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Fixed Deposit Interest Rates 2021

Check the Latest FD Interest Rates

Last Updated 17th Oct 2021

You can earn up to ₹ 34,750 per lakh if you open an FD account online.

The fixed deposits interest rate varies on factors such as Government policies, economic conditions and liquidity conditions in the market.

Banks FD Interest Rates FD Interest Rates Senior Citizens Tenure
HDFC 6.20% - 6.65% 6.00% - 6.50% 33 months to 99 months
PNB Housing Finance 5.90% - 6.70% 6.15% - 6.95% 12 months to 120 months
Bajaj Finance 5.65% - 6.50% 5.90% - 6.75% 12 months to 60 months
Earn upto 6.95% on FD APPLY NOW

Compare Bank FD Interest Rates, 2021

A comparison of FD rates of all banks across all tenure shows that currently, Yes Bank offers the best FD rates in India, of 7.50% for deposits with a tenure of 2 years to 3 years for borrowers below 60 years age. For Senior Citizens FD, Yes Bank has the best interest rate of 7.25% for a tenure of 3 Years to 10 Years .

Similarly, If you compare fixed deposit rates of small finance banks as per the latest FD rates, Jana Small Finance Bank offers the best FD rate of 7.25% for deposits with a tenure of 3 Years 1 Day to 4 Years 364 Days , thus making it a good choice for depositors looking to earn high interest rate without compromising on the safety of their deposits.

Bank FD Interest Rates Senior Citizen FD Interest Rates
SBI FD Interest Rates
Compare
2.90% - 5.40% 3.40% - 6.20%
HDFC Bank FD Interest Rates
Compare
2.50% - 5.50% 3.00% - 6.25%
ICICI Bank FD Interest Rates
Compare
2.50% - 5.50% 3.00% - 6.30%
Axis Bank FD Interest Rates
Compare
2.50% - 5.75% 2.50% - 6.25%
ICICI Home Finance FD Interest Rates
Compare
4.30% - 6.45% 4.55% - 6.70%
PNB Housing Finance
Compare
5.90% - 6.70% 6.15% - 6.95%
Kotak Bank
Compare
2.50% - 5.25% 3.00% - 5.75%
IDFC First Bank
Compare
2.75% - 5.75% 3.25% - 6.25%
Bank of Baroda
Compare
2.80% - 5.25% 3.30% - 5.75%
Citibank
Compare
2.40% - 3.50% 2.90% - 4.00%

FD Interest Rates 2021

Amongst a number of benefits offered by fixed deposits, guaranteed returns is the most sought after. However, the returns offered on FD are not the same and universal across different providers, indeed, it varies across all. Thus, the highest FD interest rates across all banks and NBFCs is an important thing to look at before investing. One can invest in FDs with Banks or NBFCs that have the highest ratings of AAA, rated by ICRA and CRISIL and get assured returns.

Currently, the rate has dropped to 6.95% from 7.25%. The decrease of 0.3% in FD rates is effective from 1 Feb, 2021. As on 17 Oct, 2021, PNB Housing Finance, Karnataka Bank offers highest fixed deposit rates of 6.95%.

Best FD Rates in India

FD Tenure Highest FD Rate Banks with highest FD rate
1 year FD 6.25% Jana Small Finance Bank
2 year FD 6.50% IndusInd Bank, Jana Small Finance Bank
3 year FD 6.50% Jana Small Finance Bank, Ujjivan Small Finance Bank
5 year FD 6.70% India Post Office

The top bank for 1 year fixed deposit is Jana Small Finance Bank, as it offers the highest interest rate of 6.25% on regular term deposits. For 5 year FD, India Post Office should be your top choice as its rhighest interest rate is 6.70%.

Current FD Rate for 1 Year

FD one year interest rate ranges from 4.90% to 6.25%. Jana Small Finance Bank has the highest current fd interest rates of 6.25% for a one year fixed deposit. If you are looking to open for 1 year compare top 5 banks with highest 1 year rates on FDs as of 17 Oct 2021.

