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Fixed Deposit Interest Rates Jul 2017 - SBI, HDFC, ICICI Bank, PNB and others

Last Updated 27th Jul 2017

Fixed Deposit Rates in India

FD calculator calculates the maturity value of the deposited amount depending upon various factors

  • Fixed deposit is a fixed income instrument whereby the depositor earns interest at a fixed contracted interest rate for a defined period.
  • Interest rates on fixed deposits vary from bank to bank and based upon tenure of the fixed deposit and in some cases even by the amount deposited.
  • While the interest rate payable remains fixed for the period of the deposit, the rates offered for fresh deposits and for renewals may vary from time to time.
  • Interest may be paid either periodically (say, quarterly or half yearly or annually) or on maturity.
  • Interest is usually compounded quarterly in case of fixed deposits issued by banks.
FD Maturity Calculator
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Compare Fixed Deposit Rates and Calculators in India

Bank FD Tenure Interest Rates
SBI 7 Days - 10 Years 5.50% - 6.75% Explore More Calculator
HDFC Bank 7 Days - 10 Years 3.50% - 6.95% Explore More Calculator
ICICI Bank 7 Days - 10 Years 4.00% - 6.90% Explore More Calculator
Axis Bank 7 Days - 10 Years 3.50% - 7.00% Explore More Calculator
Kotak Bank 7 Days - 10 Years 3.50% - 6.75% Explore More Calculator
IDFC Bank 7 Days - 10 Years 4.00% - 7.50% Explore More Calculator
Bank of Baroda 7 Days - 10 Years 4.50% - 6.90% Explore More Calculator
Corporation Bank 7 Days - 10 Years 5.00% - 6.60% Explore More Calculator
IDBI Bank 15 Days - 20 Years 4.25% - 6.65% Explore More Calculator
Indian Bank 7 Days - 10 Years 4.00% - 6.50% Explore More Calculator
Indian Overseas Bank 7 Days - 10 Years 4.00% - 6.75% Explore More Calculator
OBC 7 Days - 10 Years 4.00% - 6.85% Explore More Calculator
PNB 7 Days - 10 Years 4.25% - 6.80% Explore More Calculator
SBBJ 7 Days - 10 Years 5.50% - 6.90% Explore More Calculator
Syndicate Bank 7 Days - 10 Years 4.75% - 6.80% Explore More Calculator
Allahabad Bank 7 Days - 10 Years 4.00% - 6.75% Explore More Calculator
Andhra Bank 7 Days - 10 Years 4.00% - 6.85% Explore More Calculator
Bank of India 7 Days - 10 Years 4.00% - 6.80% Explore More Calculator
Bank of Maharashtra 7 Days - 10 Years 4.25% - 6.50% Explore More Calculator
Canara Bank 7 Days - 10 Years 4.20% - 6.90% Explore More Calculator
Central Bank of India 7 Days - 10 Years 4.75% - 6.60% Explore More Calculator
Dena Bank 7 Days - 10 Years 4.50% - 7.00% Explore More Calculator
Punjab and Sind Bank 7 Days - 10 Years 4.00% - 7.00% Explore More Calculator
State Bank of Hyderabad 7 Days - 10 Years 5.50% - 6.90% Explore More Calculator
State Bank of Mysore 7 Days - 10 Years 5.50% - 6.90% Explore More Calculator
State Bank of Patiala 7 Days - 10 Years 5.50% - 6.90% Explore More Calculator
