FD
Bonds
Blog
Home>Fixed Deposit

Fixed Deposit Interest Rates

Updated 12 Jan 2024

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...Read More
fd_banner

Top FD Interest Rates by Private Sector Banks 2024

Attractive rates and competitive across banks, let's take a look at the various FD rates that are for grabs in the Private banking sector of the country.

Bank's NameGeneral CitizensSenior Citizens
Axis BankAxis Bank3.00% - 7.10%3.50% - 7.75%
ICICI BankICICI Bank3.00% - 7.10%3.50% - 7.60%
HDFC BankHDFC Bank3.00% - 7.25%3.50% - 7.75%
Bandhan BankBandhan Bank3.00% - 7.85%3.75% - 8.35%
City Union BankCity Union Bank5.00% - 7.00%5.00% - 7.50%
CSB BankCSB Bank3.00% - 7.35%3.50% - 7.85%
DCB BankDCB Bank3.75% - 8.00%4.25% - 8.50%
Dhanlaxmi BankDhanlaxmi Bank5.75% - 7.25%6.25% - 7.75%
Federal BankFederal Bank3.00% - 7.30%3.50% - 8.07%
IDBI BankIDBI Bank3.00% - 6.80%3.50% - 7.30%
IDFC First BankIDFC First Bank3.50% - 7.50%4.00% - 8.00%
IndusInd BankIndusInd Bank3.50% - 7.50%4.25% - 8.25%
Jammu & Kashmir BankJammu & Kashmir Bank3.00% - 7.10%3.50% - 7.60%
Karnataka BankKarnataka Bank4.50% - 7.30%6.30% - 7.70%
Karur Vysya BankKarur Vysya Bank4.00% - 7.20%5.90% -7.70%
Kotak Mahindra BankKotak Mahindra Bank2.75% - 7.25%3.25% - 7.75%
Nainital BankNainital Bank3.25% - 7.10%3.75% - 7.60%
RBL BankRBL Bank3.50% - 7.80%4.00% - 8.30%
Yes BankYes Bank3.25% - 7.75%3.75% - 8.25%
South Indian BankSouth Indian Bank2.90% - 7.40%3.40% - 7.40%
Standard Chartered BankStandard Chartered Bank2.75% - 7.35%3.25% - 7.85%
Tamilnad Mercantile BankTamilnad Mercantile Bank5.25% - 7.25%5.25% - 7.75%

Top FD Interest Rates by Public Sector Banks 2024

The following table is an indicator of the highest FD rates offered by top banks across the country in the Public Sector arena.

Bank's NameGeneral CitizensSenior Citizens
Bank of BarodaBank of Baroda3.00% - 7.25%3.50% - 7.75%
Union Bank of IndiaUnion Bank of India3.00% - 7.00%3.50% - 7.50%
Canara BankCanara Bank4.00% - 7.25%4.00% - 7.75%
Indian BankIndian Bank2.80% - 6.70%3.30% - 7.20%
Bank of IndiaBank of India3.00% - 7.25%3.50% - 7.75%
Central Bank of IndiaCentral Bank of India3.50% - 6.75%4.00% - 7.25%
State Bank of IndiaState Bank of India3.00% - 7.00%3.50% - 7.50%
Punjab National BankPunjab National Bank3.50% - 7.25%4.00% - 7.75%
Bank of MaharashtraBank of Maharashtra2.75% - 7.00%3.25% - 7.50%
UCO BankUCO Bank2.90% - 7.20%3.15% - 7.70%
Indian Overseas BankIndian Overseas Bank4.00% - 7.25%4.50% - 7.75%
Punjab and Sind BankPunjab and Sind Bank2.80% - 7.35%3.30% - 7.85%

Fixed Deposit Interest Rates for Senior Citizens 2024

As a recognition of their hardwork and longevity, let's take a look at the top FD interest rates for Senior Citizens being offered in India as of 2024.

