FD Interest Rates - Check Fixed Deposit Interest Rate in India

FD interest rates offered by a few top banks for a 5-year tenure, like HDFC Bank is 5.75%, ICICI Bank is 5.90%, and SBI Bank is 5.65% currently. A Fixed Deposit is a saving option offered by banks where investors earns interests based on a fixed tenure & deposited amount. Other popular guaranteed fixed return options by insurance companies offer tax-free returns up to 7.2%.

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Fixed Deposit interest rate refers to the bank interest rates to be availed on a fixed deposit scheme.

Provided by various banks and NBFCs, FDs are quite popular among investors as it offers the highest rate of interest and secured returns. FDs are also known as 'term deposits' or 'time deposits'.

With different types of FDs, people invest a fixed amount for a predetermined period, which is referred to as maturity tenure. On maturity, the financial institutions return the principal amount invested along with the fixed deposit interest earned throughout the tenure.

Cumulative and Non-Cumulative FD

Cumulative in general means “in total.” Cumulative fixed deposits are the kind of deposits wherein the interest amount is calculated at the end of the deposit tenure and paid during the time of maturity.

In the case of the non-cumulative fixed deposit scheme, the interest earned is payable regularly as per the FD. Therefore, it is payable either monthly, quarterly, semi-annually, or annually.

Particulars Cumulative Deposits Non-Cumulative Deposits
Payouts Fixed Deposit interest is collected till the completion of the FD tenure Accrued interest is rolled out on a monthly, quarterly, semi-annual, or annual basis
Interest Reinvestment The interest earned is either compounded or reinvested as per bank FD rates The interest earned is paid-off as per the FD rates
Returns on Interest Interest earned is better than the non-cumulative deposits Interest earned is comparatively low
Payment of Interest One-time Regularly
Suitability For salaried employees with regular income or individuals with stable income For individuals with unstable income or during the retirement

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Top Banks Latest Fixed Deposit Interest Rates

One of the safest investment options available in the market, Fixed Deposits offers guaranteed FD rates along with extra interest rate benefits for senior citizens. With no market risk involved compared to other investment options available, FDs are one of the most popular kinds of investments amongst the masses.

Here is a list of the latest fixed deposit interest rates for some top banks in India for less than 2 crore rupees:

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
Allahabad Bank (Indian Bank) Fixed Deposit Interest Rates 2.90% to 5.15% 3.40% to 5.65%
Andhra Bank FD (Union Bank) Fixed Deposit Interest Rates 3.00% to 5.50% 3.50% to 6.00%
Axis Bank Fixed Deposit Interest Rates 2.50% to 5.75% 2.50% to 6.50%
Bandhan Bank Fixed Deposit Interest Rates 3.00% to 5.00% 3.75% to 5.75%
Bank of Baroda Fixed Deposit Interest Rates 2.80% to 5.25% 3.30% to 5.75%
Bank of India Fixed Deposit Interest Rates 2.85% to 5.05% 3.35% to 5.55%
Canara Bank Fixed Deposit Rates 2.90% to 5.25% 2.90% to 5.75%
Central Bank Of India Fixed Deposit Rates 2.75% to 5.00% 3.25% to 5.5%
DBS Bank Fixed Deposit Rates 2.50% to 5.50% 3.50% to 6.00%
HDFC Bank Fixed Deposit Rates 2.50% to 5.50% 3.00% to 6.25%
HSBC Bank Fixed Deposit Rates 2.25% to 4.00% 2.75% to 4.50%
ICICI Bank Fixed Deposit Rates 2.50% to 5.50% 3.00% to 6.00%
IDFC Bank Fixed Deposit Rates 2.75% to 5.75% 3.25% to 6.25%
Indian Bank Fixed Deposit Rates 2.90% to 5.15% 3.40% to 5.65%
Indian Overseas Bank Fixed Deposit Rates 3.40% to 5.20% 3.90% to 5.70%
IndusInd Bank Fixed Deposit Rates 2.50% to 5.50% 3.00% to 6.00%
Punjab National Bank Fixed Deposit Rates 2.90% to 5.25% 3.50% to 5.75%
SBM Bank Fixed Deposit Rates 2.50% to 6.00% 3.00% to 6.50%
State Bank Of India Fixed Deposit Rates 2.90% to 5.40% 3.40% to 6.20%
Syndicate Bank (Canara Bank) Fixed Deposit Rates 2.90% to 5.25% 2.90% to 5.75%
UCO Bank Fixed Deposit Rates 2.75% to 5.00% 3.00% to 5.50%
Yes Bank Fixed Deposit Rates 3.25% to 6.50% 3.75% to 6.95%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

