Urban Money

Fixed Deposit Interest Rates

A recent survey conducted by the Securities and Exchange Board of India (SEBI) reveals, that 95% of Indians pin their hopes on parking funds in a fixed deposit. Although there are many other profitable investment tools, why do people prefer fixed deposits as their investment? Well, at the very least, we can say it is due to fixed deposit interest rates. Banks and NBFCs offer a good deal of FD interest rates, making it one of the best investment tools.

FD Interest Rates By Top Banks

If you have made it clear in your head that you want to invest in fixed deposits, count on the banks offering the highest FD interest rates. You may need to explore and invest some time in visiting banks websites to understand what they offer. To simplify, we have prepared a list of the top banks that offer the best FD interest rates in India. The FD interest rates are specific to amounts below 5 crores.

Name of Bank

For General Citizen (p.a.)

For Senior Citizen (p.a.)

Axis Bank FD Rate

2.50% to 5.80 %

2.50% to 6.30 %

Bajaj Finserv FD Rate

6.35% to 7.40 %

6.60% to 7.65 %

Bandhan Bank FD Rate

3.00% to 7.00 %

3.75% to 7.50 %

Bank of Baroda FD Rate

3.00% to 5.50 %

3.50% to 6.50 %

Canara Bank FD Rate

2.90% to 5.75 %

2.90% to 6.25 %

Central Bank of India FD Rate

2.75% to 5.60 %

--

CITI Bank FD Rate

1.85% to 3.50 %

2.35% to 4.00 %

Deutsche Bank FD Rate

2.75% to 7.00 %

2.75% to 7.00 %

Equitas Small Finance Bank FD Rate

3.50% to 7.00 %

--

Federal Bank FD Rate

3.00% to 6.10 %

3.50% to 6.75 %

HDFC Bank FD Rate

2.75% to 6.10 %

3.25% to 6.60 %

Housing Development Finance Corporation FD Rate

5.60% to 6.80 %

5.80% to 7.10 %

HSBC FD Rate

2.50% to 6.00 %

3.00% to 6.50 %

ICICI Bank FD Rate

2.75% to 6.10 %

3.25% to 6.60 %

IDBI Bank FD Rate

2.70% to 5.80 %

3.20% to 6.55 %

IDFC FIRST Bank FD Rate

3.50% to 6.90 %

4.00% to 7.40 %

Indian Overseas Bank FD Rate

3.00% to 5.70 %

3.50% to 6.20 %

IndusInd Bank FD Rate

3.50% to 6.75 %

4.25% to 7.50 %

Jana Small Finance Bank FD Rate

2.50% to 7.75 %

3.30% to 8.50 %

Kotak Bank FD Rate

2.50% to 6.10 %

3.00% to 6.60 %

Post Office FD Rate

5.50% to 6.75 %

6.25% to 6.25 %

Punjab National Bank FD Rate

3.00% to 6.10 %

3.50% to 6.60 %

Punjab National Bank Housing Finance FD Rate

6.50% to 7.30 %

--

RBL Bank FD Rate

3.25% to 7.00 %

3.75% to 7.50 %

Standard Chartered Bank FD Rate

3.00% to 6.30 %

--

State Bank of India FD Rate

2.90% to 5.65 %

3.40% to 6.45 %

UCO Bank FD Rate

2.55% to 5.60 %

2.80% to 6.10 %

Union Bank of India FD Rate

3.00% to 5.80 %

--

YES Bank FD Rate

3.25% to 6.75 %

3.75% to 7.50 %

For investors over sixty years old who are more experienced than other investors, banks, and Non-Banking Institutions often offer a greater rate per unit on FDs, typically providing 25 to 50 basis points (0.25 to 0.5%) more. Moreover, banks also provide an additional tax deduction to senior citizens. If FDs dont exceed INR 50,000 annually, no tax will be deducted. This tax benefit to senior citizens is not available in other investment options.

The annual TDS deduction cap for people who don’t fall in the category of senior citizens is INR 40,000. The overall tax burden reduces significantly while investing in FDs as you age, enhancing returns.

Fixed Deposit Scheme by Bank

Tax saving Interest Rates of Top Banks in India.

View All

For the general public and senior citizens, the interest rate for Tax saving is 5.25 % to 6.90 % and 5.75 % to 7.45 %respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

For Senior Citizen (p.a.)

