FD Interest Rates of All Banks

Fixed Deposit Rates

Banks FD Rates Tenure
SBI 5.75% - 6.85% 7 days to 10 years
HDFC Bank 3.50% - 7.25% 7 days to 10 years
ICICI Bank 4.00% - 7.00% 7 days to 10 years
Axis Bank 3.50% - 7.10% 7 days to 10 years
IDFC Bank 4.00% - 8.25% 7 days to 10 years
PNB 5.70% - 6.75% 7 days to 10 years
  • HDFC Bank, SBI, PNB, Axis Bank, Dena Bank have increased their FD interest rates in August 2018. Click here to know more about fixed deposit rates and schemes.
  • Tax exempted interest income on deposits with banks has been increased from Rs. 10,000 to Rs. 50,000. Further, TDS will not be required to be deducted under section 194A and it has been extended to all FD and RD schemes.
FD Maturity Calculator
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Fixed Deposit Interest Rates in India, FD Rates 2018, Senior Citizens FD Rates

Bank FD Rate of Interest Senior Citizen FD Rates
SBI Fixed Deposit 5.75% - 6.85% 6.25% - 7.35%
HDFC Bank Fixed Deposit 3.50% - 7.25% 4.00% - 7.75%
ICICI Bank Fixed Deposit 4.00% - 7.00% 4.50% - 7.50%
Axis Bank 3.50% - 7.10% 3.50% - 7.75%
Kotak Bank 3.50% - 7.30% 4.00% - 7.80%
IDFC Bank 4.00% - 8.25% 4.50% - 8.75%
Bank of Baroda 4.25% - 6.70% 4.75% - 7.20%
Citibank 3.00% - 7.00% 3.50% - 7.50%
IDBI Bank 5.75% - 6.75% 5.75% - 7.25%
Indian Bank 4.50% - 6.75% 5.00% - 7.25%
Indian Overseas Bank 4.50% - 6.80% 5.00% - 7.30%
OBC 5.75% - 6.75% -
PNB 5.70% - 6.75% 6.20% - 7.25%
HDFC 7.40% - 7.40% 7.65% - 7.65%
PNB Housing Finance 7.70% - 8.20% 7.95% - 8.45%
Allahabad Bank 4.00% - 6.60% -
Andhra Bank 4.00% - 6.60% 4.50% - 7.10%
Bank of India 5.25% - 6.70% 5.25% - 7.20%
Bank of Maharashtra 4.25% - 6.60% 4.25% - 7.10%
Canara Bank 5.75% - 7.00% 6.25% - 7.50%
Central Bank of India 4.75% - 6.60% 5.25% - 7.00%
Dena Bank 4.00% - 6.70% 4.50% - 7.20%
Punjab and Sind Bank 4.00% - 6.75% 4.00% - 7.25%
UCO Bank 4.50% - 6.60% -
Union Bank of India 5.00% - 6.75% 5.50% - 7.25%
Vijaya Bank 5.00% - 6.80% 5.50% - 7.30%
United Bank of India 4.00% - 6.25% 4.00% - 6.50%
Federal Bank 3.50% - 7.30% 4.00% - 7.80%
Bandhan Bank 3.50% - 7.40% 4.25% - 8.15%
HSBC Bank 3.15% - 7.00% 3.65% - 7.50%
South Indian Bank 4.00% - 7.40% 4.50% - 7.90%
IndusInd Bank 3.50% - 7.65% 4.00% - 8.15%
DCB Bank 4.00% - 7.75% 4.50% - 8.75%
Karur Vysya Bank 5.00% - 7.00% 5.00% - 7.50%
DHFL 8.00% - 8.75% 8.40% - 9.15%
LIC Housing Finance 7.30% - 7.45% 7.55% - 7.70%
Syndicate Bank 4.75% - 6.80% 5.25% - 7.30%
DBS Bank 4.00% - 7.50% 4.00% - 7.50%
Karnataka Bank 3.50% - 7.30% 4.00% - 7.80%
Dhan Laxmi Bank 4.00% - 6.65% 4.00% - 7.15%
Lakshmi Vilas Bank 4.50% - 7.50% 4.50% - 8.10%
RBL Bank 5.00% - 7.75% 5.50% - 8.25%
Standard Chartered Bank 4.25% - 7.40% 5.00% - 7.90%
Corporation Bank 4.50% - 6.80% 5.00% - 7.30%
Jammu And Kashmir Bank 5.00% - 7.00% 5.50% - 7.50%
Yes Bank 5.00% - 7.10% 5.50% - 7.60%

