Best Non-Withdrawable Deposit Rates Scheme in India

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.

Interest Rates on Non-Withdrawable Deposit Rates FD

Given below are the latest interest rates offered by top banks under this FD category.

Name of Bank

For General Citizen (p.a.)

For Senior Citizen (p.a.)


3.50% to 6.10 %


Non-Withdrawable Deposit

A Non-Withdrawable Deposit is a deposit that the depositor cannot withdraw until a specified date, time, or event. The funds are usually invested in high-yield savings accounts, certificates of deposit, or another type of investment.

Banks and financial institutions typically use non-withdrawable deposits to raise capital. Non-withdrawable deposits may also encourage customers to maintain a certain balance in their account or prevent them from withdrawing all their money at once.

Features and Benefits of Non-Withdrawable Deposit

Non-Withdrawable deposits offer several features and benefits that can be extremely beneficial for investors. Some of the key benefits and highlights of Non-Withdrawable deposits are:

  • Non-withdrawable deposits typically offer higher interest rates than traditional savings accounts.
  • Non-withdrawable deposits often have no monthly fees or other charges, making them a cost-effective way to save.
  • They provide a guaranteed source of income, which can be helpful in budgeting and planning for the future.
  • These deposits are typically very safe and secure, providing investors with peace of mind.
  • Furthermore, non-withdrawable deposits enable the bank to run a well-established asset liability management system.

Eligibility Criteria of Non-Withdrawable Deposits

The criteria for eligibility for non-withdrawable deposits vary from bank to bank. Indian residents and NRIs above the age of 14 years can invest in non-withdrawable deposits. A Proprietorship firm, partnership firm, commercial organisation, company or corporate body, Hindu undivided Family, associations, clubs, societies, trusts, religious institutions, charitable organisations, educational institutions, municipality, panchayat, Government body, quasi-government body, illiterate or a blind person can open a Non-Withdrawable deposit account.

Importance of Non-Withdrawable Deposits

Non-Withdrawable deposits is important for investors seeking to protect their capital from volatile markets. Investing in a non-callable deposit guarantees that their money will not be subject to early withdrawal penalties, even if market conditions change. This deposit can also provide peace of mind for investors worried about losing their money in a market crash.

Premature Withdrawal of Non-Withdrawable Deposits

Under no circumstances is premature withdrawals, partial withdrawals, or extensions allowed, except in the event of the death of the depositor (single/ joint), bankruptcy, winding up, directions by the court, regulators, receiver, or liquidator. Premature withdrawals are allowed only in these cases, and interest shall be paid at the card rate for regular deposits for the period during which the FD was active.

Banks Offering Non-Withdrawable Deposits

Several banks now offer non-withdrawable deposits, meaning your money is locked in for a set period. This is a great way to save money and earn interest, but it can be a problem if you need access to your money in an emergency. Ensure you understand these deposits' terms and conditions before signing up for one.

The table below shows the Non-Withdrawable Deposit Rates offered by various banks along with the tenure.

Bank Name Tenure Interest Rates
Axis Bank 5 years 4.40% p.a. - 5.75% p.a
SBI 10 years 2.90% p.a - 5.50% p.a
HDFC Bank 10 years 3.25% p.a - 5.75% p.a
ICICI Bank 10 years 2.50% p.a - 5.50% p.a
Bank of Baroda 10 years 2.80% p.a - 5.25% p.a
Punjab National Bank 10 years 3.00% p.a - 5.25% p.a
Bajaj Finance 5 years 6.20% p.a - 7.40% p.a
LC 5 years 5.25% p.a - 6.00% p.a
IndusInd 3 years 6.00% p.a - 6.50% p.a
Shriram Transport Finance 5 years 7.01% p.a - 7.95% p.a

Frequently Asked Questions

What is a Non-Withdrawable Deposit?

A Non-Withdrawable Deposit is a deposit that the depositor cannot withdraw until a specified date, time, or event.

What happens if I break my FD before maturity?

No premature withdrawal/ part withdrawal/ extension is permitted under the scheme, in any case, except in case of death, bankruptcy, or winding up.

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