State Bank of Travancore 7 Days - 10 Years 5.50% - 7.00% Explore More Calculator
UCO Bank 7 Days - 10 Years 4.50% - 6.75% Explore More Calculator
Union Bank of India 7 Days - 10 Years 5.00% - 7.00% Explore More Calculator
Vijaya Bank 7 Days - 10 Years 4.00% - 6.50% Explore More Calculator
United Bank of India 7 Days - 10 Years 4.00% - 6.25% Explore More Calculator
Abhyudaya Cooperative Bank 7 Days - 10 Years 6.00% - 7.50% Explore More Calculator
Ahmedabad Mercantile Cooperative Bank 15 Days - 5 Years 4.50% - 7.25% Explore More Calculator
Akola Janata Commercial Cooperative Bank 1 Day - 10 Years 4.00% - 7.50% Explore More Calculator
Almora Urban Cooperative Bank 7 Days - 10 Years 4.00% - 7.65% Explore More Calculator
Bandhan Bank 7 Days - 10 Years 3.50% - 7.25% Explore More Calculator
Catholic Syrian Bank 7 Days - 10 Years 3.50% - 6.75% Explore More Calculator
Citibank 7 Days - 10 Years 3.00% - 5.75% Explore More Calculator
City Union Bank 7 Days - 10 Years 6.25% - 7.10% Explore More Calculator
DBS Bank 7 Days - 10 Years 4.00% - 6.70% Explore More Calculator
Deutsche Bank 7 Days - 4 Years 4.00% - 8.00% Explore More Calculator
Development Credit Bank 7 Days - 120 Months 4.00% - 7.25% Explore More Calculator
Dhan Laxmi Bank 1 Day - 10 Years 4.00% - 6.75% Explore More Calculator
DHFL 12 Months - 120 Months 7.75% - 8.00% Explore More Calculator
Federal Bank 7 Days - 10 Years 3.50% - 7.00% Explore More Calculator
HDFC 12 Months - 60 Months 7.40% - 7.40% Explore More Calculator
HSBC Bank 7 Days - 47 Months 3.15% - 6.50% Explore More Calculator
IndusInd Bank 7 Days - 10 Years 4.00% - 7.15% Explore More Calculator
Jalgaon Janata Sahakari Bank Ltd 7 Days - 10 Years 5.00% - 7.50% Explore More Calculator
Jammu And Kashmir Bank 7 Days - 10 Years 5.00% - 6.75% Explore More Calculator
Janakalyan Sahakari Bank Ltd 7 Days - 119 Months 4.25% - 8.00% Explore More Calculator
Janaseva Sahakari Bank Borivli 14 Days - 10 Years 4.00% - 8.50% Explore More Calculator
Kalyan Janata Sahakari Bank 15 Days - 10 Years 4.50% - 8.25% Explore More Calculator
Kapol Cooperative Bank LTD 15 Days - 10 Years 5.00% - 8.00% Explore More Calculator
Karnataka Bank 7 Days - 10 Years 3.50% - 7.00% Explore More Calculator
Karur Vysya Bank 7 Days - 10 Years 5.00% - 7.00% Explore More Calculator
Lakshmi Vilas Bank 7 Days - 10 Years 4.50% - 7.00% Explore More Calculator
LIC Housing Finance 1 Year - 5 Years 7.30% - 7.50% Explore More Calculator
Nainital Bank 7 Days - 10 Years 4.00% - 7.90% Explore More Calculator
PNB Housing Finance 12 Months - 120 Months 7.25% - 7.25% Explore More Calculator
RBL Bank 7 Days - 20 Years 5.00% - 7.65% Explore More Calculator
South Indian Bank 7 Days - 10 Years 4.00% - 6.75% Explore More Calculator
Standard Chartered Bank 7 Days - 5 Years 4.25% - 7.00% Explore More Calculator
Tamilnad Mercantile Bank 15 Days - 10 Years 5.00% - 7.00% Explore More Calculator
Yes Bank 7 Days - 10 Years 5.75% - 7.15% Explore More Calculator

