finance 12 months to 120 months 4.30% to 6.45% 4.55% to 6.70%
Shriram City Union Finance 12 months to 60 months 7.25% to 8.09% 7.65% to 8.49%

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.

Features of 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

Flexi Deposit/Auto-Sweep Facility

A flexi fixed deposit is one in which a savings account is linked to the fixed deposit. Some of the features of this kind of deposit are the following:

  • Extra savings can be transferred to and from the savings account into the fixed deposit account
  • The surplus amounts in the savings account earn a higher interest rate
  • Flexible enough to be withdrawn at any time without breaking the FD or paying any penalty
  • There are no additional fees for this facility
  • Multiple FDs can be linked to one single savings bank account.

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.

Fixed Deposit During Coronavirus/Covid-19

The Reserve Bank of India has announced repo rate cuts which may induce banks to reduce the interest rates on fixed deposits in the future.

Frequently Asked Questions

  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 2020?

    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 IDFC Bank, Bank of Baroda, Axis Bank, Canara Bank, Punjab National Bank, HDFC Bank, and SBI.

  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

  • SBI warns customers about fixed deposit related frauds

    The State Bank of India has alerted customers and fixed deposit account holders about new frauds taking place under SBI fixed deposits. The bank had previously seen reports of cybercriminals creating fixed deposits in customer accounts to carry out frauds and siphon money.

    The bank alerted its customers via social media and asked them to control access to the account and not share any personal information with others including passwords, OTPs, CVV or card number. SBI does not ask customers for this information via phone, SMS or email.

    Fraudsters have been creating an FD account by acquiring net banking details and transferring amounts and asking for OTP posing as an SBI official. They are then said to transfer the entire FD amount to their account after tricking the customers to provide the OTP for the transactions.

    14 April 2021

  • Higher fixed deposit interest rates to be given for vaccinated citizens

    Fixed deposit account holders who have vaccinated themselves against COVID-19 will be eligible for a higher interest rate on their FD. The Central Bank of India is offering a higher interest rate by 25 bps or 0.25% for the depositors who have been vaccinated.

    The public sector bank has launched a special fixed deposit scheme called Immune India Deposit Scheme for a tenure of 1,111 days and will be offering an additional 0.25% for the depositors who have received at least one vaccine shot against COVID-19.

    The Central Bank of India has launched the scheme as a social commitment for a healthier society and has requested citizens of India to get vaccinated.

    14 April 2021

  • FD interest rates revised by RBL Bank

    RBL Bank offers its customers a fixed deposit account for regular and senior citizens ranging from a period of 7 days to 20 years. The bank had recently revised its fixed deposit interest rates for various tenures.

    The interest rate for deposits maturing in 7-14 days will be 3.25% and 4.00% for the deposits ranging between 15 and 45 days. For the FDs maturing between 46 and 90 days, the interest rate offered is 4.50%.

    RBL Bank will now be offering an interest rate of 5.00% for the fixed deposits maturing between 91 days to less than 3 months. The rate of interest will be 5.25% for the deposits which will be maturing between 180 days and 24 days. An additional 25 bps will be given for the deposits maturing between 241 days to less than 1 year at 5.50%.

    For the fixed deposits maturing between 2 years to less than 3 years, the rate of interest applicable will be 6.25% and 6.40% for the FDs maturing between 3 years to 5 years. For senior citizens, the interest rate offered will be 0.50% higher than regular citizens.

    13 April 2021

  • Jana Small Finance Bank Releases Revised Fixed Deposit Interest Rates

    Jana Small Finance Bank revised their fixed deposit interest rates on 11 April 2021. Thei deposits range from seven days to ten years. General citizens get interest rates which ranges from 2.5% to 7.25% at Jana Small Finance Bank offers. Senior citizens get an additional 50 basis points and interest rates range from 3% to 7.75%.

    12 April 2021

  • Fixed deposit interest rates changed by HDFC Bank

    HDFC Bank has increased the interest rates by 25 basis points for the fixed deposits maturing between 33 and 99 months and will be effective from 30 March 2021.

    The fixed deposit for 33 months will have an interest rate of 6.2% and the fixed deposits maturing in 66 months and 99 months will have an interest rate of 6.5% and 6.65% respectively. Senior citizens will receive an additional interest rate of 25 bps over the rates for regular citizens.

    30 March 2021

  • HDFC Bank extends Senior Citizen special fixed deposit

    HDFC Bank has extended the special fixed deposit scheme for senior citizens which offers a higher interest rate for the fixed deposits held by senior citizens. The special fixed deposit scheme will be extended till 18 May 2020.

    The senior citizens' special fixed deposit offered by HDFC Bank gives a higher interest rate by 75 basis points for the holders and the rate of interest is 6.25% which was applicable from 13 November 2020.

    Ideally, senior citizens are offered 50 basis points over the regular fixed deposits. However, under the special FD scheme, the senior citizens are entitled to additional 25 basis points for an FD of less than Rs.5 crore and a tenure ranging between 5 years 1 day and 10 years.

    29 March 2021

  • Fixed deposit rates revised by Axis Bank

    The fixed deposit interest rates were revised by Axis Bank was in effect from 18 March. For the fixed deposits maturing between 7 days and 29 days, the interest rate offered will be 2.50%. The rate of interest offered for fixed deposits maturing between 30 days and less than 3 months will be 3% and 3.5% for fixed deposits maturing between 3 months and 6 months.

    Axis Bank offers an interest rate of 4.40% for the fixed deposits maturing in 6 months to less than 11 months and 25 days. For the fixed deposits maturing 11 months and 25 days to less than 1 year and 5 days, the bank offers 5.25% interest rate.

    For long-term deposits, the interest rate for fixed deposits maturing in 2 years to 5 years is 5.40% and 5.75% for the deposits maturing between 5 years and 10 years.

    18 March 2021

  • IDBI Bank revises FD rate

    The fixed deposit interest rates for the IDBI Bank have been revised with effect from 18 March. Post the revision, FD interest rates in IDBI Bank will now range from 2.9% to 5.1% for FDs maturing in 7 days to 20 years. IDBI Bank FD rates for senior citizens range from 3.4% to 5.6%.

    The bank will offer an interest rate of 2.9% for deposits maturing in 7 to 30 days. For 31 to 45 days, the interest rate will be 3%, 3.25% for tenures 46-90 days, and 3.6% interest rate for tenures 91 days to 6 months.

    An interest rate of 4.3% is given for deposits maturing in 6 months to up to one year.

    For deposits maturing in one year to 10 years, the interest rate offered will be 5.1%. And for 10 years to 20 years FDs, the rate of interest will be 4.8%.

    18 March 2021

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