FD Interest Rates 2023

What are FD Interest Rates?

The rate of interest on FD 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.

Top Banks' Latest Fixed Deposit Interest Rates 2023

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

Here is a list of the latest best FD rates in India offered by the top banks for a deposit amount of less than 2 crore rupees:

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

Cumulative and Non-Cumulative FD

Cumulative FD: This FD, 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.

Non-Cumulative Deposits: In this fixed deposit scheme, the interest earned is payable regularly as per the FD. Therefore, it is payable either monthly, quarterly, semi-annually, or annually.

Check Out NBFCs FD Interest Rates

Non-Banking Financial Companies, popularly known as NBFCs, offer interest rates in competition with 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 top NBFCs' best interest rates per annum for the year 2023:

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

1. Top Banks 1 Year FD Interest Rates In India

   Rates effective as of 09 March 2023:

   Name of Bank	General Citizens (per annum)	Senior Citizens (per annum)
   Bank of India	6.00%	6.25%
   Canara Bank	6.75%	7.25%
   IDBI Bank	6.75%	7.25%
   IDFC First Bank	6.75%	7.25%
   Punjab and Sind Bank	6.25%	6.75%
   Punjab National Bank	6.75%	7.25%
   State Bank of India	6.75%	7.25%

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

2. Top Banks 2-Year FD Interest Rates in India

   Rates effective as of 09 March 2023:

   Name of Bank	General Citizens (per annum)	Senior Citizens (per annum)
   Canara Bank	6.80%	7.30%
   IDBI Bank	6.75%	7.50%
   IDFC First Bank	7.50%	8.00%
   Union Bank of India	6.30%	6.80%

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

3. Top Banks 3-Year FD Interest Rates in India

   Rates effective as of 09 March 2023:

   Name of Bank	General Citizens (per annum)	Senior Citizens (per annum)
   Axis Bank	7.00%	7.75%
   IDBI Bank	6.25%	7.00%
   IDFC First Bank	7.50%	8.00%
   Punjab and Sind Bank	6.25%	6.75%
   State Bank of India	6.25%	6.75%

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

4. Top Banks 5-Year FD Interest Rates in India

   Rates effective as of 09 March 2023:

   Name of Bank	General Citizens (per annum)	Senior Citizens (per annum)
   Axis Bank	7.00%	7.75%
   Canara Bank	6.50%	7.00%
   IDBI Bank	6.25%	7.00%
   IDFC First Bank	7.00%	7.50%
   State Bank of India	6.25%	7.25%
   Union Bank of India	6.70%	7.20%

   *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 (TDS) on income earned as interest on Fixed Deposit (FD) as it is an accumulated amount. Therefore, tax-saving Fixed Deposits are a little different from regular Fixed Deposits.

Under tax saver FDs, a tax amount up to Rs. 1,50,000 is exempted under Section 80C of the Income Tax Act, 1961.

FD Rates for Senior Citizens: Even under tax-saver FDs, senior citizens have an additional 0.50% interest rate compared to others. 

Union Budget 2023 Updates:

The tax exemption under Section 80C is available now only if the old tax regime is chosen. As per the announcements made in Union Budget 2023, no tax exemptions are allowed if the new tax regime is chosen.

Here is a list of banks that offer the best tax saver FD Interest rates as of 09 March 2023:

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

Fixed Deposit for Senior Citizens

Fixed deposits, also known as 'term deposits' or 'time deposits, ' come with special FD interest rates for senior citizens. All leading banks provide a fixed deposit facility to senior citizens that come with an array of benefits. 

Another advantage for senior citizens is that they get a 0.50% more fixed deposit rate of interest than 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. Another reason besides safety and trust is the higher FD rates in India compared to other investments.

Here are some top banks offering the best FD rates in India to senior citizens under fixed deposit accounts for the year 2023:

*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, partial withdrawal enables you to withdraw a certain amount from your fixed deposit amount. The reason for partial withdrawal can be some personal emergency. You may also want to deposit some amount with another bank offering you a better fixed deposit interest rate 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 banks levy penalties when you break the FD before its maturity and pay back the principal amount and the interest on Fixed Deposits at the lowest rate of interest. 

   However, banks like the 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 2023. 

The following formulas are used for the computation of the maturity amount of the Fixed Deposits at fixed FD interest rates:

1. Calculation of Maturity Amount for Simple Interest FDs

   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	Example: P (Principal sum deposited in FD) = of Rs. 1,00,000  Tenure, t= 5 years  Rate of interest, r = 10% The maturity Amount, M = Rs.1,00,000 + (1,00,000 x 10 x 5 / 100) Maturity value = Rs. 1,50,000

2. Calculation of Maturity Amount for Compound Interest FDs

   For Compound Interest FDs:
   M = P + P {(1 + i / 100) t – 1} Here, M = Maturity value P = Principal amount deposited t = Tenure	Example: If P= Rs. 1,00,000 t= 5 years r= 10% M = Rs. 1,00,000 {(1 + 10 / 100) 5 – 1} Maturity value = Rs. 1,61,051

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 2023 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 easily compare bank FD rates and maturity value of Fixed Deposits provided by various financial institutions.

