Money won’t grow in your mattress.
It will grow in a Fixed Deposit!
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    Overview of Fixed Deposit

    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
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.6% Quarterly compounding
    Response Time Within 30 minutes
    Up to ₹1Cr
    7 Days to 10 Years
    4.25% - 7% Monthly compounding
    Response Time Within 30 minutes
    Up to ₹1Cr
    15 Days to 20 Years
    4.25% - 7.65% Monthly compounding
    Response Time Within 30 minutes
    Up to ₹1Cr
    7 Days to 10 Years
    5.5% - 7.45% Monthly compounding
    Response Time Within 30 minutes
    Up to ₹1Cr
    7 Days to 10 Years
    4% to 8% Monthly compounding
    Response Time Within 30 minutes
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.2% - 7% Monthly compounding
    Response Time Within 30 minutes
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    7.15% Monthly compounding
    Response Time Within 30 minutes
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    6.5% - 6.95% Monthly compounding
    Response Time Within 30 minutes
    NRI - FD
    Up to ₹1Cr
    1 Year onwards
    7% - 7.5% Monthly compounding
    Response Time Within 30 minutes
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.6% Quarterly compounding
    Response Time Within 30 minutes
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    7% - 7.1% Quarterly compounding
    Response Time Within 30 minutes

    Tell us about yourself & we'll find the best Fixed Deposit offers for you.


    FD Overview

    What is Fixed Deposit?

    A fixed deposit (FD) or term deposit is a type of financial instrument offered by banks and it allows individuals to deposit sums of money for fixed periods of time, like 1 month, 6 months, 1 year, 5 years etc. In general, fixed deposit accounts offer a higher interest rates than savings accounts. Fixed deposits are regarded as safe investments and help people to grow their financial assets without exposing them to volatility and other risks associated with the financial market. Most of the banks offer fixed deposit accounts in India and the interest rates offered with these accounts depend on the tenure of deposit and other factors. The tenure offered with fixed deposits can range from 7 days to 10 years, whereas the interest rate offered can be as high as 9% per annum. Some of banks even offer tax saving fixed deposits that offer tax benefits to customers.

    Features of Fixed Deposit Account

    • The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money).
    • The amount can be deposited only once. For further such deposits, separate accounts need to be opened.
    • The depositor is given a fixed deposit receipt, which depositor has to produce at the time of maturity. The deposit can be renewed for a further period.
    • As per the Traditional scheme, the interest on the FD account is credited to the Savings account specified by the depositor on a monthly basis or on a quarterly basis. For the Reinvestment scheme, the interest is compounded to the principal amount on a quarterly basis.
    • Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the Income Tax Act, 1961.

    Compound interest arises when interest is added to the principal so that from that moment on, the interest that has been added also itself earns interest. This addition of interest to the principal is called compounding.

    The following formula gives you the total amount one will get if compounding is done:-


    A = Final Amount that will be received
    P = Principal Amount (i. e. initial investment)
    r = Annual nominal interest rate (as a decimal i. e. if interest is paid at 5. 5% pa, then it will be 0. 055) (it should not be in percentage)
    n = number of times the interest is compounded per year (i. e. for monthly compounding n will be 12, for half year compounding it will be 2 and for quarter it will be 4
    t = number of years

    1. Annual Compounding: In this case there is no compounding effect because the term is only one year, the same as the compounding frequency. Thus, all we have is simple interest (i. e. , the effective rate is equal to the nominal rate)


    2. Monthly Compounding: In this case there are 12 compounding periods. Interest earned each month is added to the balance and is itself available to earn interest in each succeeding month. Thus, the future value is greater than the amount calculated using annual compounding.


    3. Weekly Compounding: As should be expected,increasing the frequency of the compounding period increases the impact of the interest rate. That it does so should be intuitive: more interest is available sooner to earn more interest. Whereas before we had to wait until the end of the month before the interest was 'added back to the pot', now it is being credited each week.


    4. Daily Compounding: Now instead of earning interest weekly, we earn it daily. As expected the, the impact of the interest rate is magnified. However, this time the impact is not as dramatic as might be expected.


    5. Continuous Compounding: Interest that is, hypothetically, computed and added to the balance of an account every instant. This is not actually possible, but continuous compounding is well-defined nevertheless as the upper bound of "regular" compound interest. The result is the maximum effect that compounding frequency can exert on a given interest rate and term.