Comparison of Banks and institution FDs

Bank FD NBFC FD, HFC FD Corporate FD
Safety Highest Typically lower than banks Typically lower than banks
Credit rating Not required Mandatory Mandatory
Interest Rates Market linked, lower than other FD’s Typically higher than banks but linked to credit rating Typically higher than banks but linked to credit rating
FD Tenure Few days to 10 years 1 year to 5 years 1 year to 5 years
Options available Non cumulative and cumulative Non cumulative and cumulative Non cumulative and cumulative
Coverage under DCGCI Yes No No
Security None None None
Loan against FD Available at 0.5 – 1.0% over FD rate May be available Not available
Flexi/ Sweep facility Offered by many banks Not available Not available
Frequency of interest compounding Quarterly May vary May vary
Tax deduction at Source (TDS) On interest income of more than Rs. 10,000/ - for a PAN in one bank across branches On interest income of more than Rs. 5,000/ - for a PAN On interest income of more than Rs. 5,000/ - for a PAN
Tax Benefit Available on principal amount for long term deposits under Section 80-C None None
Availability Always on tap From time to time From time to time
Renewal Always possible at then interest rates From time to time From time to time
Nomination Facility Available Available Available
Employee FD’s > Available; slightly higher interest (upto 0.5%) may be offered Available; slightly higher interest (upto 0.5%) may be offered Available; slightly higher interest (upto 0.5%) may be offered
Special schemes for senior citizens 0.25% to 1.0% higher interest rates 0.25% to 1.0% higher interest rates 0.25% to 1.0% higher interest rates
Shareholder FD’s No extra benefit Slightly higher interest may be offered in some cases Slightly higher interest may be offered in some cases
Are fixed deposits secured?

Fixed deposits are not secured. However, deposits (including all types of deposits with a bank) of an individual or entity upto Rs. 100,000 with banks are guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Fixed Deposit Features
  • FD allows an individual to earn higher interest rate on surplus money as compared to normal saving accounts which earns only 4-6% p.a.
  • Its period can range from a few days to 10 years.
  • A separate deposit is issued each time an amount is deposited as FD. However, there is no limitation on how many FD’s one can open.
  • Depositor gets a fixed deposit receipt (FDR), which he/ she have to return to the bank at the time of maturity.
  • Bank Fixed Deposit's can be renewed if the depositor so desires. The fixed deposit rates applicable at the time of renewal (and not the FD interest rates at which the earlier FD is placed) will apply. FD’s issued by other entities may or may not be renewed depending upon their requirements.
  • An individual can avail loans against fixed deposit from the same bank from which the FD has been issued. Loans against a bank’s own FD are exempt from base rate benchmarked pricing and hence can be offered below base rate also. Typically banks offer loans against FD at 0.5 % to 1.0% above FD rate.
  • Part withdrawals are not allowed. However, in case of emergency an individual can close the fixed account prior to maturity date. In such cases, bank may charge a penalty to the investor and the rate of interest will change for the period. Let’s say Anita invested in an FD for, say, 6 years with interest rate of 8% with a bank in India but decided to withdraw the deposit after 2 years. The interest payable to Anita will be 1 – 2% less than the interest rate applicable on the date of deposit for 2 year tenure (says 7.5%). So, instead of the contracted rate of 8%, Anita will earn interest at 5.5% to 6.5%.
Who can issue a fixed deposit?
    A fixed deposit may be issued by any of the following entities:
  • Scheduled banks operating in India including public sector banks, private banks and foreign bank branches operating in India
  • Deposit taking NBFC’s permitted by the RBI to accept deposits
  • Housing Finance Companies regulated by the National Housing Bank
  • Public Sector Companies and Undertaking
  • Private Sector Companies
  • Cooperative banks
Bank Fixed Deposits - Advantages
  • Fixed return; no risk of lower return irrespective of market movements.
  • Higher interest rate compared to savings bank account.
  • Loan facility against FD from the same bank at low rates.
  • Channelizes surplus capital towards economic development of the country.
  • Safety and security of principal and interest.
Fixed Deposit Account - Disadvantages
  • Potentially lower returns compared to other investment options.
  • Penalty applicable in case of premature withdrawal.
  • No hedge against inflation in the economy.
Bank Fixed Deposit – Things to know
  • Compare fixed deposit rates of all banks.
  • Compare FD rates of non banks like NBFC’s, HFC’s and private companies in case you have higher risk appetite and can forego liquidity.
  • Check frequency of compounding when comparing FD rates. Always try and compare effective rates on same basis of compounding.
  • Mode of interest pay out and FD maturity – prefer direct credit to bank account to avoid delays and cheque handling.
  • Understand pre mature withdrawal facility offered on chosen FD and its penalty, if any
  • Find out if the bank offers auto sweep facility
Eligibility to open a fixed deposit account
  • Individual depositors above 18 years of age and having a PAN
  • Hindu Undivided Family (H.U.F) with a separate PAN
  • Minors (those below 18 years of age) under guardianship of a guardian more than 18 years old