• More accuracy as compared to manual calculations.

How to use the FD Calculator?

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

Step 1: Enter the deposit amount.

Step 2: Fill in the Rate of Interest at which the amount is deposited.

Step 3: Select the tenure of FD.

Step 4: 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.

1. Proof of Identity

   • Aadhaar card

   • PAN card

   • Driving license

   • Voter ID card

   • Government ID card

2. Address proof

   • Passport

   • Electricity bill

   • Telephone bill

   • Bank Statement with a cancelled cheque

Bank Fixed Deposit Interest Rates - Special Features

The highlighting features of the best Fixed Deposit rates are listed below:

1. High FD Interest Rates: 

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

2. Any Indian Resident Can Open an FD Account: 

   Any Indian resident, including minors and Hindu Undivided Families (HUF), can open a fixed deposit account.

3. Select Maximum Two Nominees: 

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

4. Partial Withdrawal of Amount: 

   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 the penalty.

5. Sweep-in Facility for FD Account:

   The banks provide a sweep-in facility. 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 FD rates in India on their savings account and provides an option to break the FD at any time and hence utilize the amount.

6. Loan Against FD 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 vary from 1% to 1.5% over the interest rate.

Taxation on Fixed Deposit Interest Rates

Let us answer the major queries on tax applicable to income earned from Fixed Deposits Interest Rates:

1. How Tax is Calculated on Income Earned from FD Interest Rates?

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

2. Why TDS is Deducted on Interest Earned for FD?

   Banks deduct Tax Deducted at Source (TDS) on income earned by interest, as it is an accumulated amount. 

   Some people believe that banks deduct tax when 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 a Fixed Deposit, they must pay it before the end of a financial year, i.e., 31 March. But now, the deadline has been extended amid the ongoing pandemic.

   Note- If an account holder earns a large income from interest on a Fixed Deposit, and then they 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 as follows:

• Before investing in an FD, you must consider the factors like maturity, penalty, 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 making the final decision to open 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, you must plan your expenses carefully and ensure that it is not affecting your budget.