Bank's NameHighest slab1-year Tenure3-year Tenure5-year Tenure
Axis BankAxis Bank7.60%7.20%7.60%7.75%
ICICI BankICICI Bank7.60%7.20%7.50%7.50%
HDFC BankHDFC Bank7.75%7.10%7.50%7.50%
Bank of BarodaBank of Baroda7.75%7.25%7.55%7.15%
Union Bank of IndiaUnion Bank of India7.50%6.80%7%7.20%
Canara BankCanara Bank7.75%7.40%7.30%7.20%
AU Small Finance BankAU Small Finance Bank8.50%7.25%8.50%7.75%
Ujjivan Small Finance BankUjjivan Small Finance Bank8.75%8.75%7.70%7.70%
Utkarsh Small Finance BankUtkarsh Small Finance Bank9.10%8.60%9.10%8.10%

FD Interest Rates of Top Banks/NBFCs

Attractive, competitive, and trustworthy. The following table indicates the competitive FD rates prevalent in India across various banks/NBFCs as of 2024

Bank's NameGeneral CitizensSenior Citizens
Axis BankAxis Bank3.00% - 7.10%3.50% - 7.75%
ICICI BankICICI Bank3.00% - 7.10%3.50% - 7.60%
HDFC BankHDFC Bank3.00% - 7.25%3.50% - 7.75%
Bajaj FinanceBajaj Finance7.35% - 8.35%7.60% - 8.60%
Bandhan BankBandhan Bank3.00% - 7.85%3.75% - 8.35%
Bank of BarodaBank of Baroda3.00% - 7.25%3.50% - 7.75%
Bank of IndiaBank of India3.00% - 7.25%3.50% - 7.75%
Bank of MaharashtraBank of Maharashtra2.75% - 7.00%3.25% - 7.50%
Canara BankCanara Bank4.00% - 7.25%4.00% - 7.75%
Central Bank of IndiaCentral Bank of India3.50% - 6.75%4.00% - 7.25%
Federal BankFederal Bank3.00% - 7.30%3.50% - 8.07%
IDBI BankIDBI Bank3.00% - 6.80%3.50% - 7.30%
IDFC First BankIDFC First Bank3.50% - 7.50%4.00% - 8.00%
Indian BankIndian Bank2.80% - 6.70%3.30% - 7.20%
IndusInd BankIndusInd Bank3.50% - 7.50%4.25% - 8.25%
Kotak Mahindra BankKotak Mahindra Bank2.75% - 7.25%3.25% - 7.75%
Punjab National BankPunjab National Bank3.50% - 7.25%4.00% - 7.75%
RBL BankRBL Bank3.50% - 7.80%4.00% - 8.30%
State Bank of IndiaState Bank of India3.00% - 7.00%3.50% - 7.50%
Union Bank of IndiaUnion Bank of India3.00% - 7.00%3.50% - 7.50%
Yes BankYes Bank3.25% - 7.75%3.75% - 8.25%

Top FD Interest Rates by Co-Operative Banks 2024

With safety and growth for localized people, let's take a look at the top FD interest rates by Co-operative banks in India being offered as of 2024.

Bank's NameGeneral CitizensSenior Citizens
Saraswat BankSaraswat Bank3.25% - 7.00%3.75% - 7.50%
Cosmos BankCosmos Bank4.75% - 7.10%4.75% - 7.50%
Abhyudaya BankAbhyudaya Bank4.25% - 7.60%4.50% - 8.10%
Bharat BankBharat Bank3.50% - 7.30%3.50% - 7.80%
Janata Sahakari BankJanata Sahakari Bank3.00% - 7.25%3.00% - 7.75%
Kalyan Janata Sahakari BankKalyan Janata Sahakari Bank3.50% - 6.50%3.75% - 7.00%
Thane Bharat Sahakari BankThane Bharat Sahakari Bank3.25% - 6.50%3.25% - 7.00%

Top FD Interest Rates by Small Finance Banks 2024

With some of the highest interest rates in the banking industry, let's take a look at the various rates of FDs that are being offered by Small Finance banks in India.

Bank's NameGeneral CitizensSenior Citizens
AU Small Finance BankAU Small Finance Bank3.75% - 7.50%4.25% - 8.00%
Ujjivan Small Finance BankUjjivan Small Finance Bank3.75% - 8.25%4.25% - 8.50%
Utkarsh Small Finance BankUtkarsh Small Finance Bank4.00% - 8.25%4.50% - 8.75%
Equitas Small Finance BankEquitas Small Finance Bank3.50% - 8.50%4.00% - 9.00%
Fincare Small Finance BankFincare Small Finance Bank3.00% - 8.61%3.60% - 9.21%
Jana Small Finance BankJana Small Finance Bank3.75% - 8.50%4.25% - 9.00%
Suryoday Small Finance BankSuryoday Small Finance Bank4.00% - 9.10%4.50% - 9.60%
Unity Small Finance BankUnity Small Finance Bank4.50% - 9.00%5.00% - 9.50%
ESAF Small Finance BankESAF Small Finance Bank4.00% - 8.50%4.50% - 9.00%
Capital Small Finance BankCapital Small Finance Bank3.50% - 7.50%4.15% - 8.00%
North East Small Finance BankNorth East Small Finance Bank3.00% - 8.50%3.75% - 9.25%
Shivalik Small Finance BankShivalik Small Finance Bank3.75% - 8.00%4.25% - 8.50%

What are features of Fixed Deposit?