Highest 1 Year FD Rates as on 17 Oct 2021

Banks 1 Year FD Rate Senior Citizen Rates for 1 year FD
Jana Small Finance Bank 6.25% 6.75%
RBL Bank 6.00% 6.50%
Ujjivan Small Finance Bank 6.00% 6.50%
Yes Bank 6.00% 6.50%
IndusInd Bank 6.00% 6.50%

Current FD Rates for 2 Year

Current rates for 2 years range from 4.55% to 6.50%. IndusInd Bank, Jana Small Finance Bank offers the highest interest rate of 6.50% for a 2 year term deposit.

Highest 2 Year FD Rates as on 17 Oct 2021

Banks 2 Year FD Rate Senior Citizen Rates for 2 Year FD
Jana Small Finance Bank 6.50% 7.00%
IndusInd Bank 6.50% 7.00%
Yes Bank 6.25% 6.75%
Ujjivan Small Finance Bank 6.00% 6.50%
RBL Bank 6.00% 6.50%

Latest FD Rate for 3 Years

As of 17 Oct 2021, 3 year interest rate on fixed deposits ranges from 4.90% to 6.50%. Jana Small Finance Bank, Ujjivan Small Finance Bank have the best rate of 6.50% for 3 years.

Highest 3 Year FD Rates as on 17 Oct 2021

Banks 3 Year FD Rate Senior Citizen Rates for 3 Year FD
Ujjivan Small Finance Bank 6.50% 7.00%
Jana Small Finance Bank 6.50% 7.00%
Yes Bank 6.25% 7.25%
Equitas Small Finance Bank 6.00% 6.50%
Syndicate Bank 5.50% 6.00%

Banks which offers Best FD Rates in India for 5 Years

As per the existing rates, 5 year FD rates range from 5.00% to 6.70%. India Post Office is the best bank to open a 5 year FD as it has the highest rate of 6.70% .

Highest 5 Year FD Rates as on 17 Oct 2021

Banks 5 Year FD Rate Senior Citizen Rates for 5 Year FD
India Post Office 6.70% 6.70%
Ujjivan Small Finance Bank 6.25% 6.75%
Jana Small Finance Bank 6.00% 6.50%
Equitas Small Finance Bank 5.75% 6.25%
IDFC First Bank 5.75% 6.25%

Fixed Deposit Interest Rates for Senior Citizens

Senior citizen fixed deposit interest rates / Senior Citizen FD rates are currently at 7.25% offered by Yes Bank for 36 Months from 3 Years to 10 Years . Bank FD Interest offered to senior citizens is typically 25-75 basis points higher than corresponding rates on regular FDs and other individuals. Senior citizens are required to submit their age proof to be eligible for higher rates on Senior Citizens FD.

Factors that affect FD Rates

Fixed Deposits are an important source of funds for banks that they lend to make profits. Bank FD interest rates vary by the amount deposited, tenure of deposit, type of depositor, and the amount of funding required by banks from FDs. List of factors that determine the interest rates on banks FD are:

  • Deposit Amount: Banks offer lower interest rate on bulk deposits of more than ₹ 1 crore and high interest rate on deposits of less than ₹ 1 crore.
  • Deposit Tenure: Banks offer lower rates of interest on deposits with a shorter tenure. Based on current rates, the highest rate on FDs with a tenure of less than 1 year is 6.80% and highest FD interest rates on the tenure of 10 years is 7.25%.
  • Depositor Type: All banks in India offer higher interest on senior citizens FDs. Currently, the interest rate on senior citizens FDs ranges from 1.75% to 7.25%, depending on the deposit amount and deposit tenure.
  • Funding Requirement: Large banks like SBI and HDFC Bank which have a wide access to low cost savings account, typically look to raise lower amounts from FDs and hence offer lower interest rates compared to new banks and small finance banks which are dependent on term deposits. Hence, small finance banks are relatively new private sector banks that will always offer higher interest rates on FDs opened with them.