FD interest have fallen consistently over the last 5 years.
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Check Out NBFCs FD Interest Rates

Non-Banking Financial Companies, or popularly known as NBFCs offer interest rates in competition to the Fixed Deposits accounts. Registered under the Companies Act, 1956, NBFC offers banking and financial facilities without being considered as an actual bank in legal terms.

Here is a list of the highest NBFCs interest rates per annum for the year 2022:

Non-Banking Financial Companies General Citizens Interest Rate Senior Citizens Interest Rate Minimum Deposit Tenure
Hawkins Cooker Ltd 8.00% - Rs. 25,000 3 years
Aditya Birla Capital 6.45% 6.70% Rs. 5,000 5 Years
Bajaj Finserve 6.80% 7.05% Rs. 25,000 3-5 years
HDFC Housing Finance 6.70% 6.95% - 8.25 Years
KTDFC Ltd 6.00% 6.25% Rs. 10,000 3 Years
Mahindra & Mahindra Finance Service Ltd 6.05% 6.50% Rs. 5,000 5 Years
Muthood Finance 7.25% - Rs. 1,000 5 Years
Shriram City Union Finance 7.75% 8.05% Rs. 5,000 5 Years
Shriram Transport Finance Company 7.48% 7.78% Rs. 5,000 5 years
Sundram Finance 5.80% 6.30% Rs. 10,000 3 Years

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

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Top Banks 1 Year FD Interest Rates

Rates effective as of May 2022:

Name of Bank General Citizens (per annum) Senior Citizens (per annum)
Bank of India 5.00% 5.25%
Canara Bank 5.30% 5.80%
IDBI Bank 5.15% 5.65%
IDFC First Bank 5.75% 6.25%
Punjab and Sind Bank 5.15% 5.65%
Punjab National Bank 5.10% 5.60%
State Bank of India 5.10% 5.60%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

Top Banks 2 Year FD Interest Rates

Rates effective as of May 2022:

Name of Bank General Citizens (per annum) Senior Citizens (per annum)
Canara Bank 5.45% 5.95%
IDBI Bank 5.25% 6.00%
IDFC First Bank 5.75% 6.25%
Union Bank of India 5.10% 5.60%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

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Top Banks 3 Year FD Interest Rates

Rates effective as of May 2022:

Name of Bank General Citizens (per annum) Senior Citizens (per annum)
Axis Bank 5.40% 5.90%
IDBI Bank 5.50% 6.25%
IDFC First Bank 6.00% 6.50%
Punjab and Sind Bank 5.40% 5.90%
State Bank of India 5.45% 5.95%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

Top Banks 5 Year FD Interest Rates

Rates effective as of May 2022:

Name of Bank General Citizens (per annum) Senior Citizens (per annum)
Axis Bank 5.75% 6.50%
Canara Bank 5.75% 6.25%
IDBI Bank 5.60% 5.35%
IDFC First Bank 6.25% 6.75%
State Bank of India 5.50% 6.30%
Union Bank of India 5.40% 5.90%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

Best Tax Saver FD Interest Rates

Banks deduct Tax Deducted at Source on income earned by interest on fixed deposit as it is an accumulated amount. Tax saving Fixed deposits are a little different from regular Fixed deposits. Under tax saver FDs, a tax amount is exempted up to Rs. 1,50,000/- under Section 80C of the Income Tax Act, 1961.