  1. Fixed Interest Rate: One of the key features of an FD is that it offers a fixed rate of interest for the entire duration of the investment. 
  2. Tenure: FDs have a fixed tenure, which can range from a few months to several years. You can choose a tenure that suits your investment goals at the time of making FD.
  3. Minimum Investment Amount: Banks and financial institutions have a minimum investment amount for FDs. This can vary from bank to bank and can be as low as a few thousand rupees.
  4. Tax Implications: The interest earned on FDs is taxable as per the Income Tax Act. However, senior citizens can avail of higher interest rates and tax exemptions on the interest earned.
  5. Renewal Option: At the end of the tenure, you can choose to renew the FD for another term or withdraw the investment.
  6. Loan against FD: In case of urgent need of fund, the investor can avail loan against FD. It can be upto 95% based on the Bank’s policy. 
  7. Nomination Facility: FDs allow you to nominate a person who will receive the investment and interest in case of your untimely demise.
  8. Premature Withdrawal: Some FDs have a lock-in period, during which you cannot withdraw your investment without incurring a penalty. However, most banks and financial institutions allow premature withdrawal in case of an emergency, subject to certain terms and conditions.

Overall, FDs are a safe and reliable investment option, suitable for those who are looking for a fixed return on their investment.

Who is eligible to open Fixed deposit in India?

The following entities are eligible to open a Fixed Deposit account in India: -

  • Indian residents
  • NRI
  • Minors
  • Partnership Firms
  • Senior Citizens
  • Societies and Clubs
  • Sole proprietorship
  • Individuals or Joint investors
  • Companies

How to open an Fixed Deposit account?

Fixed Deposit account can either be opened by online process or offline process:

1. Online Process

  • Visit the official website of the bank or download the mobile application
  • Now select ‘Open FD’ option from the main menu
  • Select the type of FD (as per specified by the bank)
  • Fill in all the details and enter the details of the nominee
  • Make the payment
  • Now you will receive the email and message on your registered mobile number about your FD details

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

  • You can simply fill out the FD application form
  • Submit it to your branch.

If you do not have an existing account

  • You will need to complete your KYC (Know Your Customer) requirements by providing identity proof, address proof, and other necessary documents along with the FD application form. 
  • Once the KYC process is completed
  • Submit the FD application form to the bank to open your FD account. 
  • The bank will then process your application and provide you with the necessary details and terms and conditions of the FD account.

Documents Required To Open Fixed Deposit Account

The documents required to open an FD account in India can vary slightly between banks but generally include:

  • Passport
  • Voter ID card
  • Driving License
  • Aadhaar card
  • PAN card
  • Bank statement with cheque
  • Passport-size photographs
  • HUF deed and declaration (for Hindu Undivided Family)

Additional documents may be required for specific types of fixed deposits, such as:

  • Tax-saving fixed deposits: PAN card and proof of income
  • Non-resident Indian (NRI) fixed deposits: NRI status proof and passport

What are advantages of Fixed Deposit?

  1. Guaranteed Returns: Fixed Deposits offer a fixed rate of return that is guaranteed for the entire tenure of the deposit. This makes it a low-risk investment option, as the returns are not affected by market fluctuations.
  2. Higher Interest Rates: FDs typically offer higher interest rates than other savings schemes, such as savings accounts or money market funds. This makes it an attractive option for investors looking to earn higher returns on their investment.
  3. Flexibility: Fixed Deposits offer a range of tenure options, ranging from a few months to several years. This provides investors with the flexibility to choose a tenure that suits their investment needs and goals.
  4. Easy to Open: Opening a Fixed Deposit account is a simple process that can be done at any bank of your choice. It requires minimal documentation and can be done online or offline.
  5. Loan Against FD: In case of any financial emergency, investors can avail a loan against their Fixed Deposit account. This makes it a useful tool for meeting short-term liquidity needs.
  6. Tax Benefits: Certain types of Fixed Deposits offer tax benefits under Section 80C of the Income Tax Act. This makes it an attractive investment option for investors looking to save on taxes.
  7. Joint account holder option: Two or more individuals can open FD together, through a joint account. Any of the account members can deposit, or withdraw money from the account. This makes the FD accounts easier to operate and maintain.
  8. Lock-in period: The "Lock-in Period" associated with Fixed Deposits ensures that the deposited amount remains with the bank for a specified period, and cannot be withdrawn or utilised until the tenure of the FD is complete. This allows the investor to earn interest on the deposited amount for the entire tenure of the FD. The lock-in period may vary depending on the bank and the tenure chosen by the investor. Typically, the longer the tenure of the FD, the higher the interest rate offered by the bank.
  9. Facility of Partial withdrawal: Certain banks offer Fixed Deposit (FD) schemes that allow for partial withdrawals, while the remaining balance in the account continues to earn the same interest rate. These FDs are a more flexible option for investors as they allow for withdrawals in times of need or crisis without having to break the entire deposit.
  10. Automatic renewal: You need not to go to bank for FD renewal everytime, they will get renewed automatically.
  11. DICGC Coverage: Fixed deposits with Banks are subject to insurance coverage of Rs 5 lakh per investor per Bank. Hence, an investor can have multiple FDs with various Banks an it will be secured upto Rs 5 Lakhs with each Bank. 

