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Table of Contents
- Fixed deposit is a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens, various interest payment options and income tax deductions without any market related risks.
- The FD Interest Rates for the general public range from 3.00% p.a. to 9.50% for tenures from 7 days up to 10 years.
- Senior citizens are offered interest rates higher by 0.50% to 0.75% of the rates offered than the general public.
Check Post Office Fd Interest Rates
Bank FD Interest Rates
- In the diverse landscape of India’s financial market, Bank Fixed Deposit (FD) interest rates stand as a bedrock investment option, catering to the diverse needs of savers and investors alike.
- These rates wield significant influence on the country’s economic dynamics, affecting the decisions of millions of individuals and businesses seeking financial security and growth.
- Understanding the nuances of Bank FD interest rates in India is paramount for anyone looking to optimize their savings, generate a steady income stream, or achieve long-term financial goals.
- In this exploration, we will unravel the intricacies of Bank FD interest rates in India.
Small Finance Banks FD Interest Rates
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| AU Small Finance Bank | 8.00 | 6.75 | 8.00 | 7.25 |
| Capital Small Finance Bank Limited | 7.60 | 7.50 | 7.15 | 7.10 |
| Equitas Small Finance Bank | 8.50 | 8.20 | 8.00 | 7.25 |
| ESAF Small Finance Bank | 8.25 | 6.00 | 6.75 | 6.25 |
| Fincare Small Finance Bank | 8.61 | 7.65 | 8.11 | 8.00 |
| Jana Small Finance Bank | 8.50 | 8.50 | 7.25 | 7.25 |
| North East Small Finance Bank | 8.50 | 7.00 | 7.75 | 6.25 |
| Shivalik Small Finance Bank Limited | 8.10 | 8.10 | 8.00 | 7.00 |
| Suryoday Small Finance Bank | 8.65 | 6.85 | 8.60 | 8.25 |
| Ujjivan Small Finance Bank | 8.25 | 8.25 | 7.20 | 7.20 |
| Unity Small Finance Bank | 9.00 | 7.35 | 7.65 | 7.65 |
| Utkarsh Small Finance Bank | 8.50 | 8.00 | 8.50 | 7.50 |
Fixed deposit rates as of 3 January 2024
Source:Paisabazaar
Private Sector Banks FD Interest Rates
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Axis Bank | 7.10 | 6.70 | 7.10 | 7.00 |
| Bandhan Bank | 7.85 | 7.25 | 7.25 | 5.85 |
| City Union Bank | 7.00 | 6.75 | 6.50 | 6.25 |
| CSB Bank | 7.75 | 5.00 | 5.75 | 5.75 |
| DBS Bank | 7.50 | 7.00 | 6.50 | 6.50 |
| DCB Bank | 8.00 | 7.15 | 7.60 | 7.40 |
| Dhanlaxmi Bank | 7.25 | 6.75 | 6.50 | 6.60 |
| Federal Bank | 7.50 | 6.80 | 7.00 | 6.60 |
| HDFC Bank | 7.20 | 6.60 | 7.00 | 7.00 |
| ICICI Bank | 7.10 | 6.70 | 7.00 | 7.00 |
| IDBI Bank | 7.25 | 6.80 | 6.50 | 6.50 |
| IDFC First Bank | 7.75 | 6.50 | 7.25 | 7.00 |
| IndusInd Bank | 7.50 | 7.50 | 7.25 | 7.25 |
| Jammu & Kashmir Bank | 7.10 | 7.10 | 6.50 | 6.50 |
| Karnataka Bank | 7.25 | 6.95 | 6.50 | 6.50 |
| Karur Vysya Bank | 7.50 | 7.00 | 7.00 | 6.50 |
| Kotak Mahindra Bank | 7.25 | 7.10 | 7.00 | 6.20 |
| Nainital Bank | 7.05 | 6.70 | 6.25 | 5.75 |
| RBL Bank | 8.00 | 7.50 | 7.50 | 7.10 |
| SBM Bank India | 7.75 | 7.05 | 7.30 | 7.75 |