Even under tax saver FDs, senior citizens have an additional 0.50% interest rate as compared to other individuals. Here is a list of banks that offer the best tax saver FD Interest rates as of March 2022:

Name of the Tax Saving FD General Citizens Interest Rate Senior Citizens Interest Rate
Axis Bank Fixed Deposit 5.75% 6.25%
Bank of Baroda Fixed Deposit 5.25% 5.75%
Canara Bank Fixed Deposit 5.25% 5.75%
HDFC Bank Fixed Deposit 5.30% 5.80%
IDFC Bank Fixed Deposit 5.25% 5.75%
IndusInd Bank Fixed Deposit 6.00% 6.50%
PNB Fixed Deposit 5.25% 5.75%
Punjab and Sind Bank Fixed Deposit 5.30% 5.80%
SBI Bank Fixed Deposit 5.40% 5.90%
Union Bank of India Fixed Deposit 5.40% 5.90%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

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Fixed Deposit for Senior Citizens

Fixed deposits, also known as 'term deposits' or 'time deposits' come with special interest rates for senior citizens. All leading banks provide a fixed deposit facility to senior citizens that come with an array of benefits. One additional advantage for senior citizens is that they get a 0.50% more fixed deposit rate of interest as compared to other Indian citizens.

FD Interest Rates for Senior Citizens

Generally, senior citizens prefer depositing their savings in a fixed deposit account as it ensures safety, security, and trust. One other reason besides safety and trust is the higher fixed deposit interest rate when compared to other investments.

Here are some top banks offering the best bank FD rates to senior citizens under fixed deposit accounts for the year 2022:

Name of the Bank 1 year rates 3 year rates 5 year rates
RBL Bank 6.60% 6.80% 7%
Axis Bank 5.75% 5.90% 6.50%
Bandhan Bank 6.25% 6% 5.75%
Bank of Baroda 5.40% 5.75% 5.75%
Canara Bank 5.70% 6% 6%
DCB Bank 6.30% 7% 7%
Federal Bank 5.60% 5.85% 6%
HDFC Bank 5.40% 5.80% 6.25%
ICICI Bank 5.40% 5.85% 6.30%
IDFC First Bank 6% 6.50% 6.25%
IndusInd Bank 6.50% 6.50% 6.50%
PNB 5.60% 5.75% 5.75%
State Bank of India (SBI) 5.50% 5.80% 6.20%
YES Bank 6.50% 7% 7.25%

*The FD interest rates mentioned in the above table are subject to change. The table does not represent any chronological order.

Fixed Deposit Interest Rates in India - Important Terms

  1. Timely Closure:

    It refers to the closure of your FD account at the time it matures. When you close your fixed deposit rates account on its maturity date, the bank pays you back the principal amount with the interest that you have accumulated during the term chosen.

  2. Partial Withdrawal:

    As the name of this term suggests, the partial withdrawal enables you to withdraw a certain amount from your fixed deposit amount. The reason for partial withdrawal can be some personal emergency or you may want to deposit some amount with another bank that is offering you a good fixed deposit interest rate on FD than your current interest rate. Generally, it is allowed in Rs.1000 units, and the penalty levied by the bank is 1%. However, the remaining amount in your fixed deposit account will be able to earn the original and the best bank FD rates in India.

  3. Breaking an FD Account:

    It is the opposite of the timely closure of your FD account. In timely closure, you withdraw the amount after completion of the maturity period, whereas in premature withdrawal or breaking the FD you withdraw your entire fixed deposited money before the maturity. Generally, banks do not allow premature withdrawal of fixed deposit accounts, however, it depends on the norms of the banks. Almost all the banks' levy penalties when you break the FD before its maturity and pay back the principal amount and the interest on fixed deposit at the lowest rate of interest. However, banks like Bank of Maharashtra and Yes Bank waive off the penalty, if you withdraw your FD with the bank because of some emergency.

How to Calculate FD Maturity Amount?

FD (Fixed Deposit) maturity amount and the FD interest can be easily calculated with the help of an online FD Calculator. The following formulas are used for the computation of the maturity amount of the Fixed Deposits:

  1. For Simple Interest FDs:

    M = P + (P x r x t / 100)

    Here,

    M = Maturity value

    P = Principal amount deposited

    r = Rate of Interest

    t = Tenure

    Illustration

    Mrs. Mona deposits a sum of Rs. 1,00,000 in her FD account for 5 years at the fixed deposit interest rate of interest of 10%. The maturity value through simple interest formula will be:

    M = Rs.1,00,000 + (1,00,000 x 10 x 5 / 100)

    Maturity value = Rs. 1,50,000

  2. For Compound Interest FDs:

    M = P + P {(1 + i / 100) t – 1}

    Here,

    M = Maturity value

    P = Principal amount deposited

    t = Tenure

    Illustration

    With same variables as above,

    M = Rs. 1,00,000 {(1 + 10 / 100) 5 – 1}

    Maturity value = Rs. 1,61,051

Capital Return Capital Return

How is FD Calculator Useful?