4 reasons why you need to include FD in your portfolio

  • To be a stable anchor in your investment journey
    Building wealth requires a balanced approach, and fixed deposits (FDs) are crucial in stabilising your portfolio. This stability helps reduce the overall risk, contributing to a smoother and less stressful investment experience. Think of your portfolio as a basket of different assets, each with its own strengths and weaknesses. Mutual funds and equities offer high returns but also carry higher risks. Fixed deposits provide a haven for your investments while generating predictable, guaranteed returns.
     
  • For Time Specific Goals
    When you have a specific financial goal, such as your child's school admission in two years, FDs become your ideal investment partner. Imagine you need Rs. 1.5 lakhs for your child's school admission after two years. With FDs, you can pre-calculate the maturity amount based on the interest rate and chosen tenure. This offers a reliable way to achieve goals that cannot wait and require a specific amount within a fixed timeframe. Their guaranteed returns and predetermined maturity date make them the perfect fit for time-bound financial needs.
     
  • FDs can provide you with tax savings benefits
    While regular fixed deposits offer guaranteed returns, tax-saving FDs provide an extra advantage. These special five-year FDs allow you to claim an income tax deduction under Section 80C of the Income Tax Act, 1961. This means you can grow your savings with guaranteed interest and reduce your tax liability. You can deduct up to ₹1.5 lakh per year invested in tax-saving FDs. However, the interest earned on these FDs is taxable.
     
  • Loan Against FD: A Ready Source of Credit
    Another benefit of FDs is their easy accessibility to credit. You can easily take a loan against your fixed deposit without breaking it. Typically, banks offer loans amounting to 70% of your FD value, making it a readily available source of funds. This feature of fixed deposits adds a layer of flexibility to your investment, allowing you to access funds quickly without sacrificing your investment's guaranteed returns and stability.

What are disadvantages of Fixed Deposit?

  1. Interest earned on fixed deposits is subject to full taxation. This income is categorised under the head “Income From The Other Sources" when filing your Income Tax Returns.
  2. Other financial instruments available that offer tax-free savings options, such as the PPF and government bonds hence are more attractive than FD.
  3. In addition to taxation, interests gained from FDs are also subject to TDS. Banks deduct TDS from the interest accrued at the end of each year.

Taxability of Fixed Deposit

  1. The interest earned on all types of FDs is included in the total income and is taxable per the prevailing slab rate.
  2. As per section 80C of the Income-tax Act 1961, the investor gets a deduction of ₹1,50,000 in tax saver FD investment.
  3. Senior citizens (60 years)  get a TDS exemption if the interest earned on the fixed deposit is less than ₹50,000. For individuals below 60 years, the interest limit for TDS exemption is capped at ₹ 40,000.
  4. If the PAN is not provided, then, in that case, 20% TDS is levied.
  5. If total income is below the taxable limit, i.e. Rs. 2.5 lakhs, one can avoid TDS by submitting Form 15G to the bank.
  6. For senior citizens, if total income is below the taxable limit, one can avoid TDS by submitting Form 15H to the bank.

Conclusion

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.

FAQs

Is Fixed Deposit transferable?

No, fixed deposits are not transferable.

Is the rate of interest on FDs the same for everyone?

No, the rate of interest is different for normal citizens and senior citizens and also different for people above the age of 80 years.

Can NRI open FD?

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.

Is FD investment in India secure?

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: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

wint fd

Earn upto 8.35% interest by investing in FDs with Wint Wealth.

Explore Now