Axis Bank Tax Saving FD

5.25% to 5.75 %

6.25% to 6.25 %

Bank of Baroda Tax saving FD

5.50% to 5.50 %

6.15% to 6.50 %

Canara Bank Tax saving FD

5.50% to 5.50 %

6.00% to 6.00 %

Central bank of india Tax Saver FD

5.50% to 5.50 %

--

Citibank Tax Saver FD

3.50% to 3.50 %

4.00% to 4.00 %

Federal Bank Tax Saver FD

5.75% to 5.75 %

--

HDFC Bank Tax Saver FD

5.30% to 5.30 %

5.80% to 5.80 %

IDBI Bank Tax saving FD

5.80% to 5.80 %

6.55% to 6.55 %

IDFC First Bank Tax saving FD

6.50% to 6.50 %

6.25% to 6.25 %

Indian Overseas Bank Tax saving FD

5.70% to 5.70 %

--

IndusInd Bank Tax saving FD

6.00% to 6.00 %

6.50% to 6.50 %

Punjab National Bank Tax saving FD

5.75% to 6.65 %

5.25% to 6.75 %

RBL Bank Tax saving FD

6.30% to 6.30 %

6.80% to 6.80 %

State Bank of India Tax Saving

5.65% to 5.65 %

6.45% to 6.45 %

UCO Bank Tax saving FD

5.30% to 5.30 %

5.80% to 5.80 %

Union Bank of India Tax saving FD

5.40% to 5.40 %

--

NRO Interest Rates of Top Banks in India.

View All

For the general public and senior citizens, the interest rate for NRO is 2.00 % to 7.35 % and 2.00 % to 7.75 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

For Senior Citizen (p.a.)

Axis Bank NRO FD

2.50% to 5.75 %

--

Canara Bank NRO FD

2.90% to 5.75 %

2.90% to 6.25 %

Citi Bank NRO FD

1.85% to 3.50 %

--

Duetsche Bank NRO FD

1.80% to 6.25 %

--

Equitas Small Finance Bank NRO FD

3.57% to 7.32 %

--

HSBC Bank NRO FD

2.50% to 4.00 %

--

IDBI Bank NRO FD

2.70% to 5.80 %

--

IDFC First Bank NRO FD

4.25% to 6.85 %

--

IndusInd Bank NRO FD

3.50% to 6.75 %

--

Punjab National Bank NRO FD

4.75% to 6.25 %

--

RBL Bank NRO FD

2.25% to 4.00 %

2.75% to 4.50 %

Standard Chartered Bank NRO FD

2.75% to 6.30 %

--

Yes Bank NRO FD

3.25% to 6.75 %

--

NRE Interest Rates of Top Banks in India.

View All

The interest rate for NRI is minimum of 4.90 % and maximum of 6.50 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

Axis Bank NRE FD

5.50% to 5.75 %

Bank of Baroda NRO FD

5.45% to 5.65 %

Canara Bank NRE FD

3.40% to 6.00 %

Central bank of india NRE FD

3.45% to 5.50 %

Citi Bank NRE FD

2.00% to 3.50 %

Duetsche Bank NRE FD

3.85% to 6.25 %

Equitas Small Finance Bank NRE FD

6.00% to 7.00 %

Federal Bank NRE FD

5.45% to 6.40 %

HDFC Bank NRE

3.50% to 6.10 %

HSBC Bank NRE FD

3.10% to 4.00 %

IDBI Bank NRE FD

5.75% to 6.20 %

IDFC First Bank NRE FD

4.50% to 7.00 %

Indian Overseas Bank NRE FD

5.50% to 5.70 %

IndusInd Bank NRE FD

2.75% to 6.50 %

Punjab National Bank NRE FD

5.50% to 6.50 %

Standard Chartered Bank NRE FD

6.00% to 6.30 %

State Bank of India NRE

5.00% to 6.00 %

UCO Bank NRE FD

5.00% to 6.35 %

Union Bank of India NRE FD

5.00% to 5.50 %

Yes Bank NRE FD

5.75% to 7.25 %

Domestic Term Deposits Interest Rates of Top Banks in India.

View All

For the general public and senior citizens, the interest rate for domestic term deposits is 2.25 % to 6.25 % and 2.30 % to 6.75 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

For Senior Citizen (p.a.)