    Compare and Get Best Fixed Deposit Interest Rates in India

    Below table (Updated on: 10 Dec 2016) contains best rates for Rs. 1 lakh deposit. Use our Fixed Deposit Rate Comparator to get the best FD rate for other deposit amounts.Check FD rates Now »

    Bank Period Interest % p. a for Rs. 1 Lac
    City Union Bank
    City Union Bank
    30 days 6.75% Get City Union Bank FD Rates »
    Karur Vysya Bank
    Karur Vysya Bank
    60 days 7.25% Get Karur Vysya Bank FD Rates »
    Karur Vysya Bank
    Karur Vysya Bank
    90 days 7.25% Get Karur Vysya Bank FD Rates »
    Karur Vysya Bank
    Karur Vysya Bank
    120 days 7.90% Get Karur Vysya Bank FD Rates »
    Darcl Logistics
    Darcl Logistics
    6 Months 9.25% Get Darcl Logistics FD Rates »
    Bharat Bank
    Bharat Bank
    9 Months 8.50% Get Bharat Bank FD Rates »
    SRS Limited
    SRS Limited
    1 Year 12.00% Get SRS Limited FD Rates »
    Bharat Bank
    Bharat Bank
    1 Year 6 Months 9.00% Get Bharat Bank FD Rates »
    SRS Limited
    SRS Limited
    2 Years 12.25% Get SRS Limited FD Rates »
    SRS Limited
    SRS Limited
    3 Years 12.50% Get SRS Limited FD Rates »
    Bharat Bank
    Bharat Bank
    4 Years 9.25% Get Bharat Bank FD Rates »
    Bharat Bank
    Bharat Bank
    5 Years 9.25% Get Bharat Bank FD Rates »

    Fixed Deposit Tips

    Why a Fixed Deposit is better than a Savings Account

    We can give you a four reasons why a Fixed Deposit makes for a better investment option than a regular Savings Account.

    Earn more Interest with a Fixed Deposit

    Got a substantial amount of money? Don’t let it sit idle in your Savings Account. Put that money in a Fixed Deposit and earn more interest on it.

    Fixed Deposits offer Higher Interest Rates

    Interest rates offered on Fixed Deposits are higher than the interest offered on a Savings Account. Help your money grow with a Fixed Deposit.

    Build a Credit History

    In case you don’t have a credit history, you can create one by using a Fixed Deposit as collateral to secure a loan.

    Senior Citizens get Higher Interest Rates

    If you are over 60 years of age, you can avail a higher rate of interest on Fixed Deposits. You can also open a Fixed Deposit jointly with a senior citizen and get as much as 0.5% more than the interest rate for regular depositors.

    Tax-saver FDs are popular instruments for saving on taxes.

    The amount invested in these FDs qualify for deductions U/S 80C of the Income Tax Act,1961.

    Money invested in these FDs is locked-in for at least 5 years. This is the minimum time-requirement to qualify for the deduction. Premature withdrawal is not allowed. If the deposit is encashed before maturity, the amounts held under this scheme do not qualify for deductions.

    The maximum amount allowed as deduction is Rs.1.5 lakhs. This is as per changes in the law, effected as of Nov.13, 2014. (Under the Bank Term deposit Scheme, 2006 this amount was limited to Rs.1 lakh). The minimum deposit amount is Rs.100.

    Only the principal invested can be claimed as deduction U/S 80C. Interest earned under this scheme is taxable. TDS is charged @10% on the interest earned during a financial year and thereafter according to the deposit-holders applicable tax-bracket.

    Interest rates are determined by the bank offering this product. They are usually in line with other deposits of similar tenures. Interest earned can either be paid-out or reinvested/compounded.

    In case of joint-holdings, deduction can be claimed by the primary holder only.

    The Fixed Deposit Receipt issued when investing is required to claim said deduction.

    Traditionally, Fixed Deposits (FD) have been seen as a secure and profitable medium of investment. However, many people, especially investors in the higher tax brackets, ignore a crucial detail when it comes to Fixed Deposits- the interest earned through FD is taxable in line with an individual’s tax slab. Consequently, this detail ensures that your returns from FD investments is actually lower than expected. For example- If you are in the 30% income tax slab and have a fixed deposit that gives you 9% interest, the actual interest passed down to you after the tax cuts is just 6%. Thus, having a working knowledge of how taxes work in terms of an FD helps you stay on top of things.