| South Indian Bank | 7.40 | 6.70 | 6.60 | 6.00 |
| Tamilnad Mercantile Bank | 7.00 | 7.00 | 6.50 | 6.50 |
| Yes Bank | 7.75 | 7.25 | 7.25 | 7.25 |
Fixed deposit rates as of 3 January 2024
FD Rates for Public Sector Banks
| Bank Name | Interest Rates (% p.a.) | |||
| Highest slab | 1-year tenure | 3-year tenure | 5-year tenure | |
| Bank of Baroda | 7.25 | 6.85 | 7.25 | 6.50 |
| Bank of India | 7.25 | 6.50 | 6.50 | 6.00 |
| Bank of Maharashtra | 7.00 | 6.50 | 6.25 | 6.00 |
| Canara Bank | 7.25 | 6.85 | 6.80 | 6.70 |
| Central Bank of India | 7.15 | 6.75 | 6.50 | 6.25 |
| Indian Bank | 7.25 | 6.10 | 6.25 | 6.25 |
| Indian Overseas Bank | 7.10 | 6.80 | 6.50 | 6.50 |
| Punjab & Sind Bank | 7.40 | 6.20 | 6.00 | 6.00 |
| Punjab National Bank | 7.25 | 6.75 | 7.00 | 6.50 |
| State Bank of India | 7.10 | 6.80 | 6.75 | 6.50 |
| UCO Bank | 6.50 | 6.50 | 6.30 | 6.20 |
| Union Bank of India | 7.25 | 6.75 | 6.50 | 6.50 |
Fixed deposit rates as of 3 January 2024
Fixed Deposit Rates – Tax Saving FD
| Banks | Interest Rates (p.a.) | |
| General Citizens | Senior Citizens | |
| AU Small Finance Bank | 7.25% | 7.75% |
| Axis Bank | 7.00% | 7.75% |
| Bandhan Bank | 7.00% | 7.50% |
| Bank of Baroda | 6.50% | 7.15% – 7.50% |
| Bank of India | 6.00% | 6.75% (6.90% for super senior citizens) |
| Bank of Maharashtra | 6.00% | 6.50% |
| Capital Small Finance Bank Limited | 7.10% | 7.75% |
| Central Bank of India | 6.25% | 6.75% |
| DCB Bank | 7.40% | 7.90% |
| Federal Bank | 6.60% | 7.25% |
| Fincare Small Finance Bank | 8.00% | 8.60% |
| HDFC Bank | 7.00% | 7.50% |
| ICICI Bank | 7.00% | 7.50% |
| IDBI Bank | 6.50% | 7.00% |
| IDFC First Bank | 7.00% | 7.50% |
| Indian Bank | 6.10% – 6.25% | 6.60% – 6.75% |
| Indian Overseas Bank | 6.50% | 7.00% |
| IndusInd Bank | 7.25% | 8.00% |
| Jammu & Kashmir Bank | 6.50% | 7.00% |
| Jana Small Finance Bank | 7.25% | 7.75% |
| Karnataka Bank | 6.50% | 6.90% |
| Kotak Mahindra Bank | 6.20% | 6.70% |
| Karur Vysya Bank | 5.90% | 5.90% |
| Punjab & Sind Bank | 6.00% | 6.50% |
| Punjab National Bank | 6.50% | 7.00% |
| RBL Bank | 7.10% | 7.60% |
| SBM Bank India | 7.75% | 8.25% |
| Shivalik Small Finance Bank Limited | 7.00% | 7.50% |
| South Indian Bank | 6.00% | 6.50% |
| State Bank of India | 6.50% | 7.50% |
| Suryoday Small Finance Bank | 8.25% | 8.75% |
| Tamilnad Mercantile Bank | 6.50% | 7.00% |
| UCO Bank | 6.20% | 6.70% |
| Ujjivan Small Finance Bank | 7.20% | 7.70% |
| Union Bank of India | 6.50% | 7.00% |
| Utkarsh Small Finance Bank | 7.50% | 8.10% |
Fixed deposit rates as of 2 January 2024
FD Interest Rates of Leading Foreign Banks
| Bank Name | Interest Rates (p.a.) | |||
| Highest slab (%) | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | |
| Deutsche Bank | 8.00 | 7.00 | 8.00 | 7.50 |
| HSBC Bank | 7.25 | 4.00 | 7.00 | 6.00 |
| Standard Chartered Bank | 7.50 | 7.15 | 7.10 | 6.75 |
Fixed deposit rates as of 3 January 2024
Features of FD Interest Rates
- Fixed deposits typically offer higher interest rates, making them a preferable option for those seeking better returns than a regular savings account.