All depositors must satisfy RBI mandated KYC guidelines which include identity proof, age proof and address proof, among others.

Renewal of Fixed Deposit

On maturity, the customer may renew the bank deposit by contacting the branch. Customer can also place an auto renewal request with the bank for either the maturity amount or only the principal component (in which case the interest, subject to TDS, will get credited to the depositor’s bank account).

Corporate, NBFC and HFC renewals are dependent upon their then existing policies.

Nomination facility on Fixed Deposits
  • All deposit accepting banks, NBFC’s, HFC’s and corporates offers nomination facility.
  • Nominee is a person who claims the deposit upon depositor’s death.
  • Without a nominee, money in Fixed Deposit account will not be automatically transferred to the account-holder’s next of legal heirs and the claimants will need to establish their bonafide with the bank.
  • Nominations can be changed or cancelled by the FD account holder.
Loan against Fixed Deposit
  • Banks offer facility of loan against FD. This is particularly helpful if the fixed deposit is for a long term and the requirement of funds is only for a brief period making it unattractive to break the fixed deposit. Loan against FD can be availed only from the same bank at which the deposit is placed.
  • Most banks allow loans upto 90% of the value of the fixed deposit.
  • Tenure for loan has to be within the balance maturity of the deposit.
  • The interest rate on a loan against Fixed Deposit is usually 0.5% – 2% above the interest rate on the deposit. Loans against bank’s own deposits are exempt from base rate and hence cane b offered below the bank’s base rate also.
  • Loan against Fixed Deposit can typically be availed even if the applicant has a poor credit history or CIBIL record and a low CIBIL score. Regular repayment of loan against FD may also help improve one’s CIBIL score.
Income tax on Fixed Deposit interest
  • Interest on FD’s is taxed at marginal tax rate applicable to the depositor. Hence, for a person in highest tax bracket, the post tax return on a FD that earns 9% interest may work out to just 6%.
  • One point that lot of depositors are unaware of is that interest income on FD’s is taxed on accrual basis. To explain this further, let's take the example of a cumulative fixed deposit of Rs. 100,000/ placed at 10% for 5 years on 1st April 2014. The maturity value of this FD will be Rs. 163,862 taking into account quarterly compounding. The first year interest accrued on this FD comes to Rs. 10,381. However, the depositor will not receive any interest credit on this FD in the year 2014-15 as the interest is payable on maturity. Still, the depositor must pay tax on the accrued interest in the year 2014-15 in the assessment year 2015-16.
  • In case the interest earned by you on fixed deposits with all branches of a bank in a year exceeds Rs. 10,000, your interest income will be subject to tax deduction of source (TDS) at 10.3%. Remember to quote your IT PAN when opening the fixed deposit, as otherwise the bank will need to deduct twice the tax at 20.6%. Also, you can claim credit for TDS only if your PAN is recorded with the bank.
Tax Saving Fixed Deposits

This is a special type of fixed deposit where the investor gets tax deduction on principal invested under Section 80-Cwhen they invest a sum of money in the deposit. The maximum benefit is available up to an investment of Rs. 1 Lakh with a lock-in period of 5 years. Different banks offer different schemes under this category. Interest rate may vary from bank to bank and the deposit amount. Premature withdrawal is not allowed under this category. However, if the deposit is encashed before maturity, the amounts held under this scheme do not qualify for deductions.

 Fixed Deposit
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