Check Out the Latest FD Interest Rates Offered by Top Banks

Saving money is important to prepare for a rainy day. With regular savings, a person can look after himself and his family if he comes across a difficult phase in life that impacts his income. Every parent tries to inculcate the habit of saving in his child. One of the most popular methods of saving money, which is suggested by most parents, is by opening a Fixed Deposit. Most of them open a fixed deposit in their child’s name to save for major expenses in the future such as higher education, child’s marriage, etc. Moreover, you often come across news regarding a change in the latest fd rates. Let us take a look at what exactly a fixed deposit is all about.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

What is a Fixed Deposit?

Fixed Deposit is a conventional money-saving scheme that helps to grow money over a period of time. Under this scheme, a person can invest a lump sum amount into a fixed deposit and earn interest on it through a fixed rate of interest. Unlike mutual funds and equity investments, a fixed deposit is not dependent on market performance and thus, is a safer method of funds investment.

A fixed deposit can be opened for a minimum period of 7 days and for a maximum of 10 years. Upon maturity, the depositor has the option to withdraw the amount or reinvest the entire/ a part of the FD amount by opening a fresh fixed depositor.

There are two types of fixed deposits offered in India –

  • Fixed deposit with premature withdrawal
  • Fixed deposit without premature withdrawal

Under the first category, the depositor has the freedom to withdraw his fixed deposit even before its maturity. He/ she can do so by paying withdrawal charges levied by the bank. For instance, the State Bank of India levies withdrawal charges of 0.5% to 1% depending on the FD amount. However, the FD withdrawal charges may vary from one bank to another.

On the other hand, if a person has opted for a fixed deposit without premature withdrawal, he/ she will not be able to withdraw the FD before its maturity.

Finalizing the bank or financial institution in which you want to open your fixed deposit is a big decision. This is because the performance of the bank and its latest FD rates impacts the growth of your fixed deposit amount.

In order to choose the best bank for opening a fixed deposit, make sure that you are aware of the following things:

  • Procedure for opening an FD account: Some banks allow you to open a fixed deposit only if you have a savings account with the bank. Such deposits are called term deposits. On the contrary, some banks will allow you to open an FD without opening a savings account. In this scenario, you will have to undergo a KYC or Know Your Customer process before opening the fixed deposit
  • Minimum Fixed Deposit Amount: It is important to know the minimum amount required to open a fixed deposit under different banks. This is because different banks have different minimum FD amount. However, there is no maximum amount for opening a fixed deposit
  • Tenure of Fixed Deposit: You should also check the minimum and the maximum tenure of a fixed deposit. Most banks allow people to open an FD for a minimum duration of 7 days. Similarly, almost all banks in India will allow you to open a fixed deposit for a maximum duration of 10 years.

Latest FD Rates by Top Banks

Before you finalize that in which bank you want to open your fixed deposit, you should check the latest FD rates offered by top banks. The interest rates for fixed deposits are different for the general public and senior citizens. Let’s take a look at the latest interest rates for fixed deposits at top banks in India for both general public and senior citizens:

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Latest FD Rates for General Public:

The below table shows the latest fixed deposit interest rates offered to the general public. The following interest rates are available for a deposit of less than Rs 2 crore. The FD rates are applicable for a tenure ranging from 7 days to 10 years.

Name of the Bank Latest FD Rates (per annum)
Axis Bank FD Rates 3.50% to 7.20%
Bank of Baroda FD Rates 4.50% to 6.50%
Bank of India FD Rates 5.00% to 6.25%
Canara bank FD Rates 5.00% to 6.50%
Central Bank of India FD Rates 4.50% to 6.60%
HDFC Bank FD Rates 3.50% to 7.30%
ICICI Bank FD Rates 4.00% to 7.10%
IDFC Bank FD Rates 4.00% to 8.50%
Kotak Mahindra Bank FD Rates 3.50% to 6.90%
Punjab National Bank FD Rates 5.00% to 6.75%
State Bank of India FD Rates 5.00% to 6.80%
Yes Bank FD Rates 5.00% to 7.25%

As per the latest FD rates of top banks, IDFC Bank offers the highest interest rates on fixed deposits for the general public.

Latest FD Rates for Senior Citizens:

The following table shows the latest interest rates for fixed deposits offered to senior citizens. These interest rates are available for a deposit of less than Rs 2 crore. The FD rates are applicable for a tenure ranging from 7 days to 10 years.

Name of the Bank Latest FD Rates (per annum)
Axis Bank 3.50% to 7.85%
Bank of Baroda 5.00% to 7.10%
Bank of India 5.50% to 7.00%
Canara bank 5.50% to 7.00%
Central Bank of India 4.50% to 6.60%
HDFC Bank 4.00% to 7.80%
ICICI Bank 4.50% to 7.60%
IDFC Bank 4.50% to 9.00%
Kotak Mahindra Bank 4.00% to 7.40%
Punjab National Bank 5.50% to 7.25%
State Bank of India 5.50% to 7.30%
Yes Bank 5.505 to 7.75%

As per the latest FD rates of top banks, IDFC Bank offers the highest interest rates on fixed deposits for senior citizens.

Fixed deposit is one of the safest and most reliable investments methods today. You can earn a handsome interest amount if you check the latest FD rates and open a fixed deposit in one of the top banks.

Written By: PolicyBazaar - Updated: 24 August 2020
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