- Indian residents, including minors and Hindu Undivided Families (HUFs), can open a fixed deposit account.
- In the application form, depositors have the option to select two nominees who are authorized to claim the FD amount upon presenting valid proof of the account holder’s demise.
- Premature withdrawal of fixed deposits is generally not permitted. However, in case of emergencies, depositors can withdraw the amount by paying a penalty.
- Banks offer a Sweep-in facility for term deposits, allowing depositors to link their savings bank account with a fixed deposit account. This feature enables automatic transfers of surplus funds from the savings account to the FD account. It grants depositors the opportunity to earn FD interest rates on their savings account while retaining the flexibility to break the FD at any time and access the funds.
- All banks provide the option to obtain loans against FDs to address financial emergencies. The deposited amount serves as collateral for the loan, with borrowers typically eligible for loans ranging from 75% to 95% of the FD amount, depending on the bank. The interest rate on these loans is usually 1% to 1.5% higher than the FD rate.
- Deposit Amount: Banks typically offer lower interest rates on bulk deposits exceeding Rs. 1 crore and higher rates on deposits less than 1 crore. DHFL Bank, for instance, is one of the banks offering the highest interest rates, with rates reaching up to 9.25% for fixed deposits. These rates are influenced by changes in the RBI monetary policy, including factors like the repo rate, base rate, banks’ internal liquidity position, credit demand, economic conditions, and more. The variables affecting bank FD rates include the deposited amount, deposit tenure, and depositor type.
Fixed Deposit Interest Rates – Senior Citizens
Most banks typically offer slightly higher interest rates to senior citizens compared to the rates available to the general population. However, to qualify for a senior citizen account and access these benefits, individuals must provide proof of their age. The deposited funds can be transferred between the savings account and the fixed deposit account, often referred to as a “Sweep-in Sweep-out” fixed deposit. This arrangement allows depositors to earn increased interest rates on any surplus funds in their savings accounts.
- To be eligible for a senior citizen account, the individual’s age must be 60 years or older at the time of account opening.
- Senior citizen fixed deposit tenures typically range from 7 days to 10 years at most banks.
- Senior citizen fixed deposits offer interest rates that are typically 0.25% to 0.75% higher than regular interest rates.
- Senior citizens can use their fixed deposit accounts as collateral for loans.
- Similar to other deposit schemes, premature withdrawal of a senior citizen fixed deposit may incur penalties.
Key Terminology Related to FD Interest Rates
- Timely Maturation: Timely maturation denotes the closure of a fixed deposit account only upon its specified maturity date. When closed at maturity, the bank reimburses the principal amount along with the accrued interest for the chosen tenure.
- Premature FD Withdrawal: This stands in contrast to timely maturation, as it involves the depositor withdrawing the entire deposited amount before the maturity date. Typically, premature withdrawals are subject to the bank’s policies, and banks may impose a penalty for breaking the FD before maturity. The bank returns the principal amount and interest at a reduced interest rate in such cases. Nevertheless, certain banks, such as Yes Bank and Bank of Maharashtra, may waive the penalty for withdrawals prompted by emergencies.
- Partial Withdrawal: Partial withdrawal permits the depositor to withdraw a portion of the funds from the fixed deposit account. This can be used for emergencies or deposited in another bank if more favorable FD rates are available elsewhere. Usually, withdrawals are allowed in increments of Rs. 1000, and a 1% penalty is imposed by the bank. However, the remaining balance continues to earn interest at the original rate.
