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Fixed Deposit issuers in India
Fixed deposits are considered a preferred investment choice for many in India. They offer the perfect combination of safety, stability, and attractive returns, making them a cornerstone of many investor portfolios. Read on to learn more about FD interest rates in 2024, including the rates offered by top banks, tax-saving options, and more.
What is a Fixed Deposit?
A Fixed Deposit is a financial instrument allowing individuals to deposit a lump sum amount with a bank or financial institution for a specified period at a predetermined interest rate. Fixed deposits are primarily known for their safety, as they are risk-free and not subject to market fluctuations. They offer guaranteed returns, making them an attractive option for conservative investors.
FD Interest Rates in 2024
As of November 2024, the fixed deposit interest rates for the general public in India range from 3.00% p.a. to 9.50% p.a. for tenures spanning 7 days up to 10 years. Senior citizens are offered even more attractive rates, with an additional of up to 0.50% on top of the rates available to the general public.
Here's a snapshot of the latest FD interest rates offered by top banks:
Bank FD Names | General Citizen Interest Rates (p.a.) | Senior Citizen Interest Rates (p.a) |
Axis Bank FD | 3.00% to 7.10% | 3.50% to 7.75% |
Bandhan Bank FD | 3.00% to 7.85% | 3.75% to 8.35% |
Bank of Baroda FD | 3.00% to 7.05% | 3.50% to 7.55% |
Canara Bank FD | 4.00% to 7.25% | 4.00% to 7.75% |
Central Bank of India FD | 3.50% to 6.75% | 4.00% to 7.25% |
HDFC Bank FD | 3.00% to 7.20% | 3.50% to 7.70% |
Bank FD Names | General Citizen Interest Rates (p.a.) | Senior Citizen Interest Rates (p.a) |
Axis Bank FD | 3.00% to 7.10% | 3.50% to 7.75% |
Bandhan Bank FD | 3.00% to 7.85% | 3.75% to 8.35% |
Bank of Baroda FD | 3.00% to 7.05% | 3.50% to 7.55% |
Canara Bank FD | 4.00% to 7.25% | 4.00% to 7.75% |
Central Bank of India FD | 3.50% to 6.75% | 4.00% to 7.25% |
HDFC Bank FD | 3.00% to 7.20% | 3.50% to 7.70% |
ICICI Bank FD | 3.00% to 7.10% | 3.50% to 7.60% |
IDBI Bank FD | 3.00% to 6.80% | 3.50% to 7.30% |
IDFC First Bank FD | 3.50% to 7.50% | 4.00% to 8.00% |
Indian Bank FD | 2.80% to 7.25% | 3.30% to 7.75% |
Indian Overseas Bank FD | 4.00% to 7.25% | 4.50% to 7.75% |
IndusInd Bank FD | 3.50% to 7.50% | 4.25% to 8.25% |
Kotak Mahindra Bank FD | 2.75% to 7.25% | 3.25% to 7.75% |
KVB Bank FD | 4.00% to 7.20% | 5.90% to 7.70% |
Punjab National Bank FD | 3.50% to 7.25% | 4.00% to 7.75% |
RBL Bank FD | 3.50% to 7.80% | 4.00% to 8.30% |
State Bank of India FD | 3.00% to 7.10% | 3.50% to 7.60% |
UCO Bank FD | 2.90% to 7.05% | Contact the Bank |
Yes Bank FD | 3.25% to 7.75% | 3.75% to 8.25% |
Please note that these rates are subject to change and may vary depending on the bank's policies, so it is essential to check the latest rates before making any investment decisions.
Key features of fixed deposits
1.Interest Rates: Fixed deposit interest rates vary across banks and tenures. The interest rate is usually higher for longer tenures and can be influenced by factors such as the deposit amount and the type of depositor (regular or senior citizen).
2.Types of Fixed Deposits: There are several types of fixed deposits to cater to different needs, including regular fixed deposits, tax-saving fixed deposits, senior citizen fixed deposits, NRI fixed deposits, cumulative/non-cumulative fixed deposits, and flexi fixed deposits.
3.Safety: Fixed deposits are considered a safe investment option as they are not linked to the stock market. Additionally, deposits up to Rs.1 lakh are insured by the Reserve Bank of India (RBI) through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
4.Loan Against FD: You can avail loans against your fixed deposits, typically up to 90% of the deposit amount, at attractive interest rates, providing you with liquidity when needed.
5.Flexible Tenures: Fixed deposits offer flexible tenures, ranging from 7 days to 10 years, allowing you to choose the duration that suits your financial goals.
