Fixed Deposit

Fixed Deposits are a great investment option as it comes with a number of benefits. Many banks are now offering high interest rates on term deposits and the interest income is guaranteed. A fixed deposit is a type of investment plan where an investor puts aside a certain fixed sum of money and earns interest for a particular tenure. Most banks in India are offering competitive rates of interest on term deposits. The interest rate usually ranges from 5% to 7.50% for individuals and 5.50% to 8% for senior citizens.

Fixed Deposit Interest Rates for Top Banks 2018
Fixed Deposits with Bank Tenure (Min-Max) Regular Interest Rates
IDFC Bank 366 days 7.50%
Lakshmi Vilas Bank 1 year to 5 years 7.30% to 7.35%
DCB Bank 1 year to 5 years 7% to 7.25%
RBL Bank 1 year to 5 years 7.15% to 7.25%
Deutsche Bank 1 year to 5 years 7.00% to 8.00%
Bandhan Bank 1 year to 5 years 7.00% to 7.10%
Karur Vysya Bank 1 year to 5 years 6.75% to 7.00%
Tamil Mercantile Bank 1 year to 5 years 6.90% to 7%
Karnataka Bank 1 year to 5 years 6.50% to 7.25%
HDFC Bank 1 year to 5 years 6.25% to 7.00%
IndusInd Bank 1 year to 5 years 6.50% to 7.00%
Oriental Bank of Commerce 1 year to less than 2 years 6.60%
Yes Bank 1 year to 10 years 6.75% to 6.90%
Union Bank 10 months to 10 years 6.50% to 6.75%
Axis Bank 1 year to 10 years 6.25% to 6.85%
ICICI Bank 1 year to 10 years 6.50% to 6.75%
IDBI Bank 1 year to 5 years 6.50% to 6.75%
Kotak Bank 1 year to 5 years 6.50% to 7.00%
Vijaya Bank 1 year to 5 years 6.50% to 6.75%
Punjab National Bank (PNB) 1 year to 10 years 6.25% to 6.75%
Bank of Baroda (BOB) 1 year to 10 years 6.60% to 6.70%
State Bank of India (SBI) 1 year to 10 years 6.40% to 6.75%

*Please note that interest rates are subject to change and can be revised without prior notice

FD interest rates: Things you should know

  • Fixed deposit interest rates vary from one bank to the other as it is primarily dependent on a bank’s business plan.
  • FD rates are calculated based on the amount of liquid cash a bank has at any given point in time. For instance, when demonetization happened, FD interest rates of all banks went down significantly because banks had access to more money than they were used to.
  • Nearly every bank offers special FD schemes, which come with a slightly higher rate of interest when compared to traditional FD.
  • Banks tend to change their interest rate on a daily basis for high-value deposits which tend to go beyond Rs.1 crore or more.
  • Public Sector Undertakings (PSUs) have their own fixed deposit interest rate offerings as well, which differ from one brand to the other.
  • Fixed deposits are eligible for TDS if they earn an interest of more than Rs.10,000 in a year.
  • Senior citizens get a higher fixed deposit interest rate when compared to the general public.
  • While company FDs come with higher interest rates, investing in them is always a risky proposition.

Why is a Fixed Deposit is better than a Savings Account?

We can give you a four reasons why a fixed deposit makes for a better investment option than a regular savings account.

Earn more Interest with a Fixed Deposit

Got a substantial amount of money? Don’t let it sit idle in your Savings Account. Put that money in a Fixed Deposit and earn more interest on it.

Fixed Deposits offer Higher fd rates

Interest rates offered on Fixed Deposits are higher than the interest offered on a Savings Account. Help your money grow with a Fixed Deposit.

Build a Credit History

In case you don’t have a credit history, you can create one by using a Fixed Deposit as collateral to secure a loan.

Senior Citizens get Higher Interest Rates Regularly

If you are over 60 years of age, you can avail a higher rate of interest on Fixed Deposits. You can also open a Fixed Deposit jointly with a senior citizen and get as much as 0.5% more than the interest rate for regular depositors.