Based on a comparison of FD rates of all banks, IDFC Bank offers the highest FD rate of 8.25% for deposits with a tenure of 3 years 1 day to 10 years. FD rates of banks are determined by changes in RBI monetary policy such as repo rate, base rate etc, internal liquidity position of banks, economic conditions and the level of credit demand. FD interest rates of different banks in India vary by deposit amount, deposit tenure and type of depositor.
If you compare fixed deposit rates of NBFCs and HFCs in the table above, DHFL offers the best FD rate of 8.75% for deposits with a tenure of 40 months. FD rates of NBFCs and HFCs are higher than the bank FD rates which are risk free deposits. The risk on FDs of NBFCs and HFCs correspond to the credit ratings assigned to these deposit schemes.

Best FD rates in India

FD Rates Highest FD Rate Banks with highest FD rate
1 year FD 7.75% RBL Bank
3 year FD 7.10% Kotak Bank
5 year FD 7.50% DBS Bank

As the bank FD rates in 2018, top bank for 1 year FD is RBL Bank as it offers highest interest rate of 7.75% on regular term deposits. If you want to open a 3 year FD, Kotak Bank is the best bank as it offers a higher rate of 7.10% on 3 year Fixed Deposits compared to other banks. For 5 year FD, DBS Bank should be your top choice as it’s rate of interest is maximum at 7.50%.

Bank Interest Rates 2018

Bank FD is a risk free investment and best FD rate of 8.75% offers moderate returns enough to cover inflation rate. As a depositor, you need to be careful before choosing FDs of non banks, as unlike bank FDs, these FDs carry market and credit risk. The level of risk with non bank FDs is reflected in the level of credit ratings assigned to the FDs of NBFCs and HFCs.
Bank FDs being risk free, are not required to get a credit ratings done and also offer slightly lower interest rates than that of FDs of non banks.

Rate of Interest on bank FDs vary by the amount of deposits, tenure of deposits and type of depositor.

  • Deposit Amount: Banks offer lower interest rate on bulk deposits of more than Rs 1 crore and high interest rate on deposits of less than Rs 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 7.75% and highest FD rate on longest tenure FD of 10 years is 8.25%
  • Depositor Type: All banks in India offer higher interest on senior citizens FDs. Currently, the interest rate on senior citizens FDs ranges from 3.50% to 9.15% depending on the deposit amount and deposit tenure.

Bank Fixed Deposit Scheme

A fixed deposit (FD) is a type of deposit account provided by banks for a fixed tenure at a fixed rate of interest. In this scheme, the depositor keeps a fixed amount of money in an account known as FD account. The money is deposited only once at the time of account opening. At the end of the tenure, the interest amount is calculated on the principal amount and the total sum including interest is paid back to the depositor cumulatively. Fixed account earn higher interest rates than a regular savings bank account.
Fixed Deposits are also known as ‘term deposits’ or ‘time deposits’. If you wish to deposit additional amount as fixed deposit, you need to open another FD account. Term deposits are considered safest investment option compared to other savings instruments. The duration of a fixed deposit may vary from as short as 1 day to 10 years. The rate of interest on Fixed Deposits is based on the tenure of fixed deposit and bank interest rates policies. Key features are:

  • Can be opened by all residents, including minors and HUFs.
  • Allows choosing 2 nominees in application form eligible to receive the FD amount after the death of the holder by submitting a valid death proof.
  • Does not allow to withdraw deposit amount before maturity. Hence, encourages a depositor to save. Premature withdrawals from FD is allowed in emergencies by paying penalty.
  • Banks also offer Sweep-in facility on term deposits which allows the depositor to interlink their savings bank account to fixed deposit account. This unique facility on FD facilitates the automatic transfer of surplus funds from savings account to FD account thus allowing you to earn FD rates on your savings with an option to break the FD anytime and use the amount for your expenses.
  • You can also avail loans on your fixed deposits to meet any financial emergency. In loan against FD, your deposit is the security for the loan. Depending upon the bank, you would get a loan on your FD up to the extent of 75-95% of the FD amount which varies from one lender to another. Rate of interest on FD loans are 1%-1.5% higher than your FD rate.