    Remember that interest on fixed deposits are calculated annually or on a cumulative basis. However, the same FD is taxed on an accrual basis, meaning revenue is recognized when earned and expenses are recognized when incurred. Thus, the timeline on reception of the interest on your FD isn’t a factor for tax to be imposed upon it. You will have to pay the corresponding tax at the end of the financial year, and even in situations when the interest isn’t taxable, it must be displayed on your IT returns.

    In order to access funds at a short interval, one can avail a loan against fixed deposits held with the bank. It is given in the form of an overdraft against your deposited amount. This is an alternative given to customer by bank instead of breaking the deposit prematurely.

    Loan against fixed deposit is a great option for those looking to avail a loan at a better rate when compared to personal loans where interest rates range from 14-30% p.a. Moreover, you will continue to earn interest on the deposit though you have availed a loan against it.

    Most of the banks allow a loan in the range of 70-90% of the deposit amount. Some banks even offer more than this range. There is no standard on the amount of loan that can be sanctioned. It varies from bank to bank and also upon the amount deposited.

    Interest rate charged on the loan given on a fixed deposit is usually 2-2.5% above the interest paid by the bank on the deposit. Once again, it varies from bank to bank.

    In order to improve credit scores, or manage credit more responsibly, banks offer secured credit cards i.e. credit cards issued against a fixed deposit (FD) held with the issuing bank.

    Credit cards are usually not given to risky customers i.e. those who are not creditworthy. e.g. those who have poor credit scores, bad histories of managing debt, poor track records of paying dues, defaults on payments etc.

    Key features:
    • Credit Limit: Fixed at a percentage of the amount held as FD. It can go up to 100% in some cases. E.g. credit limit of 80% for a FD of Rs.1,00,000 = Rs.80,000.
    • Validity: Usually in line with the tenure of the FD to which it is linked.
    • Interest Rates: Usually lower than that of regular credit cards.
    • Secured: Against the FD held with the issuing bank.

    Credit cards issued against an FD

    Vs. regular credit cards

    In case of payment defaults: Banks can make recoveries from the fixed deposit if dues are not cleared on secured cards. Regular credit cards are unsecured and unpaid dues can either be written off or recovered through legal recourse.

    Vs. Debit Cards

    Debit cards require the cardholder to maintain adequate funds in his/her account prior to using the card. Secured Credit Cards allow cardholders can make spends, payment for which will be fulfilled at a later date.

    • Renewal -
      1. Rolling over of deposits for another term wherein tenor can differ.
      2. Auto-renewal: Deposit-tenor remains unchanged but interest depends on rates prevailing at renewal.
    • Withdrawal -
      1. Encashment of deposits at maturity
      2. Encashment prior to maturity i.e. premature withdrawal subject to penalty Partial withdrawals (prematurely)
      3. Amounts up to Rs.20,000 can be withdrawn in cash. Amounts above Rs.20,000 have to be transferred to the customers savings account or current account or paid-out through a crossed cheque.
      4. Sweep-In facility / Flexi-Deposits: Withdrawals allowed on interest accrued on an FD. The balance is then held as a new deposit.
      5. Tax-saving deposits: No withdrawals allowed for 5 years minimum
    • Either of the two are executed based on the account-holder’s instructions without which the deposit will be automatically renewed.
    • Fixed Deposit Receipt (FDR) has to be surrendered upon renewal or withdrawal.

    Premature withdrawal or Breaking a fixed deposit means withdrawing the money before the maturity expires. This may be necessary if you urgently require the funds or if there are better investment opportunities elsewhere. Many people want to close their old Fixed Deposit account before maturity and open a new account when they see the current interest rates on fixed deposits in the market much higher than rate of interest at which they have opened FD sometime back.

    Most of the banks charge premature withdrawal penalty in the form of a 0. 5-1% lower interest on customers looking to close their Fixed Deposit

    In the event of the FD being closed before completing the original term of the deposit, interest will be paid at the rate applicable on the date of deposit, for the period for which the deposit has remained with the Bank, with premature closure penalty.

    The Bank on request from the depositor, will allow withdrawal of term deposit before completion of the period of the deposit as per terms agreed upon at the time of placing the deposit.For such premature withdrawals and partial withdrawals, the Bank will levy a penalty of 1%, on the applicable rate.Partial withdrawal is permitted in units of Rs 1,000. The balance amount earns the original rate of interest.

    Non-Resident Ordinary (NRO) Rupee Accounts are maintained by non-resident Indians (NRI) in Indian Rupees, to keep funds that belonged to them before they turned NRI. These accounts can also be used to account for fresh earnings in Indian Rupees even after the individual has turned an NRI, from such sources as house rent, dividend and interests, salary etc. The interest earned from such accounts is taxable as per the Indian income tax regulations. Currently, Indian banks offer an interest rate from 8-10% on fixed accounts that fulfil the NRO parameters.