Axis Bank Domestic Term Deposits FD

2.50% to 5.80 %

2.50% to 6.30 %

Bajaj Finance Ltd Domestic Term Deposits FD

6.35% to 7.40 %

6.60% to 7.65 %

Bandhan Bank Domestic Term Deposits FD

3.00% to 7.00 %

3.75% to 7.50 %

Bank of Baroda Domestic Term Deposits FD

3.00% to 5.50 %

3.50% to 6.50 %

Canara Bank Domestic Term Deposits FD

2.90% to 5.75 %

2.90% to 6.25 %

Central bank of india Domestic Term Deposits FD

2.75% to 5.60 %

--

Citi Bank Domestic Term Deposits FD

1.85% to 3.50 %

2.35% to 4.00 %

Duetsche Bank Domestic Term Deposits FD

2.75% to 7.00 %

2.75% to 7.00 %

Equitas Small Finance Bank Domestic Term Deposits FD

3.50% to 7.00 %

--

Federal bank Domestic Term Deposits FD

3.00% to 6.10 %

3.50% to 6.75 %

HDFC Bank Domestic Term Deposits FD

2.75% to 6.10 %

3.25% to 6.60 %

HDFC Ltd Domestic Term Deposits FD

5.60% to 6.80 %

5.80% to 7.10 %

HSBC Bank Domestic Term Deposits FD

2.50% to 6.00 %

3.00% to 6.50 %

ICICI Bank Domestic Term Deposits FD

2.75% to 6.10 %

3.25% to 6.60 %

IDBI Bank Domestic Term Deposits FD

2.70% to 5.80 %

3.20% to 6.55 %

IDFC First Bank Domestic Term Deposits FD

3.50% to 6.90 %

4.00% to 7.40 %

Indian Overseas Bank Domestic Term Deposits FD

3.00% to 5.70 %

3.50% to 6.20 %

IndusInd Bank Domestic Term Deposits FD

3.50% to 6.75 %

4.25% to 7.50 %

Jana Small Finance Bank Domestic Term Deposits FD

2.50% to 7.75 %

3.30% to 8.50 %

Kotak Mahindra Bank Domestic Term Deposits FD

2.50% to 6.10 %

3.00% to 6.60 %

Post Office Domestic Term Deposits

5.50% to 6.75 %

6.25% to 6.25 %

Punjab National Bank Domestic Term Deposits FD

3.00% to 6.10 %

3.50% to 6.60 %

PNB Housing Finance Domestic Term Deposits FD

6.50% to 7.30 %

--

RBL Bank Domestic Term Deposits FD

3.25% to 7.00 %

3.75% to 7.50 %

State Bank of India Domestic Term Deposits FD

2.90% to 5.65 %

3.40% to 6.45 %

UCO Bank Domestic Term Deposits FD

2.55% to 5.60 %

2.80% to 6.10 %

Union Bank of India Domestic Term Deposits FD

3.00% to 5.80 %

--

Yes Bank Domestic Term Deposits FD

3.25% to 6.75 %

3.75% to 7.50 %

Domestic Bulk Term Deposits Interest Rates of Top Banks in India.

View All

For the general public and senior citizens, the interest rate for Domestic Bulk Term Deposits is 2.90 % to 5.50 % and 3.15 % to 5.75 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Corporate FD Interest Rates of Top Banks in India.

View All

The interest rate for NRI is minimum of 5.60 % and maximum of 8.40 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

For Senior Citizen (p.a.)

Bajaj Finance Ltd Corporate FD

6.20% to 7.40 %

6.45% to 7.65 %

HDFC Ltd Corporate FD

6.00% to 6.80 %

6.25% to 7.05 %

ICICI Bank Corporate FD

5.25% to 6.80 %

5.50% to 7.05 %

PNB Housing Finance Corporate FD

6.00% to 7.25 %

6.25% to 7.50 %

Non-Withdrawable Deposit Rates Interest Rates of Top Banks in India.

View All

The investor must be informed of the typical bank fee, which ranges from 0.5 percent to 1 percent. Some large banks, including HDFC Bank, impose a 1 percent penalty for early withdrawal. On the other hand, State Bank of India charges 0% to 0.50 percent and ICICI Bank charges 0.5 to 1 percent of the interest rate.

Name of Bank

For General Citizen (p.a.)

HDFC Bank NRO

3.50% to 6.10 %

NRI Bulk Interest Rates of Top Banks in India.

View All

The interest rate for NRI Bulk is minimum of 6.50% and maximum of 8.25 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

State Bank of India NRI FD Bulk

3.00% to 3.60 %

NRI Interest Rates of Top Banks in India.

View All

The interest rate for NRI is minimum of 4.90 % and maximum of 6.50 % respectively. The minimum deposit permissible under this plan is less then 2 crore

Name of Bank

For General Citizen (p.a.)

State Bank of India NRI FD

2.90% to 5.65 %

Features of Fixed Deposits

Fixed deposits offer investors an array of benefits. Here are what you get when you invest your money in fixed deposits:

Dependable Returns

When you deposit money in FDs, you get promised returns at the time of FD maturity.

Safe investment Tool

The finance market offers you several investment tools, but fixed deposits are considered to be the safest ones. It is not led by market fluctuations, ensuring the investors get the promised returns. The fact that the returns are not dependent on the stock-market swings makes it a safe investment tool.

Fixed Deposit Rates

The FD interest rates range from 2.3% to 7.75%. The offered FD rates vary from one bank to another. Additionally, senior citizens get an interest rate of 0.5-1% more than the one offered to the general citizens. However, the offered fixed deposit interest rate will be subject to deposit time and tenure.

Flexibility

You get the option to withdraw funds from your fixed deposit if needed. Additionally, you can increase the deposit amount by a multiple of ten. In other words, you get high returns with flexible deposit options.