6.Additional Rates for Senior Citizens: Senior citizens often enjoy higher interest rates on fixed deposits, typically up to 0.50%, making it an attractive option for retirees looking for stable income.
Tax-Saving Fixed Deposits
Tax-saving fixed deposits offer an attractive combination of fixed returns and tax benefits. As per the norms, depositors can claim a deduction of up to Rs. 1.5 Lakhs under Section 80C of the Income Tax Act by investing in these fixed deposits. However, they come with a lock-in period of five years, meaning you cannot withdraw the funds before this period expires.
Here are some of the top tax-saving FD interest rates as of November 2024:
Name of the Tax Saving FD | General Citizen Interest Rates (p.a.) | Senior Citizen Interest Rates (p.a.) |
Axis Bank Tax Saving FD | 7.00% | 7.75% |
Bank of Baroda Tax Saving FD | 6.50% | 7.15% |
Canara Bank Tax Saving FD | 6.70% | 7.20% |
HDFC Bank Tax Saving FD | 7.00% | 7.75% |
IDBI Bank Tax Saving FD | 6.50% | 7.00% |
IDFC First Bank Tax Saving FD | 7.00% | 7.50% |
IndusInd Bank Tax Saver Scheme | 7.25% | 8.00% |
PNB Tax Saving FD | 6.50% | 7.30% |
Punjab and Sind Bank Tax Saving FD | 6.25% | 6.75% |
RBL Bank Tax Saving FD | 7.10% | 7.60% |
SBI Bank Tax Saving FD | 6.50% | 7.00% |
Union Bank of India Tax Saving FD | 6.70% | 7.20% |
Tax-saving fixed deposits are an excellent choice for individuals looking to save on taxes while earning a fixed return on their investment.
FD Rates of Small Finance Banks
Small Finance Banks have gained popularity for offering competitive interest rates on fixed deposits. Below are the FD rates for deposits for various tenures, effective from November 2024:
Name of the SF Bank FD | General Citizen Interest Rates (p.a.) | Senior Citizen Interest Rates (p.a.) |
AU Small Finance Bank FD | 3.75% to 7.75% | 4.25% to 8.25% |
Capital Small Finance Bank FD | 3.50% to 7.50% | 4.15% to 8.00% |
Equitas Small Finance Bank FD | 3.50% to 8.50% | 4.00% to 9.00% |
ESAF Small Finance Bank FD | 4.00% to 8.50% | 4.50% to 9.00% |
Fincare Small Finance Bank FD | 3.00% to 8.51% | 3.60% to 9.11% |
Jana Small Finance Bank FD | 3.75% to 8.50% | 4.25% to 9.00% |
North East Small Finance Bank FD | 3.00% to 8.50% | 3.75% to 9.25% |
Suryoday Small Finance Bank FD | 4.00% to 9.10% | 4.50% to 9.60% |
Ujjivan Small Finance Bank FD | 3.75% to 8.25% | 4.25% to 8.75% |
Unity Small Finance Bank FD | 4.50% to 9.00% | 4.50% to 9.50% |
Utkarsh Small Finance Bank FD | 4.00% to 8.25% | 4.60% to 8.60% |
Investing in small finance bank fixed deposits can be a lucrative option for individuals seeking high returns on their deposits.
FD Interest Rates of Top Foreign Banks in India
Foreign banks operating in India also offer competitive interest rates on fixed deposits. Here are the highest FD interest rates for deposits below Rs. 2 crore, effective from November 2024:
Name of the Foreign Bank | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
Barclays Bank FD | 5.40% to 6.00% | Not Applicable |
DBS Bank FD | 2.50% to 7.50% | 2.50% to 8.00% |
Deutsche Bank FD | 3.00% to 7.75% | 3.00% to 7.75% |
HSBC Bank FD | 2.85% to 7.50% | 3.35% to 8.00% |
Standard Chartered Bank FD | 2.75% to 7.35% | 2.75% to 7.85% |
Foreign banks offer an international banking experience and competitive FD rates to their customers in India.
Fixed Deposit Interest Rates Offered by Top NBFCs
Non-Banking Financial Companies (NBFCs) also provide competitive interest rates for their fixed deposit (FD) accounts. Below are the most attractive interest rates offered by prominent NBFCs for FDs.