Tax Saver FD Interest Rate

Tax Saving FD Minimum deposit Tax Saving
SBI Tax Saving Fixed Deposit ₹ 1,000 5.40%
HDFC Bank 5 Year Tax Saving Fixed Deposit ₹ 100 5.50%
Axis Bank Tax Saver Fixed Deposit ₹ 100 5.75%
Kotak Bank Tax Saving Fixed Deposit ₹ 100 5.25%
ICICI Bank Tax Saving Fixed Deposit ₹ 10,000 5.50%
Citibank Tax Saver Deposits ₹ 1,000 3.50%
Bank of Baroda Tax Savings Term Deposit N.A 5.25%
Corporation Bank Tax Saver Plus Deposit ₹ 100 5.60%
NB Tax Saver Fixed Deposit ₹ 100 5.25%
RBL Bank Tax Savings Fixed Deposits N.A 6.75%
Central Bank of India Tax Saving Deposit ₹ 100 5.10%
Syndicate Bank Tax Shield Deposit ₹ 100 5.50%
IDBI Bank Suvidha Tax Saving Fixed Deposit N.A 5.40%

FD Interest Calculator

Using the you can find out the total interest you will earn at the end of the tenure. The formula for calculating fixed deposit interest rates is shown below
A = P * (1+ r/n) ^ n*t
I = A – P
A = Maturity value
P = Principal amount
r = rate of interest
t = Number of years
n = Compounded interest frequency
I = Interest earned amount

How to Earn ₹ 34,750 Per Lakh on Online Fixed Deposit?

To earn ₹ 34,750 per lakh on an online FD for 60 months:-

  • Investment Amount - ₹ 1,00,000
  • FD Interest Rate - 6.95%
  • Tenure - 60 months
  • Calculation formula - Simple interest
  • Interest Payout - ₹ 34,750
  • FD Maturity Amount - ₹ 1,34,750

Note: Before investing in a fixed deposit account, you must compare the FD rates offered by different financial institutions. This way, you can earn the maximum returns.

ICRA rating list for Fixed Deposits

ICRA or Information Credit Rating Agency ratings help you to calculate the safety of your investment. The table below provides the ICRA ratings list for fixed deposits, highest is MAAA and lowest is MD:

ICRA RatingMeaning
MAAAHighest credit quality
MAA High credit quality
MAAdequate credit quality
MBInadequate credit quality
MCRisk prone credit quality
MDLowest credit quality

CRISIL Rating List for Fixed Deposits

Before investing in FD, you can also view the credit ratings of CRISIL for all banks and NBFCs.

RatingMeaning
FAAAHighest safety
FAAHigh safety
FAAdequate safety
FBInadequate safety
FCHigh risk
FDDefault
NMNot Meaningful

FAQs

Which is highest interest rate on fixed deposit in 2021?

The highest interest rate on fixed deposits in the market is offered by PNB Housing Finance at 6.95% for regular FD and 7.25% for senior citizens.

Did fixed deposit rates increase?

No, banks and NBFCs have reduced the best interest rate on FD by 0.3% and now stands at 6.95%. The highest rate on FD is being offered by PNB Housing Finance,Karnataka Bank. Earlier, the highest FD rate of upto 7.25% was offered by Yes Bank, Jana Finance Bank.

Why does the fixed deposit rate fluctuate?

The fixed deposit interest rate fluctuates due to changes in the prevailing macro-economic conditions. The various factors responsible for the change in fixed deposit interest rates include a higher inflation rate, liquidity condition, and demand and supply conditions.

Can I get monthly interest on FD?

Yes, you can get monthly interest on FD if you choose a monthly interest payout option. In Fixed Deposit, you earn interest on the principal amount, which can be calculated monthly, quarterly, half yearly or annually.

Is interest on FD taxable?

