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FD Interest Rates

Fixed Deposit interest Rates 2021

Last Updated 11th May 2021

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

Banks FD Interest Rates Senior Citizen FD Interest Rates Tenure
PNB Housing Finance 5.90% - 6.70% 6.15% - 6.95% 12 months to 120 months
HDFC 5.75% - 6.25% 6.00% - 6.50% 33 months to 99 months
Bajaj Finance 5.65% - 6.50% 5.90% - 6.75% 12 months to 60 months

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Fixed Deposit Interest Rates Comparison 2021

A comparison of FD rates of all banks across all tenure shows that currently, Yes Bank offers the highest FD rate 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 7.50% 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, Equitas Small Finance Bank offers the best FD rate of 7.30% for deposits with a tenure of 888 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 2.90% - 5.40% 3.40% - 6.20%
HDFC Bank FD Interest Rates 2.50% - 5.50% 3.00% - 6.25%
ICICI Bank FD Interest Rates 2.50% - 5.50% 3.00% - 6.30%
ICICI Home Finance FD Interest Rates 4.30% - 6.45% 4.55% - 6.70%
Axis Bank FD Interest Rates 2.50% - 5.75% 2.50% - 6.25%
PNB Housing Finance 5.90% - 6.70% 6.15% - 6.95%
Kotak Bank 2.50% - 5.30% 3.00% - 5.80%
IDFC First Bank 2.75% - 6.00% 3.25% - 6.50%
Bank of Baroda 2.80% - 5.25% 3.30% - 5.75%
Citibank 2.40% - 3.50% 2.90% - 4.00%
IDBI Bank 2.90% - 5.10% 3.40% - 5.60%
Indian Bank 3.00% - 5.25% 3.40% - 5.75%
Indian Overseas Bank 3.40% - 5.20% 3.90% - 5.70%
OBC 3.00% - 5.30% 3.50% - 5.80%
PNB 3.00% - 5.30% 3.50% - 5.80%
HDFC 5.75% - 6.25% 6.00% - 6.50%
Allahabad Bank 2.90% - 5.25% 3.40% - 5.75%
Andhra Bank 3.00% - 5.60% 3.50% - 6.10%
Bank of India 3.25% - 5.30% 3.75% - 5.80%
Bank of Maharashtra 2.75% - 4.90% 2.75% - 5.40%
Canara Bank 2.95% - 5.50% 2.95% - 6.00%
Central Bank of India 2.75% - 5.10% 3.25% - 5.60%
Punjab and Sind Bank 3.10% - 5.25% 3.60% - 5.95%
UCO Bank 2.75% - 5.00% 3.00% - 5.50%
Union Bank of India 3.00% - 5.60% 3.50% - 6.10%
United Bank of India 3.00% - 5.30% 3.50% - 5.80%
Yes Bank 3.50% - 6.75% 4.00% - 7.50%
Karnataka Bank 3.40% - 5.70% 3.80% - 6.95%
DBS Bank 2.50% - 5.50% 2.50% - 5.50%
Standard Chartered Bank 2.50% - 5.40% 2.50% - 5.90%
Jammu And Kashmir Bank 3.00% - 5.30% 3.50% - 5.80%
Ujjivan Small Finance Bank 3.05% - 6.50% 3.55% - 7.00%
Jana Small Finance Bank 2.50% - 6.75% 3.00% - 7.25%
India Post Office 5.50% - 6.70% 5.50% - 6.70%
IndusInd Bank 3.00% - 6.50% 3.50% - 7.00%
Syndicate Bank 2.95% - 5.50% 2.95% - 6.00%
RBL Bank 3.25% - 6.60% 3.75% - 7.10%
Dhan Laxmi Bank 3.50% - 5.60% 4.00% - 6.10%
Bajaj Finance 5.65% - 6.50% 5.90% - 6.75%
HSBC Bank 2.25% - 4.00% 2.75% - 4.50%
Federal Bank 2.50% - 5.50% 3.00% - 6.00%
AU Small Finance Bank 3.50% - 6.50% 4.25% - 7.25%
LIC Housing Finance 5.50% - 5.60% 5.75% - 5.85%
Corporation Bank 3.00% - 5.60% 3.50% - 6.10%
DCB Bank 4.25% - 6.75% 4.75% - 7.25%
South Indian Bank 3.50% - 5.65% 4.00% - 6.15%
Bandhan Bank 3.00% - 6.00% 3.75% - 6.75%
Lakshmi Vilas Bank 2.50% - 6.00% 2.50% - 6.50%
Equitas Small Finance Bank 3.60% - 6.80% 4.10% - 7.30%
ESAF Small Finance Bank 4.50% - 6.50% 5.00% - 7.00%
Karur Vysya Bank 3.50% - 5.75% 3.50% - 6.15%

Highest FD Interest Rates

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 FD 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 in the FD. 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 best rate on Fixed Deposit has dropped to 7.25% from 7.25%. The decrease of 0% in FD rates is effective from 1 Feb, 2021. As on 11 May, 2021, DCB Bank, Jana Small Finance Bank, AU Small Finance Bank is providing the highest interest rate of FD upto 7.25%.