Name of NBFC FD | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
LIC Housing Finance FD | 7.25% to 7.75% (up to deposit of Rs.20 crore for cumulative) | 7.50% to 8.00% (up to deposit of Rs.20 crore for cumulative) |
PNB Housing Finance FD | 7.35% to 7.70% (cumulative) | 7.60% to 7.95% (cumulative) |
Shriram City Union Finance FD | 7.34% to 8.18% | 8.06% to 8.68% |
Corporate/Company FD Interest Rates in India
Besides banks, several top corporates and companies in India offer fixed deposit schemes. These corporate FDs often come with attractive interest rates. Here are some examples:
Company | Maximum FD rate (per annum) |
Bajaj Finance | Up to 8.60% p.a. |
Mahindra Finance Ltd FD | 7.40% - 8.05% |
HDFC LTD FD | Up to 7.35% |
Housing and Urban Development Corporation (HUDCO) FD | Up to 7.50% p.a. |
Sundaram Finance Company FD | 7.25% p.a. - 7.53% p.a. |
Muthoot Capital FD | 7.50% p.a. - 7.75% p.a. |
Investing in corporate FDs can provide an alternative to traditional bank FDs while potentially offering higher returns.
Key Terms Related to Fixed Deposit Interest Rates
1. Maturity Closure: Maturity closure refers to the act of closing an FD account at the exact time of its maturity. When closed upon reaching the maturity date, the bank reimburses the principal amount along with the accrued interest earned during the chosen tenure.
2. Premature Withdrawal: In contrast to timely closure, premature withdrawal occurs when the depositor withdraws the entire deposited sum before the maturity date. Typically, premature withdrawal is subject to the policies of the respective bank. Banks often impose a penalty for breaking a fixed deposit before maturity, resulting in a lower interest rate payout on both the principal and accrued interest. However, some banks, like Yes Bank and Bank of Maharashtra, may waive this penalty in cases of emergency withdrawals.
3. Partial Withdrawal: As the name suggests, partial withdrawal permits depositors to retrieve a specific portion of funds from their fixed deposit account. This money can be used for emergencies or moved to another bank if better FD rates are available. Usually, partial withdrawals are permitted in increments of Rs. 1,000, and the bank may levy a 1% penalty. The remaining balance continues to earn interest at the originally agreed-upon rate.
Fixed Deposit Interest Rate Calculator
To calculate the interest you can earn on your fixed deposit, you can use an FD interest rate calculator. These calculators take into account factors such as the deposit amount, tenure, interest rate, and interest computation frequency to provide you with an accurate estimate of your returns. Using such a calculator can help you make informed investment decisions.
Choosing the Right Fixed Deposit
Selecting the right fixed deposit is crucial to maximize your returns and align your investments with your financial goals. Here are some factors to consider when choosing an FD:
- Interest Rates: Compare the interest rates offered by different bank FDs and financial institutions. Higher interest rates can significantly impact your returns over time.
- Safety Ratings: Evaluate the credibility of the institution by checking its safety rating provided by agencies like ICRA or CRISIL. Higher safety ratings indicate a lower risk of default.
- Type of FD: Decide whether you want a cumulative FD (interest compounded and paid at maturity) or a non-cumulative FD (interest paid regularly, e.g., monthly, quarterly, annually).
- Customer Service: Choose a bank or institution known for excellent customer service and a hassle-free account opening process.
Tax Implications of Fixed Deposits
Fixed deposit interest income is taxable, and the income you earn is categorized as "Income from Other Sources." Banks usually deduct TDS (Tax Deducted at Source) on interest income exceeding Rs. 40,000 in a financial year. However, you can submit Form 15G or Form 15H to the bank to avoid TDS if your total income is below the taxable limit.
Credit Rating Agency Rating of Corporate Fixed Deposits
Before investing in corporate fixed deposits, it's essential to check the credit ratings assigned by credit rating agencies like CRISIL, ICRA and CARE. These ratings indicate the credit quality and stability of the issuing company. Here's a brief overview of the credit rating categories:
Credit Rating Agency Rating of Corporate Fixed Deposits
Before investing in corporate fixed deposits, it's essential to check the credit ratings assigned by credit rating agencies like CRISIL, ICRA and CARE. These ratings indicate the credit quality and stability of the issuing company. Here's a brief overview of the credit rating categories:
- CRISIL Ratings:
FAA
High safety
FA
Adequate safety
FB
Inadequate safety
FC
High risk
FD
Default
NM
Not Meaningful
- ICRA Ratings:
MAAA
Highest credit quality
MAA
High credit quality
MA
Adequate credit quality
MB
Inadequate credit quality
MC
Risk-prone credit quality
MD
Lowest credit quality
Checking the credit ratings can help you make informed decisions when investing in corporate fixed deposits.
