A fixed deposit (FD) is a type of investment offered by banks and financial institutions, where an investor deposits a lump sum of money for a fixed period of time, typically ranging from a few months to several years, at a fixed rate of interest. The interest rate on FDs is generally higher than the interest earned on savings accounts and the longer the term of the FD, the higher the rate of interest tends to be. A fixed deposit, also known as a term deposit as the investor can choose a period for fixed deposit, which can range from a minimum of 7-14 days to a maximum of 10 years.
FDs are considered low-risk investments because the returns are fixed and guaranteed by the bank or financial institution. They are a popular choice for people who want to earn a fixed return on their savings without exposing themselves to market risks.
|Banks Name||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|State Bank of India||3.00% - 7.10%||3.50% - 7.60%|
|HDFC Bank||3.00% - 7.10%||3.50% - 7.75%|
|Punjab National Bank||3.50% - 7.25%||4.00% - 7.75%|
|ICICI Bank||3.00% - 7.10%||3.50% - 7.60%|
|Axis Bank||3.50% - 7.20%||3.50% - 7.95%|
|Canara Bank||4.00% - 7.25%||4.00% - 7.75%|
|IndusInd Bank||6.25% - 7.75%||6.75% - 8.25%|
|Yes Bank||3.25% - 7.75%||3.75% - 8.25%|
|Union Bank||3.00% - 7.30%||3.50% - 7.80%|
|Indian Bank||2.80% - 6.70%||3.30% - 7.20%|
|IDFC First Bank||3.50% - 7.75%||4.00% - 8.25%|
|Federal Bank||3.00% - 7.25%||3.50% - 7.75%|
|Indian Overseas Bank||4.00% - 7.25%||4.50% - 7.75%|
|Kotak Mahindra Bank||2.75% - 7.20%||3.25% - 7.70%|
|Central Bank of India||3.50% - 6.75%||4.00% - 7.25%|
|IDBI Bank||3.00% - 6.75%||3.50% - 7.25%|
|RBL Bank||3.50% - 7.80%||4.00% - 8.30%|
|UCO Bank||2.90% - 7.15%||2.90% - 7.20%|
|KVB Bank||4.00% - 7.50%||5.90% - 8.00%|
|North East Small Finance Bank||3.00% - 8.00%||3.75% - 8.75%|
|Suryoday Small Finance Bank||4.00% - 9.10%||4.50% - 9.60%|
|Utkarsh Small Finance Bank||4.00% - 8.25%||4.75% - 9.00%|
|Shivalik Small Finance Bank||3.75% - 8.00%||4.25% - 8.50%|
|Unity Small Finance Bank||4.50% - 9.00%||4.50% - 9.50%|
|Saraswat Bank||3.25% - 7.00%||3.75% - 7.50%|
|Nainital Bank||3.25% - 7.10%||3.75% - 7.60%|
|Abhyudaya Bank||4.25% - 7.00%||4.50% - 7.50%|
|Bharat Bank||3.50% - 7.10%||3.50% - 7.50%|
|Janata Sahakari Bank||3.00% - 7.25%||3.00% - 7.75%|
|Thane Bharat Sahakari Bank||3.25% - 6.50%||3.25% - 7.00%|
|Kalyan Janata Sahakari Bank||3.50% - 6.50%||3.75% - 7.00%|
|Cosmos Bank||4.75% - 7.10%||4.75% - 7.50%|
|Dhanlaxmi Bank||3.25% - 7.25%||3.75% - 7.75%|
|CSB Bank||3.00% - 7.50%||3.50% - 8.00%|
|DCB Bank||3.75% - 8.00%||4.25% - 8.50%|
|Tamilnad Mercantile Bank||5.25% - 7.25%||5.25% - 7.75%|
|City Union Bank||5.00% - 7.00%||5.00% - 7.50%|
|Jammu And Kashmir Bank||3.00% - 7.10%||3.50% - 7.60%|
|Karnataka Bank||4.50% - 7.30%||5.00% - 7.30%|
|South Indian Bank||2.65% - 7.40%||3.15% - 7.50%|
|Standard Chartered Bank||2.75% - 7.35%||3.25% - 7.85%|
|State Bank of Mysore||4.25% - 7.75%||4.75% - 8.25%|
|Punjab And Sind Bank||2.80% - 7.35%||3.30% - 7.85%|
|Bank Of Maharashtra||2.75% - 6.35%||3.25% - 6.85%|
|Bank Of India||3.00% - 7.15%||3.50% - 7.65%|
|Ujjivan Small Finance Bank||3.75% - 8.25%||4.25% - 8.75%|
|Jana Small Finance Bank||3.75% - 7.35%||4.45% - 8.05%|
|Equitas Small Finance Bank||3.50% - 8.50%||4.00% - 9.00%|
|AU Small Finance Bank||3.75% - 8.00%||4.25% - 8.50%|
|Capital Small Finance Bank||3.50% - 7.15%||4.15% - 7.80%|
|Fincare Small Finance Bank||3.00% - 8.41%||3.60% - 9.01%|
|ESAF Small Finance Bank||4.00% - 8.50%||4.50% - 9.00%|
Overall, FDs are a safe and reliable investment option, suitable for those who are looking for a fixed return on their investment.
The following entities are eligible to open a Fixed Deposit account in India: -
Fixed Deposit account can either be opened by online process or offline process:
1. Online Process
2. Offline Process
Opening a Fixed Deposit (FD) account is a simple process that can be done at any bank of your choice, whether you already have an existing account with them or not. However, the requirements may vary depending on whether you already have an account with the bank or not.
If you are an existing account holder
If you do not have an existing account
1. The interest earned on all types of FDs is included in the total income and is taxable as per the prevailing slab rate.
2. As per section 80C of the Income-tax Act 1961, the investor gets an exemption of ₹1,50,000 in tax saver FD investment.
3. In the case of a senior citizen (Age above 60 years), a deduction of up to ₹50,000 is available and for non-senior citizens up to ₹40,000.
4. If the PAN is not provided then, in that case, 20% TDS is levied.
5. In case your total income is below the taxable limit i.e. Rs. 2.5 lakhs, you can avoid TDS by submitting Form 15G to the bank.
6. In the case of senior citizens if your total income is below the taxable limit then you can avoid TDS by submitting Form 15H to the bank.
Fixed Deposits (FDs) are a low-risk investment option that provides a fixed rate of return for a specified period. FDs are offered by banks and financial institutions and provide higher interest rates than traditional savings accounts, making them an attractive investment option for those looking to earn higher returns on their savings.
FDs offer several advantages, such as guaranteed returns, flexibility in terms of tenure, ease of opening, and tax benefits. Certain FD schemes also allow for partial withdrawals, which can be a useful tool for meeting short-term liquidity needs.
However, it is important to note that FDs have a lock-in period, and breaking the FD prematurely may result in penalty charges. Investors should carefully evaluate their investment goals and financial needs before opting for an FD scheme and read the terms and conditions carefully to make an informed decision.
No, fixed deposits are not transferable.
No, the rate of interest is different for normal citizens and senior citizens and also different for people above the age of 80 years.
NRIs can also open the FDs or Fixed deposit account and can invest in it by depositing INR, or any other foreign currency. The banks in India offer the customised FD plans for the NRIs, and some of them are non-taxable. For instance, the NRE (NonResident External) account in India, opened by an NRI is not taxed upon by the Government Of India.
FD investment in India is totally secured. No market fluctuation can affect it. The interest rate for an FD scheme also remains fixed during a given time period, until it reaches its maturity.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.