Manual calculation of FD amounts can be tricky, tedious, and complicated with chances of error and inaccuracy. The online FD Calculator can be very useful in the following ways:

  • Allows calculation of complex variables with few clicks.

  • Helps save time and energy for the investor.

  • Allows the investor to compare bank FD rates and maturity value of Fixed Deposits provided by various financial institutions easily.

  • More accuracy as compared to manual calculations.

How to use the FD Calculator?

The following information needs to be filled for FD Calculation in the FD Calculator:

  • Enter the deposit amount

  • Rate of Interest deposited

  • The tenure of FD

  • Click on the calculate button

By following these simple and easy steps, one can calculate the FD maturity value within a second.

Documents Required for opening a fixed deposit account

Here are the documents that are a must-have for opening a fixed deposit interest rate account.
Proof of Identity

  • Aadhaar card

  • PAN card

  • Driving license

  • Voter ID card

  • Government ID card

Address proof

  • Passport

  • Electricity bill

  • Telephone bill

  • Bank Statement with a canceled cheque

Bank Fixed Deposit Interest Rates - Special Features

  • The bank FD rates are higher than the regular savings account interest rates.

  • Any Indian resident including the minors and Hindu Undivided Family can open a fixed deposit account.

  • You can select two nominees in an application form. These two nominees are eligible for collecting the amount by providing valid death proof of the account holder.

  • Premature withdrawal is not allowed. Therefore, you cannot withdraw the amount that you have deposited in it before maturity. However, in case of an emergency, you can withdraw this amount by paying a penalty.

  • There is a sweep-in facility provided by the banks. With this facility, you can interlink your savings bank account with the fixed deposit rate account. The advantage of this facility is that you can auto-transfer your surplus money from a savings bank account to an FD account. It enables the depositors to earn the best bank FD rates on their savings account and provides an option to break the FD at any time and hence utilize the amount.

  • The banks also provide the facility to take a loan against FD for meeting any financial emergency. The deposited amount works as a security for the loan that you have taken. You can take a loan up to 75% - 90% of your FD amount depending upon your bank and the fixed deposit rates on it varies from 1% to 1.5% over the interest rate.

Taxation on Fixed Deposit Interest Rates

  1. How is Income Earned by Interest Taxed?

    As mentioned earlier, income earned by interest is fully taxable. It’s added to the total income and taxed as per the applicable tax slabs. It falls under the category ‘Income from Other Sources’ in the Income Tax Return.

  2. Why TDS?

    Banks deduct Tax Deducted at Source on income earned by interest as it is an accumulated amount. Some people tend to believe that banks deduct tax at the time a fixed deposit scheme matures and the interest earned is credited. However, the bank will deduct TDS at the end of every financial year.

  3. When to Pay Tax On Income Earned by Fixed Deposit Interest Rates?

    In case a fixed deposit account holder is supposed to pay the tax on their income earned by interest on fixed deposit, he/she must pay it before the end of a financial year i.e. 31st March. But now the deadline has been extended amid the ongoing pandemic.

    Note- If an account holder earns a large income from interest on fixed deposit, then he/she must pay tax every quarter.

Fixed Deposit Investment Tips

Mentioned below are some of the tips that one should consider before investing in a fixed deposit. These tips are:

  • Before investing in an FD, you must consider the factors like maturity, penalty, or breaking the fixed deposit before its maturity, fixed deposit rates, etc.

  • It is advised to do your research related to the latest trend of the FD interest rates. If you are thinking of re-investing when the bank FD rates in India go up, then it is suggested to opt for a shorter tenure and vice-versa.

  • Before taking the final decision of opening a fixed deposit account, you must go through the tenure-wise fixed deposit rates offered by the bank. Sometimes, the banks offer the highest interest rate for some specific tenures.

  • In addition to this, you must plan your expenses carefully and make sure that it is not affecting your budget.