Fixed Deposit vs. Recurring Deposit (RD)
Fixed Deposit and Recurring Deposit are both popular investment options in India, but they differ in several ways:
- Deposit Time: FD requires a lump-sum deposit at the beginning, while RD involves making regular monthly deposits.
- Deposit Amount: FD allows varying deposit amounts, often with a minimum requirement, while RD mandates fixed monthly deposits, typically starting from Rs. 500.
- Deposit Tenure: FD offers flexible tenures ranging from 7 days to 10 years, while RD tenures typically range from 6 months to 10 years.
- Payout Options: FD offers payout options like monthly, quarterly, or yearly, while RD provides payouts only after maturity.
- Auto-Renewal Facility: FDs can be set for auto-renewal, while RDs do not offer this feature.
- Tax-Saving Facility: Tax-saving benefits are available for fixed deposits but not for recurring deposits.
FAQs on Fixed Deposit
1. Is FD a good investment?
Yes, FDs are considered a good investment choice due to their safety, guaranteed returns, and liquidity.
2. Why invest in Fixed Deposits (FD)?
FDs offer guaranteed returns, tax benefits under Section 80C, low risk, and liquidity through loans against FD.
3. What is the minimum period for a fixed deposit?
A fixed deposit can be opened for a minimum period of 7 days.
4. What is the minimum amount that can be deposited in an FD account?
The minimum deposit amount varies from bank to bank but can be as low as Rs. 50.
5. Can I get monthly interest on a fixed deposit?
Yes, you can choose to receive monthly interest payouts on your fixed deposit.
6. Can I prematurely withdraw from a Tax Saver Term Deposit?
No, Tax Saver Term Deposits have a lock-in period of 5 years, and premature withdrawal is not allowed.
7. What is the maximum duration for which an FD account can be opened?
You can open an FD account for a maximum period of 10 years.
8. Do all NBFCs offer the option of opening an FD account with them for a period of 10 years?
No, not all NBFCs offer FDs with a 10-year tenure.
9. What is the maximum exemption that I can get under tax saver FDs?
The maximum exemption as per Income Tax Act under Section 80C through tax saver FDs is Rs. 1.5 lakhs.
10. Do banks charge a penalty for premature withdrawal of FD?
Yes, banks typically charge a penalty for premature withdrawal of FDs.
11. How can I get the maximum returns from my fixed deposit?
To maximize returns, compare FD rates across different banks, choose a suitable tenure, and consider reinvesting the maturity amount.
Latest & Update Fixed Deposit Rate News
Shriram Finance launches digital only fixed deposit scheme with interest rate of 8.15% 23 Apr 2024
Shriram Finance Limited, a leading NBFC, has come up with a digital only ‘Unnati' FD scheme that can be availed through its 'One' App and website from April 22, 2024. Customers can get a 'Shriram Unnati' FD with a tenure of 15 months at an interest r...
Read moreShriram Finance Limited, a leading NBFC, has come up with a digital only ‘Unnati' FD scheme that can be availed through its 'One' App and website from April 22, 2024. Customers can get a 'Shriram Unnati' FD with a tenure of 15 months at an interest rate of 8.15%. Other features and benefits are: Women investors and senior citizens are eligible for an additional benefit of 0.50% and 0.10% respectively. All other depositors can avail an additional interest rate of 0.25% on the FD renewal (Which will be done digitally through online channels). The minimum deposit amount for these FDs is Rs. 5000. Meanwhile, Shriram Finance has also increased the interest rates on its digital-only recurring deposits (RDs) or fixed investment plan (FIP) by 35 to 40 bps points. Therefore the news interest rates are as follows: Tenure of 12 months - 23 months - 8.50 percent vs 8.10% earlier Tenure of 24 months - 35 months - 8.75 percent vs 8.40% earlier Tenure of 36 months - 48 months - 9 percent vs 8.60%. Women depositors can avail an additional interest rate of 0.10 percent. The minimum deposit amount for this recurring deposit is Rs. 1000 per month. Effective April 22, 2024 customers will no longer be able to take a RD/FIP or FD from the company's branches or through its representatives. Both the Unnati fixed deposit and the FIP or RD scheme will be available only on the Shriram One app and the Shriram Finance website online. Disclaimer: This newsbyte includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.
Tax Saving FDs: These Largest Banks Offer 26 Dec 2023
Tax saving FDs are good investment options that help you cut down on taxes. They offer Section 80C tax deduction benefit, up to an investment of Rs. 1.5 lakhs. They have a tenure of 5 years and are among the least risky options. Premature withdrawal...