Best FD Interest Rates in India

FD Tenure Highest FD Rate Banks with highest FD rate
1 year FD 6.50% IndusInd Bank, RBL Bank, Ujjivan Small Finance Bank
2 year FD 6.50% IndusInd Bank, Jana Small Finance Bank, RBL Bank, Ujjivan Small Finance Bank, Yes Bank
3 year FD 6.65% Equitas Small Finance Bank
5 year FD 6.70% India Post Office

At the bank FD rates in 2021, top banks for 1 year FDs are IndusInd Bank, RBL Bank, Ujjivan Small Finance Bank as they offer the highest interest rate of 6.50% on regular term deposits. For 5 year FD, India Post Office should be your top choice as its rate of interest is maximum at 6.70%.

Current 1 Year FD Rates

Latest one year FD rates range from 4.50% to 6.50%. IndusInd Bank, RBL Bank, Ujjivan Small Finance Bank have the highest interest rate of 6.50% for a one year fixed deposit. If you are looking to open a 1 year FD, do a comparison of top 5 banks with highest 1 year rates on FDs as on 11 May 2021.

Highest 1 Year FD Rates as on 11 May 2021

Banks 1 Year FD Rate
Ujjivan Small Finance Bank 6.50%
IndusInd Bank 6.50%
RBL Bank 6.50%
Yes Bank 6.25%
Jana Small Finance Bank 6.25%

Today’s FD Rate for 2 Years

Current 2 year FD rates range from 4.55% to 6.50%. IndusInd Bank, Jana Small Finance Bank, RBL Bank, Ujjivan Small Finance Bank, Yes Bank offers the highest interest rate of 6.50% for a 2 year fixed deposit.

Highest 2 Year FD Rates as on 11 May 2021

Banks 2 Year FD Rate
Jana Small Finance Bank 6.50%
IndusInd Bank 6.50%
RBL Bank 6.50%
Yes Bank 6.50%
Ujjivan Small Finance Bank 6.50%

Latest FD Rate for 3 Years

As of 11 May 2021, 3 year interest rate on fixed deposits ranges from 4.75% to 6.65%. Equitas Small Finance Bank has the best rate of 6.65% for a 3 years fixed deposit.

Highest 3 Year FD Rates as on 11 May 2021

Banks 3 Year FD Rate
Equitas Small Finance Bank 6.65%
Jana Small Finance Bank 6.50%
Yes Bank 6.50%
Ujjivan Small Finance Bank 6.05%
Karur Vysya Bank 5.65%

Best 5 Year FD Rates

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 11 May 2021

Banks 5 Year FD Rate
India Post Office 6.70%
Equitas Small Finance Bank 6.40%
Jana Small Finance Bank 6.00%
Ujjivan Small Finance Bank 5.80%
Axis Bank 5.75%

Fixed Deposit Interest Rates for Senior Citizens

Highest FD rate for Senior Citizens is currently at 7.50% offered by Yes Bank for 36 Months to 3 Years to 10 Years . Banks FD Interest offered to senior citizens is typically 25-75 basis points higher than corresponding rates on regular FDs other individuals. Senior citizens are required to submit their age proof to be eligible for higher rates on Senior Citizens FD

  • Age of a senior citizen should be 60 or more on the date of investment.
  • Tenure on senior citizens FD is between 7 days to 10 years in most of the banks.
  • Senior citizens FDs earn 2.50% to 7.50% higher interest compared to regular deposit rates.
  • Loans against FDs are available on senior citizen FD.
  • Penalties are applicable in case of premature withdrawal of FDs of senior citizens as applicable to other regular accounts.

Factors that affect FD Rates

Fixed Deposits are an important source of funds for banks which they lend to make profits. Bank FD interest rates vary by the amount deposited, tenure of deposit, type of depositor as well as 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 rate 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 2.50% to 7.50% 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.

FD Interest Rates Calculator

Using the FD calculator, you can find out the total interest you will earn at the end of 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 Select the Best Fixed Deposit?

If you want to invest in a bank fixed deposit, here are some tips that would help you to choose the best FD and get assured returns on your investments along with safety and stability.

Main Video

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:

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

Tax Savings Fixed Deposit Interest Rates

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 5.30%
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 5.30%
RBL Bank Tax Savings Fixed Deposits N.A 6.60%
Central Bank of India Tax Saving Deposit ₹ 100 5.10%
Syndicate Bank SyndTaxShield Deposit ₹ 100 5.50%
IDBI Bank Suvidha Tax Saving Fixed Deposit N.A 5.10%

Bank Fixed Deposit – Special Features

Any Indian resident, including minors & HUFs, can open a fixed deposit account to get higher returns than regular savings accounts. Below mentioned are some other benefits of a fixed deposit account.