Types of Fixed Deposit Interest Rates in India

FD interest rates are of two types as mentioned below:

  1. Flexi FD Interest Rates

    With a Flexi FD, the depositor can link its FD account with a savings account. The deposited money moves between the savings account and the FD account. This type of FD is also popular as Sweep in- Sweep out fixed deposit. It helps you earn the highest rate of interest.

  2. Regular FD Interest Rates

    Regular FDs are designed for a fixed tenure, which offers the highest interest rates, depending on the tenure and FD rates.

Factors Impacting FD Rates in India

The factors that impact fixed deposit interest rates in India are mentioned below:

  1. Present Scenario of the Nation’s Economy

    Gross domestic product i.e. the value of the total goods & services produced in India during a specific period reflects the present scenario of the nation's economy. In case it increases, it means India's economy is prospering and hence, the fixed deposit rates will also increase.

  2. Monetary Policy of Reserve Bank of India

    Banks in the country borrow money from the Reserve Bank of India. The bank FD rates at which the money is borrowed is known as the Repo Rate. If there is an increase in repo rate then the banks will enhance their fixed deposit rates (and loans).

  3. Effect of Recession and Inflation

    Inflation is the rate at which the cost of goods & services increases. To control inflation, the fixed deposit interest rates are hiked so that people are tempted to save more. When inflation decreases, the interest rate also decreases. As a result, they borrow money and spend more.

    The Reserve Bank of India makes the best use of FD rates to tackle inflation. Last year, RBI reduced the repo rate by 25 basis points from 5.15% to 5.75%.

Rules to Consider for Fixed Deposit Account 

Here are some fixed deposit account rules that are a must to know for every investor as well as a potential investor.

  • Tax Deducted at Source (TDS) - The interest earned on bank FD rates is taxable. It means, income earned as interest is added to your total income and will be taxed as per the applicable tax slabs. In case the income earned from interest for a financial year is greater than 40,000 rupees (Rs 50,000 in the case of senior citizens), banks levy TDS @10 percent on the earned interest. Note- In case the fixed deposit account holder hasn’t provided his/her PAN (permanent account number); the bank will deduct Tax Deducted at Source@ 20 percent.

  • Loan/Overdraft Facilities - Overdraft or loan facility against fixed deposits interest rates is available. For example, the State Bank of India offers the facility of loan/overdraft of up to 90 percent of the principal amount. 

  • Insurance of Fixed Deposit - It is also known as deposit insurance. It's a protection cover that the account holder gets on his/her deposit in the bank. This facility is provided by Deposit Insurance and Credit Guarantee Corporation.DICGC is a subsidiary of the Reserve Bank of India (RBI). The insurance premium is paid by the banks. If a bank is bankrupted, DICGC would provide a maximum sum of Rs. 1 lakh to every account holder for the principal as well as interest on fixed deposit amount.

  • Clubbing of Interest Income - Interest earned from FD or RD is clubbed across all bank branches for 2 main purposes.

    • For calculating the total interest on fixed deposit earned by an FD account holder during a specific financial year

    • For calculating the applicability of Tax Deducted at Source

  • Form 15G/15H - To prevent TDS, the account holder can submit either Form 15G or 15H to the bank. These are self-declaration forms that can be submitted by the account holder. The form states that the account holder's total income doesn't fall into the taxable income bracket.
    If an FD account holder fails to do so, he/she can claim a tax refund while filing his/her Income Tax Return.

  • Minor or Spouse - Many account holders tend to think that one can avoid tax deduction by investing their money in the name of their minor child or non-working spouse. This is a myth, which needs to be busted right now. If an account holder invests in the highest Fixed Deposit interest rate bank FD in the name of his/her non-working spouse or minor child, the earned interest income would be accredited to his/her income. It will be taxed as per his/her income tax slab.

  • Cumulative Deposits - In case an FD account holder has opted for a cumulative deposit to get the best fixed deposit rates in India at the end of the deposit term, tax experts recommend declaring the income earned by interest every year. It's because his/her bank might reduce the applicable TDS and deposit it as per his/her PAN. If an FD account holder doesn't declare his/her interest income, it will reflect a mismatch in his/her 26AS statement i.e. tax credit statement and the return filed by him/her.

How to Find the Best FD Interest Rates in India?