FD Interest Rate Calculator
It’s only natural to want to determine the interest you’ll accrue on your FD upon maturity. You can easily achieve this using an FD calculator accessible online, which will reveal the total interest you’ll accumulate over the tenure. Alternatively, you can calculate it using the formula below:
A = P * (1 + r/n) ^ n*t
Where:
I = A – P
A = Maturity amount
P = Principal amount
r = Rate of interest
t = Tenure
n = Compounded interest frequency
I = Interest earned
Taxation on FD Interest Rates
Income earned from FDs is categorized as income from other sources and is fully subject to taxation. However, banks do not deduct any tax at Source (TDS) if the interest income from fixed deposits is below Rs. 40,000 in a year. To benefit from this exemption, you must submit Form 15G or Form 15H to the bank at the start of the financial year. Once these forms are submitted, the bank will not deduct TDS.
Tax Saving FD
Tax-saving FDs are a specialized deposit scheme that allows for a tax exemption of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. Some key features of tax-saving FDs include:
- A minimum lock-in period of 5 years.
- No premature or partial withdrawal options are available.
- Loans cannot be availed against tax-saving FDs.
What is a Flexi Fixed Deposit?
A Flexi deposit provides depositors with the option to link their deposit account to a savings bank account.
Fixed Deposit Investment Advice
- When considering an investment in fixed deposits, it’s crucial to weigh factors like maturity, interest rates, and penalties for early withdrawal.
- Additionally, conduct research on the latest interest rate trends. If you intend to reinvest when interest rates rise, consider opting for a shorter-term FD, and vice versa.
- Before making a final decision, review the interest rates offered for different tenures. Some banks may offer higher rates for specific durations.
- Also, ensure careful budget planning for expenses before making investments to avoid impacting your financial plan.
Conclusion
Sure, FDs are good investment opportunities. But, the best investment option is real estate structured debt.
If you are seeking promising investment prospects in India, especially in the realm of fixed income, consider exploring the real estate market. One particularly enticing option within this domain is structured debt investments, with a specific focus on the commercial real estate investment sector.
These structured debt investments in real estate entail customized financing solutions tailored to suit commercial real estate projects. They present investors with the prospect of potentially securing attractive returns and regular income streams. What’s notable is that entry into this investment avenue is accessible with a relatively modest initial investment of 10 lakhs, and it holds the potential to yield returns.
These investment opportunities are made available through well-established alternative investment platforms like Assetmonk.
Assetmonk distinguishes itself as an outstanding alternative investment platform in India, presenting a diverse range of appealing options for astute investors. Within these opportunities, individuals can delve into the domain of structured debt investments within the commercial real estate sector and a carefully curated assortment of alternative investment selections.
Assetmonk offers exclusive and customized investment possibilities to its esteemed clientele, with a minimum investment requirement of 10 lakhs and a guaranteed Internal Rate of Return (IRR) of 17 percent.
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FD Interest Rates FAQs
Q1. What is the minimum amount to open an FD account?
A. If you choose to open an FD account using mobile banking or net banking, the minimum required amount is Rs. 5000. However, if you visit the nearest branch in person, the minimum investment amount is Rs. 10,000.
Q2. What is the minimum tenure for which one can open an FD account?
A. A fixed deposit account can be initiated with a minimum duration of 7 days in banks and 1 year in NBFCs..
Q3. Can I get generate monthly income or interest from FD account?
A. Certainly. When you open the account, simply choose the monthly interest payment option from the available choices, which also include quarterly, half-yearly, and annual interest payment options.
Q4. How is the interest on a Bank Fixed Deposit calculated?
A. The interest on a Bank FD is calculated in the following manner below.
- For tenures shorter than 6 months: Interest is computed using simple interest principles and is based on the duration of time.
- For tenures of 6 months and beyond: Interest is compounded quarterly, which means that the interest earned during the previous quarter is added to the principal for the final interest calculation.
- Regarding monthly interest payouts: The interest is disbursed at a slightly adjusted rate compared to the standard rate. If the depositor has selected a quarterly payout option, the interest will be computed and disbursed on a quarterly basis.