Yes, interest on FD is taxable. As per Income Tax Act 1961, under section 194A, when the interest earned on FD in a financial year exceeds ₹ 40,000, TDS of 10% is applicable on the credited interest. A depositor may also furnish Form 15G/15H to avail exemption from paying tax on his interest income. Tax saving FD interest rates vary from lender to lender, though TDS remains same.

Is there any deduction on FD interest?

Investors can submit Form 15 G to the bank, stating that they do not have taxable income to get tax deductions on interest earned on FD. Senior Citizens can submit Form 15 H for the same.

What is the interest rate on a Bank FD for senior citizens?

Senior citizens get higher rates between 0.25 and 0.75 percent on their FD than any of the regular deposit schemes offered by leading banks and NBFCs. Currently, Yes Bank offers the higher FD interest rate of 7.25% to senior citizens.

What is the minimum and maximum tenure for which I can open an account in FD?

You can open a fixed deposit account for a minimum of 7 days in banks and for 1 year in NBFCs. The maximum tenure for FD in NBFCs is 5-7 years, whereas banks provide a maximum tenure of 10 years.

Which bank has the highest FD interest rate in 2021?

Currently, PNB Housing Finance is best for fixed deposit because it has best FD rates in india. This bank offers fd for up to 6.95% for a tenure of 10 years.

When will the FD rate increase?

Experts believe that in the next 3-12 months, FD rates may start inching up as the economy gets into a sharp revival. The rates might go up by 2%-3%.

Why are FD rates falling?

Fd rates in all banks have been falling for the past 2-3 years because of the fragile economy. Also, the other reason behind such a decline is due to rate cuts by the central bank.

Do banks charge a penalty for early withdrawal of FD?

A fixed deposit is like a commitment where you have committed a certain sum of money with the bank for a specified tenure, and in return, the bank gives you interest at a specified rate. So, when you break the commitment in between, banks do charge a penalty on the surrender value, and you get less return on the invested sum.

Do FD Interest Rates in the Post Office remain higher as compared to banks?

Yes, fd interest rates in post offices are better than other banks if seen in today's time. Indian post office offer a 5 year FD for 6.00%.

In how many years FD will double?

The tenure within which the sum invested in FD will double depends directly on these factors; the rate of interest, amount invested, and the tenure of the deposit. Ensure that you do not prematurely close your fixed deposit, to have the maximum benefit.


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Our News - Oct 2021
  • 2021-10-12 : PNB Introduces PNB Pranam Fixed Deposit Scheme
    Punjab National Bank (PNB) has introduced a new fixed deposit scheme for senior citizen customers. A customer who has attained an age of 55 years can avail of this scheme and deposit maximum Rs 1,99, 99,999.
  • 2021-10-11 : Bank Of Baroda Offers Special Rate For Senior Citizens on FD
    Bank of Baroda (BOB) is has introduced special privileges for senior citizens on fixed deposits. This scheme has been extended till March 31, 2022. Under the scheme, the customers get a 1% additional interest rate for 5 years to 10 years and use video KYC facility and doorstep banking.
  • 2021-10-01 : Equitas Small Finance Bank Revises FD Rate
    Equitas Small Finance Bank has revised the return rate on fixed deposit schemes on various tenures. The bank is offering the highest interest rate of 6% for 2 years 1 day to 887 days and 5 years 1 day to 10 years. Senior citizens will get an extra 0.50% interest rate on all the tenures.
  • 2021-09-29 : SBI Extends Special Fixed Deposit Scheme for Senior Citizens
    SBI has extended the deadline for a special fixed deposit scheme for senior citizens till March 2022. Earlier, the SBI scheme, WE CARE, was valid until September 2021.
  • 2021-09-16 : RBI Moves Laxmi Vilas Bank Under a Moratorium
    Reserve Bank of India has placed Laxmi Vilas Bank under a 1-month moratorium. The central bank has restricted withdrawal amounts to Rs 25,000 per customer from any savings or deposit account. The moratorium period ends on November 26, 2021.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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