    Alternatively, a Non-Resident External (NRE) Rupee Accounts are maintained by non-resident Indians (NRI) in Indian Rupees and are meant for foreign exchange that is earned in their country of residence and then transferred to India. The interest earned from such accounts is tax free and the funds can be moved around to other accounts without any restrictions. Currently, Indian banks offer an interest rate from 7-10% on fixed accounts that fulfil the NRE parameters.

    • Nominee: Person entitled to receive funds accrued in a particular FD upon depositor’s death.
    • Nominee details required: Name, age, address, relationship; legal guardian’s details (for minors).
    • Nominees are named for every individual deposit.
    • Proof of depositor’s death required to claim funds.
    • Up to two people allowed as nominees.
    • Without a nominee, money accrued in the FD will not be automatically transferred to the account-holder’s next of kin or legal heirs.
    • Nominees are legally trustees of fixed deposit funds. Money so received will have to be transferred the legal heirs (if different from the nominee)
    • Nominations can be effected for FD accounts held in an individual or joint capacity with an “either or survivor” instruction.
    • Nominations can be changed or cancelled subject to the account-holder(s) consent For FDs held by minors, nominations are done by legal operators of the account.

    Fixed deposit can be opened for a minimum period of 7 days to maximum of 10 years.

    All Resident individuals (Including Minors) and HUF are eligible to open a fixed deposit account

    Also Know About

    • Your Guide to Fixed Deposits

      Planning to invest some money in a Fixed Deposit? Here’s all you need to know. A Fixed Deposit is a savings scheme in which you deposit a principal amount for a fixed tenure. On maturity, you get the principal amount including the interest earned. Simple! What’s more? Fixed Deposits give you guaranteed returns on maturity and offer higher interest rates in comparison to a regular savings account. You can also apply for a loan against your Fixed Deposit and get up to 90% of the amount. You can deposit any amount of money in a Fixed Deposit and also choose the tenure. This could range from 7 days to 10 years. Senior citizens can get higher interest rates on Fixed Deposits which vary from bank to bank. You’ve just learnt everything that is important about Fixed Deposits. Ready to start investing?

       Stay up to date! Daily finance news at your fingertips. Explore Fixed Deposit on Mobile App

      22nd August, 2016

    News About Fixed Deposit

    • From Yes Bank to SBI, lenders slash deposit rates to cut the cost of funds

      Last fortnight, the non-food credit in banking system was 9.3%. However, on September 30 when the fortnight ended, the non-food credit in banking system went up to 10.6%. When the fortnight ended, as per the Reserve Bank of India, the review for non-food credit stood at Rs.74.35 lakh crore. There was also some growth with bank deposits which was 11.3% year on year. The previous fortnight, the year on year rate stood at 9.9% which amounted to a total sum of Rs.101.43 lakh crore. This was for the first time that the banking deposits surpassed Rs.100 lakh crore milestone.

      There has been very less growth in the section of loan sanctions. So the 10.6% credit growth is basically a result of the demands from retail segment. The management of different banks have agreed on the same and stated that this would remain their focus area now. The borrowing have been moved by different companies to corporate bond market. This has happened due to the low rates of interest. The lowest MCLR for one year is 9.05% at present. For corporate bonds that come with AAA rating, the benchmark rate set by FIMMDA is 7.6%.

      18th October 2016

    • SEBI Bars Banks from using FDRs as Collateral

      According to SEBI, banks are not allowed to use their own fixed deposits receipts as collateral as clearing or trading stock exchange members, whether they function directly or through associates. This move was made as step towards strengthening SEBI’s risk management mechanism. Clearing corporations received a circular directing them to stop accepting FDRs from banks. For those members who already deposited their FDRs or their FDRS from associate banks, they would be required to replace the collateral with other eligible security within the next 6 months. IOSCO, the international securities regulator body, has its own global benchmarks set for collaterals. The need for Indian markets to align the risk management practices along the lines of global benchmarks has emerged. In light of this, SEBI has taken the step to bar FDRs being used as collateral.