Fixed Deposit Interest Rates for Senior Citizens

Interest offered on senior citizen FDs is slightly 0.25% to 0.75% higher than that offered to other individuals. Senior citizens are required to submit their age proof to avail the benefits of senior citizen FDs. FD Interest Rates for senior citizens are higher than regular FD rates and range from 3.50% to 9.15%.

  • Age of senior citizen should be 60 or more on the date of investment.
  • Tenure on senior citizens FD is between 1 day to 10 years in most of the banks.
  • Senior citizens FDs earn 0.25% to 0.75% 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.
Timely Closure

Timely closure of a FD means closing your FD at the time of its maturity date. While closing your FD upon its original maturity, the bank will pay you back the principal amount along with the interest on your deposit.

Breaking of FD account

Breaking a fixed deposit account means withdrawing the entire sum of money before its maturity. This is allowed from time to time and the withdrawal rules may vary from one bank to another. Banks usually levy a penalty at the time of breaking your FD account or pre closing it before attaining the original maturity and it pays you back the principal and interest either at a lower interest rate or after deducting a penalty on your FD. However, some banks including IDFC Bank, Yes Bank and Bank of Maharashtra waive off interest penalty on FD if the liquidation is due to some emergency.

Part withdrawal

Partial withdrawal allows you to withdraw a certain amount of money from your fixed deposit account either to fund emergency or to take advantage of higher rate of interest which is offered by some other bank at the same time. It is generally allowed in units of Rs. 1,000 and a penalty of 1% is levied by the banks and the remaining balance amount which is lying in your fixed deposit account continues to earn the original rate of interest. Most of the banks allow the facility of part withdrawal with some penalty and there are few banks which do not allow to withdraw any amount during the deposit tenure.

FD Interest Rates Calculator

The formula for fixed deposit interest calculation is based on the interest rate and frequency of compounding

The formula used for calculating interest on fixed deposit 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

Tips to choose best bank FD rate scheme
  • Carefully evaluate and compare factors such as maturity, interest, penalty for breaking FD before maturity before choosing the fixed deposit and FD bank.
  • Also, understand the broad macro-economic factors and expected trends in interest rates. If you expect the interest rates to go up in the near future, opt for a shorter tenure FD to keep your options open of investing when interest rates go up. If you expect the interest rates to go down in the near future, you can decide to opt for a longer tenure FD with a high interest rate.
  • Before parking your surplus amount into a fixed deposit account, depositors should also check and compare the tenure wise interest rate offered on FD. In some cases, banks offer a higher rate of interest on FD held for a shorter tenure than on the FD kept for a longer time period. Similarly, it is not essential that higher interest rates correspond with longer tenure. Banks may offer higher interest rate on some select tenure to manage their internal liquidity position.
  • Last, but not the least. Carefully plan all your expenses and create a FD only for an amount that you believe you will not require for a minimum period of time. Suppose, if you have surplus money Rs. 100,000 but you have a home loan repayment of Rs. 50,000 scheduled after two months. In this case, it is advisable that you deposit Rs. 50,000 in a short-term FD of less than 2 months and the remaining Rs. 50,000 in to a long tenure FD.
Income tax on Fixed Deposit interest

Interest on FD is taxed at marginal tax rate applicable to the depositor. Hence, for a person in top most 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 the fact 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 2015. 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 Still, the depositor must pay tax on the accrued interest in the year 2015-16 in the assessment year 2016-17.
  • 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 10.3% tax deduction at source (TDS). Remember to quote your IT PAN when opening the term 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.
FD Schemes of banks

Regular FD

These deposits are made for a fixed time period with the bank and it allows you to earn a high rate of interest on your deposit amount depending on the tenure of FD. The FD interest rate is as offered by the bank at the time of deposit.

Tax saving FD

This is a special type of deposit which allows the depositor to claim deduction on interest earned of FD under Section 80C of Income Tax Act. The deduction limit is Rs. 1,50,000. Key Features of Tax Savings FD are:

  • Money deposited in this FD has a lock-in-period of a minimum of 5 years
  • Premature withdrawal or partial withdrawal is not allowed
  • Loans against FDs are not available
  • Interest earned on tax savings FD are exempted under Section 80 C of Income Tax Act up to a maximum limit of Rs. 1.5 lakh

Some of the popular tax saving FDs along with their interest rates offered by banks are as follows:

Bank Tax Saving FD Minimum deposit Tax Saving
SBI SBI Tax Savings Scheme Rs. 1,000 6.85%
HDFC Bank 5 Year Tax Saving Fixed Deposit Rs. 100 7.25%
Axis Bank Tax Saver Fixed Deposit Rs. 100 7.10%
Kotak Bank Tax Saving Fixed Deposit Rs. 100 7.30%
ICICI Bank Tax Saving Fixed Deposit Rs. 10,000 7.00%
Citibank Tax Saver Deposits Rs. 1,000 7.00%
Bank of Baroda Baroda Tax Savings Term Deposit N.A 6.70%
Corporation Bank Corp Tax Saver Plus Deposit Scheme Rs. 100 6.80%
PNB PNB Tax Saver Fixed Deposit Scheme Rs. 100 6.75%
RBL Bank Tax Savings Fixed Deposits N.A 7.75%
N.A %
N.A %
Central Bank of India Cent Tax Saving Deposit Rs. 100 6.60%
Syndicate Bank SyndTaxShield Rs. 100 6.80%
IDBI Bank Suvidha Tax Saving Fixed Deposit N.A 6.75%
Vijaya Bank Vijaya Tax Savings Scheme Rs. 100 6.80%

Flexi FD

A Flexi deposit allows the depositor to link its fixed deposit account with a savings bank account. Your deposited money moves in between the fixed deposit and savings account. It is also popularly known as Sweep in- Sweep out fixed deposit. The facility allows you to earn higher interest rates on surplus amount in your savings account. Key Features of Sweep-In facility account are:

  • A sweep-in facility facilitates automatic transfer of surplus funds from your savings deposit account into your fixed deposit account
  • This facility allows you to earn a higher rate of interest on your deposited money which is generally higher than a regular savings account, while it varies from bank to bank, but in most of the cases you earn a 1 year FD rate when your money is swept from Savings Account to FD Account. Currently, 1 year FD rates are 6.00% to 7.75%
  • With a sweep in facility you may also interlink multiple deposits to your Savings Bank Account
  • You can withdraw the amount from your fixed deposit in case of any emergency without breaking complete FD or levying any penalty
  • Banks do not levy any additional fees on this facility unlike overdraft facility

Frequently Asked Questions on Term Deposit

What is the minimum amount that can be deposited into a FD account?

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

What are the documents required for opening FD?

The following documents are required for opening a Bank FD Account

  • Identity proof
  • Address proof
  • Signature proof
  • Age proof (for senior citizens)
Is the rate of interest on FD for senior citizens higher than regular fixed deposit?

Yes, senior citizens get higher rates between 0.25 and 0.75 per cent interest rates on their FD.

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

You can open a fixed deposit account for minimum 1 day and maximum up to 10 years although it may vary from bank to bank.

When do I become accountable for tax?

As per Income Tax Act, 1961 under section 194A when the interest earned on FD in a financial year exceeds Rs. 10,000, TDS is applicable on the credited interest. A depositor may also furnish Form 15G/15H to avail exemption from paying tax on his interest income.

Who are eligible to invest in FD schemes?

The following are eligible to invest in FD schemes- Resident Individuals, HUFs, NRIs, Firms, and Charitable Trusts while others can apply for the scheme by submitting an offline application.

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 this, 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.

Can I redeem my fixed deposits before the original term?

Yes, an FD can be closed before its original term. If the FD is closed before completing the original term of the deposit, the interest will be paid as per the interest rate applicable on the date of deposit for the period it has remained with the bank. However, some banks may also levy a penalty prescribed by them on the date of deposit.

When can I renew my FD?

The person may renew his/her FD on maturity by submitting a duly filled FD Application Form 15 days prior to the date of maturity along with the old FD receipt with revenue stamp of requisite value on it. However, your FD renewal will be subjected to the terms and conditions of the FD scheme as applicable on the maturity date of the old deposit.

Can I take loan against fixed deposits?

Yes, many lenders provide the facility to take loans against fixed deposits. The bank generally provides loan on your FD up to the extent of 75-95% depending upon the lender and loan tenure. Usually, loan against FDs are quick and cheap loans available to meet financial emergencies.

Can I opt for an auto renewal facility while opening a FD?

Yes, you can opt for an auto renewal facility at the time of opening the FD account prior to its maturity. Auto renewal facility allows your FD to get renewed automatically for the same period as the original deposit. However, under the auto renewal option the time deposit receipt is with the bank’s custody and Memorandum of Deposit (MOD) is issued in lieu of fixed deposit receipt.

Why does Fixed Deposit rate fluctuate?

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

Our News - Aug 2018
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