When it comes to finding the right type of fixed deposit, it is recommended to look for banks, instead of organizations that issue FD policies for the investors. Some banks offer decent interest rates in a short period, and others may provide better interest in the longer run. The bank fixed deposit rates tend to change regularly. You need to check the current bank FD rate on the websites of the respective banks.

FD Interest Rates FAQs

  • Is interest on fixed deposit is compounded?

    Ans: Generally, the interest on a fixed deposit is compounded and is credited along with the principal sum when the deposit matures. However, in case of the fixed deposit account, the holder opts to get the credit of interest on a monthly or quarterly basis, then a compound interest isn't offered.
  • What’s a re-investment plan in an FD account?

    Ans: A re-investment plan is a type of term deposit. Rather than the interest being credited at an opted regular frequency, the interest is credited at the end of the maturity period. At the time of maturity, the regular interest, as well as the principal sum, are paid out.
  • Can I get fixed deposits interest credited to my account every month?

    Ans: Yes. The periodicity of the interest paid for a fixed deposit depends on your preference.
  • How can I compute FD interest rates in India?

    Ans: It is very simple. You can use a fixed deposit interest calculator, fill in the asked details and that's it. The tool is available online. All you have to do is type a fixed deposit interest calculator and conduct a Google search.
  • Is the rate of interest on FD for senior citizens is higher as compared to regular FD?

    Ans: Majorly, banks offer the highest interest rates for senior citizens. It ranges from 4.50 percent - 8 percent.
  • What’s the minimum and maximum term for which I can open a fixed deposit account?

    Ans: Typically, the minimum duration is 7 days, and the maximum duration is 10 years for which one can open a fixed deposit account.
  • Do I have to pay tax on my FD income?

    Ans: Typically, banks deduct TDS on the interest in case the interest-earned income through the fixed deposit is more than 10,000 Rupees per annum. The TDS is deducted at the rate of 10 percent on the income earned by interest if your account is linked with your PAN number. If your account isn't linked with your PAN, the bank, then deducts TDS at the rate of 20 percent on the income earned by interest.
  • Who can invest in FDs?

    Ans: In case you are a resident of India, you can invest in these schemes, regardless of your age. Apart from that, Hindu Unified Family (HUFs), private or public Ltd. co. and partnership firms are eligible to invest in a fixed deposit account.
  • Does investment made into term deposits provide any benefits?

    Ans: Yes. It offers multiple benefits such as high tax highest interest rates on FD, tax-saving benefits, etc.
  • Can I redeem my fixed deposits before the original term?

    Ans: Yes. A fixed deposit can be closed before its maturity term. In case you close your Fixed Deposit before its maturity, the interest will be credited at the rate as applicable on the deposit date for the duration the amount was deposited in the bank.
    When a fixed deposit is withdrawn before maturity, it is called a premature withdrawal. A few banks charge a penalty for premature withdrawal.
  • When can I renew my FD?

    Ans: You can renew a deposit at the end of its maturity period for the same deposit term.
  • Are there any loans offered against fixed deposits?

    Ans: Yes. If you want to withdraw your deposit prematurely, you can consider taking a loan against your FD. This way, you won’t have to pay any penalty, and you will get ample funds to manage your finances. Additionally, you will earn interest on the fixed deposit. You can take a loan of up to 70 percent - 90 percent of your principal amount. Generally, the interest on the loan is charged 2 percent to 2.5 percent higher than the interest rate offered by your Fixed Deposit. Still, the rate of interest is lesser than that of a personal loan.
  • Can I go for an auto-renewal option at the time of opening a fixed deposit account?

    Ans: Yes. You can select an auto-renewal facility at the time of opening a fixed deposit account. Additionally, you can get in touch with your bank and opt for auto-renewability any time before maturity. The auto-renewal facility enables your fixed deposit to get renewed by default for the same fixed deposit term.
  • Why does the rate of fixed deposit keep on changing?