      21st July 2016

    • Positive Real Rates for Depositors

      Before Raghuram Rajan took over as the Governor of the Reserve Bank of India, depositors were facing negative real rates when it came to their savings. People turned to more lucrative investments such as gold, land and other non-financial assets. An important objective for Rajan was to raise the interest for savers with a decent positive real rate. Since January 2014, the rates have been rising as inflation started to fall. In the past few months, the real term deposit rates have been declining. However, the rates have stayed positive making deposits more appealing. For those interested in depositing their money in fixed deposit schemes, the returns will be higher than what they were a few years back.

      21st June 2016

    • Stocks Did in Three Years What KVP and FD Can Do in Eight Years

      Money invested in stocks increase in value much faster than money invested in KVP or FD. It is important to not invest everything in just one investment option but to diversify. Diversification reduces risks that are specific to stocks and provides better returns as well.

      Companies that provide visible growth in earnings are generally chased by companies resulting in an increase in their valuation. However, there are times when investors get trapped while chasing such companies. Although stocks look expensive upfront, they must be evaluated based on their growth, sustainability and visibility of earnings.

      20th June 2016

    • Growth in Bank Deposits Sinks to 5 Decade Low for FY16

      The financial year 2015-16 saw bank deposits grow at 9.72%, a 5 decade low for the segment on a year-on-year basis.

      The low bank deposit rate has caused alarm, given that the government has recently lowered small savings interest rates which has brought them equivalent to bank deposit rates.

      The low rate has been blamed on high interest rates, resulting in depositors withdrawing and spending more.

      Scheduled commercial banks have seen barely 9.9% growth with regard to their deposits, caused due to low inflation and a high real interest rate.

      Credit increased by 11.28% for the same time period, with advances for the period being Rs. 73, 026 billion. Due to the problem of capital shortage and a rise in the number of non-performing assets, the Finance Minister announced a capital infusion of Rs. 25, 00 over the 2016-17 fiscal year.

      28th April 2016

    • Banking Stock falls behind Fixed Deposits

      Bank fixed deposits have had the upper hand while concerning the rate of return that they offer on the investment made. Stocks of banks on the other hand have performed below expectations owing to the increasing NPAs and rate cuts being imposed.

      Only IndusInd Bank had a marginally higher rate of return when compared to popular fixed deposits, being only 9.64%. None of the 26 public sector banks offered positive returns to the investors; only 3 out of 15 banks had their stocks see a positive trend in Financial Year 2016.

      6th April 2016

    • From 1st April, your Small Savings Schemes will earn lesser

      Small savings schemes such as Public Provident Fund also known as PPF, Post Office Monthly Saving Scheme, Post Office Fixed Deposits scheme, Post Office Savings Account etc, may end up providing you with lower earnings. A proposal that will affect millions of investors in these small schemes, the announcement of the rate will be done soon, and the revision of these rates may even be every quarter instead of annually as they used to be. Any scheme related to social sector scheme, such as senior citizens schemes, or related to the girl child will not be affected.

      16th February 2016

    • India set for gradual recovery as fixed deposits become best-performing assets

      According to a research conducted by Morgan Stanley, fixed deposits are the best-performing assets in India. The report also said that India is on the road to uneven and gradual recovery. Measured against the four key parameters of GDP, 2015 was a rather good year for the Indian macro economy as fiscal balance, current account balance, inflation and growth were all good over the course of the year. In comparison with 2014, bank deposits also outperformed property, gold and equities, making it a great year for the Indian macro economy.

      5th January, 2016

    • Loan against fixed deposits jump 13 percent

      Customers are taking short term loans on their fixed deposits to meet the finances during Diwali. The loan against FDs have grown to 13.1%. These loans will attract another 2% higher than the FD rate of the borrower. The depositors do not wish to break deposits that they have received at a higher rate of interest. Loan against shares have shrunk to 26% that the 43% last year at the same time. Banks are approving high risk loans like personal loans and credit cards to meet the increasing demands of the people.

      5th November, 2015

    • Fixed deposits record double digit growth

      Fixed deposit witnessed a growth of around 11% from Rs. 82.89 lakh crore to Rs. 91.63 lakh crore. According to the Reserve Bank of India (RBI), this data of aggregate deposits outstanding was collected on October 2.

      Of the total aggregate deposits, fixed deposits increased by 10.64% to Rs 83.06 lakh crore. On the other hand demand deposits (current account and saving account) rose by 9.6% to Rs 8.5 lakh crore. As compared to October 2, 2015, the outstanding time deposits on October 2, 2014 were Rs 7.5 lakh crore and demand deposits were Rs 7.81 lakh crore.

      3rd November, 2015

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