  • FD offers a flexible tenure ranging from 7 days to 10 years. Investors can thus choose the investment tenure depending on the requirement of funds and goal of financial investment.
  • A Fixed Deposit scheme also offers flexibility in terms of the amount of investment. You can deposit as less as ₹ 100 in your FD accounts and also there is no cap on the maximum amount that you can invest.
  • Along with the regular FD scheme, you can also invest in a Flexi fixed deposit scheme. The Flexi deposit allows the depositor to link its fixed deposit account to a savings bank account and allows his surplus savings to move in and out of the linked FD account as per his funds' requirements.
  • To get tax benefits you can invest in a tax-saver FD. A tax-saver FD allows you to get tax benefits upto ₹ 1.50 Lakh on your investments.
  • With a sweep-in-facility of FD, you may also interlink multiple deposits to your Savings Bank Account to earn a higher rate of interest on your deposited money, which is generally higher than a regular savings account.

FAQs

What is the minimum amount for Fixed Deposit?

You can deposit a minimum amount of ₹ 1,000 in FD account but there is no upper cap on deposit amount.

Which is highest interest rate on fixed deposit?

The highest interest rate on fixed deposits in the market is offered by Equitas Small Finance Bank at 6.80% for regular FD and 7.30% for senior citizens.

Did Fixed Deposit Rates Increase?

No, banks and NBFCs have reduced the best interest rate on FD by 0% and now stands at 7.25%. The highest rate on FD is being offered by DCB Bank,Jana Small Finance Bank,AU Small Finance Bank. Earlier, the highest FD rate of upto 7.25% was offered by Jana Finance Bank, AU Small Finance, DCB.

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.

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.

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 which is higher than any of the regular deposit schemes offered by leading banks and NBFCs.

Is FD a good investment?

Choosing FD is a good decision if you are looking to earn a competitive rate of interest without taking any risk and have surplus money to invest for a relatively long period of time. It is one of the safest investment options available in the market.

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

You can open a fixed deposit account for minimum of 7 days in banks and for 1 year in NBFCs.

How much can be the maximum tenure for which I can open an account in FD?

The maximum tenure for FD in NBFCs is 5-7 years, whereas banks provide maximum tenure of 10 years for fixed deposit.

When do I become accountable for tax on FD?

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.

Does investment made into term deposits provide any benefits?

Yes, investing in term deposits provides many benefits, including a fixed rate return on your FD investment, flexibility to withdraw the FD at any time before its maturity. Besides, an individual can also avail loans up to the amount invested in the FD along with the overdraft facility from the bank against the FDs.

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 rate of inflation, liquidity condition, and demand and supply conditions.

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.

Is Interest on FD taxable?

Yes, Interest earned from FD investments is taxable. Banks will deduct TDS if interest earn exceeds ₹ 10,000

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.


Our News - May 2021
  • 2021-04-30 : PNB Housing Finance posted ₹127-cr net profit in Q4
    PNB Housing Finance reported a consolidated net profit of Rs 127 crore in Q4 backed by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with deposits which include fixed and recurring deposits. Total income during January-March was down at Rs 1,834 crore from Rs 1,952 crore in the same period of 2019-20. Interest income dropped over 7% at Rs 1,670 crore during the quarter as against Rs 1,803 crore a year earlier.
  • 2021-04-30 : AU Small Finance Bank Q4 net profit up 38 per cent at Rs 169 cr
    AU Small Finance Bank reported a 38% hike in its net profit at Rs 168.98 crore for the last quarter of the fiscal ended March 2021. The profit was boosted by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with deposits which include fixed and recurring deposits. Total income during Q4 FY21 rose to Rs 1,569 crore as against Rs 1,366.60 crore. Interest income moved up to Rs 1,292.37 crore during the reported quarter from Rs 1,183.45 crore in the year-ago period.
  • 2021-04-30 : Bajaj Finance Q4 profit hiked by 42% to Rs 1,347
    Bajaj Finance reported a 42% year-on-year (YoY) increase in the March quarter profit at Rs 1,347 crore on April 27, supported by a decline in the loan loss provisions and growth in deposits which includes fixed and recurring deposits. Profit in the same quarter of the previous year was Rs 948.1 crore.
  • 2021-04-28 : Karnataka Bank targetting a growth of 12% in FY22
    Karnataka Bank stated that it is targeting to grow its business at 12% to over Rs 1.42 lakh crore in the current fiscal year. The Bank is planning to gradually increase the share of the retail loan which includes home, personal, LAP, two-wheeler, car, education and doctor loan.
  • 2021-04-27 : Bank credit increased by 5.33%; deposit rose 10.94%
    Reserve Bank of India reported that Bank credit which includes retail loans like home, LAP, personal, two-wheeler, car, education and doctor loan along with business and mudra loan grew by 5.33% to Rs 108.89 lakh crore. Further deposits which include fixed and recurring deposits rose 10.94% to Rs 152.15 lakh crore.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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