Read moreTax saving FDs are good investment options that help you cut down on taxes. They offer Section 80C tax deduction benefit, up to an investment of Rs. 1.5 lakhs. They have a tenure of 5 years and are among the least risky options. Premature withdrawals are not allowed and interest in this investment is taxable. Here are some of the best interest rates provided by top banks on tax saving FDs. HDFC Bank, ICICI Bank, and Axis Bank offer an interest rate of 7% on tax saving FDs. The interest rate given by Canara Bank and Union Bank is 6.7%. State Bank of India, Punjab National Bank, and Bank of Baroda provide an interest rate of 6.5%. Indian Bank and Bank of India provide an interest rate of 6.25% and 6% respectively.
Top 5 Banks Giving Highest Fixed Deposit Interest Rates 1 Nov 2023
The RBI has raised the benchmark interest rate by a total of 250 basis points from May last year. The increase in interest rates has led to a hike in fixed deposit and term deposit interest rates. The highest interest rate of 7.5 percent is now offer...
Read moreThe RBI has raised the benchmark interest rate by a total of 250 basis points from May last year. The increase in interest rates has led to a hike in fixed deposit and term deposit interest rates. The highest interest rate of 7.5 percent is now offered by IDFC First Bank for an FD of one to two years. Bank of Baroda offers 7.25 % interest rate on an FD of 2 to 3 years. SBI offers 6.8% interest rate to regular citizens on one-year FD and a maximum interest rate of 7.10% on FDs with a tenure of 400 days. HDFC Bank offers an interest rate of 6.6% per annum for a deposit of one year tenure. The maximum rate of interest of 7.2 percent is offered on deposits of tenure between 4 years 7 months to 55 months. Bank of Baroda offers an interest rate of 6.75 percent on one-year deposits. The maximum interest rate of 7.25 percent is offered on the deposits of tenure between 2 to 3 years. All the banks offer 50 basis points extra on FD interest rates for senior citizens.
These three banks have revised fixed deposit interest rates ahead of RBI Policy Meeting 26 Oct 2023
HDFC Bank, IndusInd Bank, and Punjab & Sind Bank have revised FD rates ahead of RBI's monetary policy committee meeting. The revised rates for HDFC Bank range from 3% to 7.20% for general customers on deposits maturing in 7 days to 10 years. Senior c...
Read moreHDFC Bank, IndusInd Bank, and Punjab & Sind Bank have revised FD rates ahead of RBI's monetary policy committee meeting. The revised rates for HDFC Bank range from 3% to 7.20% for general customers on deposits maturing in 7 days to 10 years. Senior citizens will earn an interest rate of 3.5% to 7.75% on these deposits. IndusInd Bank has revised its interest rates on fixed deposits of less than Rs. 2 crores. Interest rates now range from 3.50% to 7.85% for the general public and 4.25% to 8.25% for senior citizens. Punjab & Sind Bank (PSB) has revised its interest rates on fixed deposits of less than Rs. 2 crores. Now, the interest rates range from 2.8% to 7.35% on deposits maturing in 7 days to ten years. Senior citizens and super senior citizens will be given additional interest rates of 0.50% and 0.15% on deposits maturing in 180 days and above.
Banks Hike Fixed Deposit Interest Rates for General and Senior Citizens17 Oct 2023
Several banks have increased the fixed deposit interest rates for general and senior citizens this month. Here are the revised FD interest rates of top banks. Unity Small Finance Bank Limited (Unity Bank) is now offering an interest rate of 9.45% p.a...
Read moreSeveral banks have increased the fixed deposit interest rates for general and senior citizens this month. Here are the revised FD interest rates of top banks. Unity Small Finance Bank Limited (Unity Bank) is now offering an interest rate of 9.45% p.a. for senior citizens and 8.95% p.a. for general citizens for fixed deposits invested for 701 days. The bank is offering an interest of 9.5% p.a. to senior citizens and 9% to others for deposits which have a duration of 1001 days. Bank of Baroda is offering up to 7.9% interest to senior citizens on deposits of 2 to 3 years. Under the Tiranga Plus Deposit Scheme, BoB is offering 7.8% interest to senior citizens for deposits with duration of 399 days. Bank of Maharashtra is now giving an FD rate of 4.75 per cent on short-term deposits of 46 to 90 days. Canara Bank, Yes Bank, Karnataka Bank, IndusInd Bank, IDFC First Bank, and Bank of India are giving interest rates of 7.75% p.a., 8% p.a., 7.75% p.a., 8.25% p.a., 8% p.a., and 7.75% p.a. respectively for senior citizens.
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