Best FD Rates in India
Fixed Deposit meaning
As an investment instrument offered by banks and NBFCs (non-banking financial companies), fixed deposits are a great way to grow your savings with utmost security. This is one of the most preferred avenues that enables you to deposit a lump sum with your financier and can choose a term as per your convenience. Upon completion of the pre-determined tenure, your deposit starts accruing interest during the chosen period, according to the interest rate you have closed in your deposit. Once your investment amount is locked to a specific interest rate, it remains unaffected by further changes in interest rates or market fluctuations. Thus, you can get guaranteed returns on your deposits, and you can choose to receive your interest from time to time or based on maturity. Usually, the defining criteria for FDs is that money cannot be withdrawn before maturity, but you can withdraw it after paying the penalty.
Benefits of fixed deposits
Fixed deposits are one of the safest investment instruments, providing the highest stability over fixed deposits. This has been assured, and there is no risk of loss of principal. You can opt for monthly interest payment, so that you can manage your monthly expenses. Market fluctuations have no effect. Your fixed deposit, which ensures greater security of your investment capital. Senior financiers also offer higher FD interest rates for senior citizens
Features of Fixed Deposits
Long-term investment: The main goal of FD is to keep your money safe for long term while earning you steady interest.
Lump sum deposit: You only need to deposit money once (lumpsum payment). If you have extra money and don’t need it in the immediate future, then opening an FD is the best way to keep them safe.
Fixed Deposit Receipt: After depositing the money you will get FD receipt. You can also request an electronic copy. Keep it safe, because you must deposit it to withdraw money or renew account post maturity.
Interest payment: FD interest is paid monthly or quarterly as per the depositor’s request. For example, you can request that banks credit interest to a specific savings account in your name.
Tax-efficiency: You can opt for tax-saving FD and Rs. Can invest up to Rs. 1.5 lakhs for saving on income tax. Income is taxable and tax is deducted at source as per Income Tax Act 1961.
Best FD Rates by Top Banks
Bank |
Highest FD Rates* (p.a.) – 1 year |
3 years |
5 years |
|||
Regular Citizens |
Senior Citizens |
Regular Citizens |
Senior Citizens |
Regular Citizens |
Senior Citizens |
|
| IndusInd Bank | 7.00% | 7.50% | 6.75% | 7.25% | 6.75% | 7.25% |
| DCB Bank | 6.50% | 7.00% | 6.95% | 7.45% | 6.95% | 7.45% |
| Kotak Mahindra Bank | 4.75% | 5.25% | 4.90% | 5.40% | 4.50% | 5.00% |
| YES Bank | 6.75% | 7.25% | 6.75% | 7.25% | 6.75% | 7.25% |
| ICICI Bank | 5.00% | 5.50% | 5.10% | 5.60% | 5.35% | 5.85% |
| HDFC Bank | 5.10% | 5.60% | 5.20% | 5.70 % | 5.35% | 5.85% |
| SBI | 5.10% | 5.60% | 5.30% | 5.80% | 5.40% | 6.20% |
| RBL Bank | 7.00% | 7.50% | 7.25% | 7.75% | 6.75 % | 7.25% |
| Axis Bank | 5.20% | 5.85% | 5.50% | 6.00% | 5.50% | 6.00% |
| DBS | 4.15% | 4.15% | 4.70% | 4.70% | 5.20% | 5.20% |
| IDFC First Bank | 6.75% | 7.25% | 6.75% | 7.25% | 6.75% | 7.25% |
| Bandhan Bank | 5.75% | 6.50% | 6.00% | 6.75% | 6.50% | 6.50% |
| Canara Bank | 5.40% | 5.90% | 5.35% | 5.85% | 5.30% | 5.80% |
| Federal Bank | 5.35% | 5.85% | 5.50% | 6.00% | 5.50% | 6.00% |
| PNB | 5.25% | 6.00% | 5.25% | 6.00% | 5.30% | 6.05% |
| Bank of Baroda | 5.10% | 5.60% | 5.10% | 5.60% | 5.30% | 5.80% |