Loan Against FD

The utmost feature you get with FD is that you can take out a loan against FD to meet your financial obligations. This comes in handy if you need urgent funds. There’s no need to make premature withdrawals from your long-saved fixed deposit.

Factors that Affect FD Interest Rates

There are certain factors that affect the FD interest rates. If you are investing in a fixed deposit, it is obvious you are looking for savings and returns. The interest rate you will get becomes crucial as it will determine the returns you will receive in the end. You must be familiar with the factors that affect the interest on fixed deposits.

Below-depicted factors affect the fixed deposit interest rates in banks:

Time Frame of FD Investment

Interest on fixed deposits varies as per the chosen time frame at the time of opening a fixed deposit account. Many banks and NBFCs offer investors high FD interest rates for a specific tenure. For instance, you will get higher FD returns if you opt for a duration of 1.5 years rather than 1 year

Invested Amount

The total amount that you have decided to invest in your FD during the investment tenure also affects the offered FD interest rates. For instance, if you are investing an amount of INR 25,000, you can get an interest rate of 8.75% from the top FD rate providers.

Renewals

Banks and NBFCs allow investors to count on auto-renewal. With auto-renewals, you can secure higher fixed deposit interest rates. Additionally, you dont have to keep track of your FD renewal date. In general, investors can get an additional 0.10% to 0.50% interest rate on their FDs through auto-renewal.

Age of the Investor

Investors age also plays a significant role in determining the applicable interest rate on an FD. Usually, senior citizens earn a higher rate of interest compared to investors of average age. Moreover, banks offer 0.35% higher interest rates of fixed deposits to senior citizens on the contrary to general citizens.

Economic Conditions

Ongoing economic conditions across the nation, together with monetary policy and fiscal policy can create a significant impact on FD interest rates.

Fixed Deposit Interest Rate Calculator

Fixed deposit interest rate calculator is an advanced tool that allows you to compute FD returns by just entering a few values in the calculators. The interest you will get on the deposited amount depends upon the invested amount, duration, offered FD interest rate and frequency of interest computation.

All you have to do is enter the said details in the text area, and the computed value, i.e. fixed deposit returns that you will get, will be displayed on your screen. Now you can compare fixed deposit interest rates offered by numerous banks in one place. Just enter the interest rate banks offer and compare the returns you will get at maturity.

Move forward with the provider that offers the best FD interest rates and higher returns.

Fixed Deposit Interest and Income Tax

As you know all such incomes are subject to income tax. So the very next question that strikes through your mind is whether the income that you will earn through FDs will be taxable or not. So, here is what you must go through before investing in fixed deposits:

  • The income earned through FDs falls in the category of Income from Other Source and is taxable.
  • Banks do not deduct Tax Deducted at Source or TDS if the investors interest income is below INR 40,000 (annually)
  • FD investors must submit the Form 15G as well as Form 15H in the bank. This needs to be done at the beginning of the fiscal year. If you submit the said form on time the TDS will not be deducted, else there will be a TDS deduction too.

CRISIL & ICRA Rating List for Corporate Fixed Deposits

Individuals also have the option to invest in corporate fixed deposits. But before investing in corporate FDs you must get familiar with the credit ratings. Each corporate fixed deposit has a credit rating which acts as a testament to its credibility and consistency as well as stability.

The following table depicts the CRISIL credit ratings:

StandardRating
Highest safetyFAAA
High safetyFAA
Adequate safetyFA
Inadequate safetyFB
High-riskFC
DefaultFD
Not MeaningfulNM

The following table depicts the ICRA credit ratings:

StandardRating
Highest credit qualityMAAA
High credit qualityMAA
Adequate credit qualityMA
Inadequate credit qualityMB
Risk-prone credit qualityMC
Lowest credit qualityMD

Top 5 Corporate FD Rates in India – 2022

The following table lists top five corporate FD rates in India 2022.

Company Name1-year (Interest Rate p.a.)3-year (Interest Rate p.a.)5-year (Interest Rate p.a.)DurationFD Interest rate for Senior Citizen (In Percent)
Shriram Transport Finance Company Limited.6.31%7.48%7.62%12 to 60 months0.5
Shriram City Union Finance Company Limited.6.31%7.48%7.62%12 to 60 months0.5
Muthoot Capital Services Limited.6.25%6.75%7.25%12 to 60 months0.25
Bajaj Finance Limited.6.2%7.4%7.4%12 to 60 months0.25
Kerala Transport Development Finance Corporation Limited6%6%5.75%12 to 60 months0.25

With fixed deposits investors get an incredible opportunity for earning the highest rate of return. The best part about such an investment tool is, that it is a risk-free investment. You can build a corpus by depositing small amounts in a fixed deposit account for a specific duration of time.