Bank FD Interest Rates

Bank FD Calculator

NRI-NRE FD Rates

Allahabad Bank FD Interest Rates

Andhra Bank FD Interest Rates

Assam Gramin Vikash Bank FD Interest Rates

AU Small Finance Bank FD Interest Rates

Axis Bank FD Interest Rates

Bajaj Finance FD Interest Rates

Bandhan Bank FD Interest Rates

Bangiya Gramin Vikash Bank FD Interest Rates

Bank of Baroda FD Interest Rates

Bank of Ceylon FD Interest Rates

Bank of India FD Interest Rates

Bank of Maharashtra FD Interest Rates

Baroda Gujarat Gramin Bank FD Interest Rates

Canara Bank FD Interest Rates

Capital Small Finance Bank FD Interest Rates

Central Bank of India FD Interest Rates

Citibank FD Interest Rates

City Union Bank FD Interest Rates

Corporation Bank FD Interest Rates

Dakshin Bihar Gramin Bank FD Interest Rates

DBS Bank FD Interest Rates

Dena Bank FD Interest Rates

Dhanlaxmi Bank FD Interest Rates

Equitas Small Finance Bank FD Interest Rates

ESAF Small Finance Bank FD Interest Rates

HDFC Bank FD Interest Rates

HSBC FD Interest Rates

ICICI Bank FD Interest Rates

IDBI Bank FD Interest Rates

IDFC First Bank FD Interest Rates

Indian Bank FD Interest Rates

Indian Overseas Bank FD Interest Rates

IndusInd Bank FD Interest Rates

Jana Small Finance Bank FD Interest Rates

Karnataka Bank FD Interest Rates

Kerala Gramin Bank FD Interest Rates

Kotak Mahindra Bank FD Interest Rates

Lakshmi Vilas Bank FD Interest Rates

Muthoot Capital

Nainital Bank FD Interest Rates

Odisha Gramya Bank FD Interest Rates

Paschim Banga Gramin Bank FD Interest Rates

Paytm Payments Bank FD Interest Rates

PNB FD Interest Rates

Prathama UP Gramin Bank FD Interest Rates

RBL Bank FD Interest Rates

Saurashtra Gramin Bank FD Interest Rates

SBI FD Interest Rates

Shriram Finance FD Interest Rates

State Bank of Hyderabad FD Interest Rates

State Bank of Mysore FD Interest Rates

State Bank of Travancore FD Interest Rates

Syndicate Bank FD Interest Rates

Tamil Nadu Grama Bank FD Interest Rates

Telangana Grameena Bank FD Interest Rates

Tripura Gramin Bank FD Interest Rates

UCO Bank FD Interest Rates

Ujjivan Small Finance Bank FD Interest Rates

Union Bank of India FD Interest Rates

Uttar Bihar Gramin Bank FD Interest Rates

Uttarakhand Gramin Bank FD Interest Rates

Vijaya Bank FD Interest Rates

Yes Bank FD Interest Rates

Expand

Allahabad Bank FD Calculator

Andhra Bank FD Calculator

AU Bank FD Calculator

Axis Bank FD Calculator

Bajaj Finance FD Calculator

Bandhan Bank FD Calculator

Bank of Baroda FD Calculator

Bank of India FD Calculator

Bank of Maharashtra FD Calculator

Canara Bank FD Calculator

Central Bank FD Calculator

Corporation Bank FD Calculator

Equitas Small Finance Bank FD Calculator

HDFC Bank FD Calculator

ICICI Bank FD Calculator

IDBI Bank FD Calculator

IDFC Bank FD Calculator

Indian Bank FD Calculator

Indian Overseas Bank FD Calculator

IndusInd Bank FD Calculator

Karnataka Bank FD Calculator

Karur Vysya Bank FD Calculator

Kotak Bank FD Calculator

Mahindra Finance FD Calculator

OBC Bank FD Calculator

Odisha Gramya Bank FD Calculator

PNB Bank FD Calculator

SBI FD Calculator

Shriram Finance FD Calculator

Syndicate Bank FD Calculator

Tripura Gramin Bank FD Calculator

UCO Bank FD Calculator

Union Bank FD Calculator

Yes Bank FD Calculator

Expand

HDFC NRE FD Rates

Maybank Malaysia FD Rates

SBI NRI FD Rates

Axis NRI FD Rates

Maybank Singapore FD Rates

Yes Bank NRI FD Rates

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 their 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 India's 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 (GDP), 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 (RBI). The bank FD rate at which the money is borrowed is known as the Repo Rate. If there is an increase in the repo rate, 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 people are tempted to save more. Conversely, when inflation decreases, the FD 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 in India to tackle inflation. Last year, RBI reduced the repo rate by 25 basis points from 6.25% to 6.50%.

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.

1. Tax Deducted at Source (TDS) 

   The interest earned on bank FD rates in India 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 Rs. 40,000 (Rs 50,000 in the case of senior citizens), banks levy TDS @10% on the earned interest. 

   Note- In case the fixed deposit account holder has not provided their PAN (permanent account number), the bank will deduct Tax Deducted at Source@ 20%.

2. 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% of the principal amount. 

3. Insurance of Fixed Deposit

   It is also known as deposit insurance. It's a protection cover that the account holder gets on their deposit in the bank. This facility is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a subsidiary of the Reserve Bank of India (RBI). 

   The banks pay the insurance premium. If a bank is bankrupted, DICGC will provide a maximum sum of Rs.5 lakh (before September 2021, DICGC would cover up to Rs. 1 lakh) to every account holder for the principal as well as interest on fixed deposit amount.

4. 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 Deposits earned by an FD account holder during a specific financial year

   • For calculating the applicability of Tax Deducted at Source

5. 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 the account holder can submit. 

   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, they can claim a tax refund while filing their Income Tax Return.

6. Minor or Spouse

   Many account holders tend to think that they can avoid tax deductions by investing their money in the name of their minor child or non-working spouse. This is a myth that needs to be busted right now. 

   If an account holder invests in the highest Fixed Deposit interest rate bank FD in the name of their non-working spouse or minor child, the earned interest income would be accredited to their income. It will be taxed as per their income tax slab.

7. 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 their bank might reduce the applicable TDS and deposit it as per their PAN. 

   If an FD account holder doesn't declare their interest income, it will reflect a mismatch in their 26AS statement, i.e., tax credit statement and their return.

How to Find the Best FD Interest Rates in India in 2023?

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 investors. 

Some banks offer decent interest rates in a short period, while others may provide better interest in the long run. The bank fixed deposit rates tend to change regularly. 

You need to check the current bank FD rate on the respective banks' websites.

Wrapping It Up!

The top banks offer the best FD interest rates in India with attractive features of guaranteed returns, nomination facility, single as well as joint accounts, interest rates at competitive prices, loan facility on FD amount, and many more. One must make a comparative analysis of all the FD savings plans as per their future or emergency needs.

FAQ's

FD News