    Ans: Various factors influence banks to change the interest rate of fixed deposits. A few factors are mentioned below.
    • Deposit rates share a relationship with the inflation Rate - Ideally; banks should offer positive returns to the depositors. Investors should keep a tab on the inflation rate as it affects the lending rates. There can be times when depositors might get negative returns due to high inflation.
    • Present Liquidity of the Country - When there is sufficient liquidity, banks don't focus on FDs to fulfill their financial goals, unlike the times when there is tight liquidity. During such times, banks turn the fixed deposits. As a result, bank FD rates in India can change.
    • Demand and supply scenario - When the demand for credit is less, usually, bank interest rates are decreased and vice-versa. Typically, banks cut interest on fixed deposits when a cut is anticipated on the lending rate.

FD News

PNB Updates FD Interest Rates: 0.80% Increase for Senior Citizens!

06 October 2022

Punjab National Bank has introduced the updated Fixed Deposit Interest Rates effective from 13th September 2022. The PNB FD rates offer an 80 BPS increase under certain tenures for senior citizens and all tenures for super senior citizens.

Super Senior Citizens above 80 years of age are allowed 0.80% above the regular FD rates offered to General Citizens. The tenure of bank FDs ranges from 7 days to 10 years in general. PNB is offering the highest Fixed Deposit rates for super senior citizens compared to other banks across all the tenures.

Read more

ICICI Bank and Federal Bank Increase Their FD Rates: Check Out the New Interest Rates!

29 September 2022

Effective from 26th September 2022, ICICI Bank has updated its FD Interest Rates, whereas, in the case of Federal Bank, the updated FD rates are effective from 27th September 2022.

Before the Reserve Bank of India’s (RBI) monetary policy review this week, top private banks, like ICICI and Federal, have increased their Fixed Deposit Interest Rates for deposits less than Rs. 2 crores. ICICI Bank’s revised rates for the tenure of 185 days to 1 year is 5.50% from 4.65%. Whereas in the case of Federal Bank, revised rates for the tenure of 333 days have increased to 5.60%.

Read more

Increased FD Rates for Certain Tenures: Check Out ICICI Bank’s Revised Rates!

26 September 2022

With effect from 26th September 2022, ICICI Banks FD Interest rates are increased up to 25 basis points for certain tenures below the amount of Rs. 2 crores. The revised interest rates range between 2.75% to 6.10% for the tenure of 7 days to 10 years for general citizens.

For the tenure of 91 days to 120 days, 121 days to 150 days, and 151 days to 184 days, the interest rates have gone up from 3.75% to 4%. Penalties are levied on premature withdrawals as per the bank’s terms.

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Increased Interest Rates for Kotak Mahindra Fixed Deposits: Check out the Revised Rates!

22 September 2022

Kotak Mahindra, one of the leading private sector banks, has recently updated its interest rate on fixed deposits. Effective from 19th September 2022, the rates have increased by 10 points for deposits below Rs. 2 crores for the tenure ranging from 2 years to 10 years.

For the tenure of 2 years and above, Kotak Mahindra Bank FD Rates are increased from 6% to 6.10%. The interest will be paid as per the terms and conditions of the bank, and penalty charges will be applicable for premature closures of the FD.

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Increased FD Rates for Senior Citizens: Check out the SBI Wecare Fixed Deposit Scheme!

21 September 2022

Generally, most banks offer 0.5% additional interest rates to senior citizens aged 60 years and above. But, when it comes to SBI’s Wecare Fixed Deposit Scheme, the interest rate offered to senior citizens is up to 0.80%.

The scheme was previously supposed to discontinue from 30th September 2022 but has now been extended until March 2023. The increased FD rates for senior citizens are beneficial, attracting more and more depositors. SBI Wecare’s increased FD rates is payable on TD for the tenure of 5 years and above.

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Interest up to 7.50% on 3 to 5 years FD tenure: Check Out These Banks!

20 September 2022

One of the safest investment tools, FDs are a popular choice for investors when investing their hard-earned money. Besides offering high-interest rates to general and senior citizens of India,

FD does not come up with any market-related risks, and offers different interest payment options along with tax-saving benefits.
The top 5 banks to have increased their FD interest rates for a tenure of 3 years to 5 years are Fincare Small Finance Bank at 7.50%, Jana Small Finance Bank FD rates at 7.35%, Ujjivan Small Finance Bank at the interest rate of 7.20%, whereas Bandhan Bank and Deutsche Bank at 7% each.

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Higher Interest Rates for a Limited Time: SBI Launches a Special FD Scheme

19 September 2022

On the special occasion of the 76th Independence Day of India, the State Bank of India came up with a special "Utsav Deposit" scheme for a limited time period up till 28th October 2022.

The Utsav Deposit scheme's tenure is 1000 days, with interest rates as high as 6.10% for general citizens and 6.60% for senior citizens. The interest payment can be made monthly, quarterly, and half-yearly, per the requirement of the depositor. Premature withdrawals are also available as applicable for retail term deposits, and TDS is applicable as per the prevailing tax laws.

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Interest Rates Ranging 7.50% to 8.25% on 2-year FDs: A bonus for Senior Citizens!

13 September 2022

Fixed Deposits are hugely popular amongst the masses because they are safe, government-backed, and offer guaranteed returns to their customers for decades. FDs for senior citizens are considered one of the best options for future security. The payouts are made monthly, quarterly, semi-annually, and annually based on the requirement.

Some banks have increased their interest rates ranging from 7.50% to 8.25% for a tenure of 2 years, attracting more customers. The banks offering high-interest rates include Utkarsh Small Finance Bank, Jana Small Finance Bank, Bandhan Bank, IndusInd Bank, and Yes Bank.

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Interest Rates Up to 7.5% for Senior Citizens: Check Out These Top Banks!

12 September 2022

After the hike in repo rates by the Reserve Bank of India recently by 140 points, many banks, and financial institutions have raised their interest rates. This rise in interest rate has brought a sigh of relief for the depositors, especially the senior citizens and retirees dependent on FD income.

The banks that have increased their interest rates include IndusInd Bank, Kotak Mahindra Bank, DCB Bank, etc., for deposits less than Rs. 2 Crores. The premiums offered are, at times, even higher based on the maturity period and the deposited amount, making it highly beneficial for the depositors.

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Revised FD Interest Rates for Equitas Small Finance Bank: Get Up to 7.25%!

09 September 2022

A new interest rate revision has been made on FDs below Rs. 2 crores for the Equitas Small Finance Bank, effective from 8th September 2022. The new rates range from 3.50% to 7.25% for a tenure of 7 days to 10 years, respectively.

Some of the basic features of Equitas Small Finance Bank FD rates include a 7.45% interest rate for senior citizens for a tenure of 10 years, full or partial withdrawal before the maturity date, nomination facility, zero penalties in case of withdrawal after 6 months of the FD tenure, and much more.

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New FD Rules Introduced by RBI: Less Interest If Left Unclaimed!

08 September 2022

The Reserve Bank of India has introduced a new amendment for the interest rates on overdue FDs. After the recent modification of the interest rates in both private and government sector banks and financial institutions, the interest rates have been reduced on overdue or unclaimed FDs.

As per the new rules, if an FD has matured and the proceeds are still unpaid, the amount that has not been claimed will receive a lesser interest than a regular FD. If an investor does not withdraw or claim the FD, the interest rate will be less after the maturity of the FD.

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SBI Multi Option Deposit Scheme: Withdraw Anytime Without Paying Penalty!

07 September 2022

In general, investors who withdraw their FD before the maturity date are bound to pay the penalty. State Bank of India has come up with SBI's Multi Option Deposit Scheme, wherein investors can withdraw whenever they wish to without any penalties levied.

SBI Multi Option Deposit Scheme is a term deposit open by Resident Individuals, Hindu Undivided Families, Local Bodies, Government Departments, and Companies. The interest rates of this scheme are similar to SBI's regular fixed deposit rates. The scheme can be easily linked to an investor's current or savings account.

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Rise in FD Interest Rates for NRIs: Yes Bank

05 September 2022

Due to the monetary policy tightening, the RBI has temporarily allowed banks to raise their interest rates on deposits and loans. Yes Bank FD Rates has recently increased for NREs (Non-Resident Externals) and NRIs (Non-Resident Indians) by 50 to 75 basis points.

FCNR (B) and NRE deposit rates were increased from 7th July 2022 for a period up to 31st October 2022. Currently, as per the Yes bank website, the NRE Fixed Deposit Interest Rate from 1 year to 18 months is 7.01%, whereas, above 18 months to less than 10 years is 7.25% (for deposits below Rs. 2 Crores). It should be noted that these rates are subject to change.

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