Last Updated on May 4, 2023 by Anjali Chourasiya
Fixed Deposits (FD) – One of the safest and oldest investment options when it comes to saving money. They are known to offer assured returns and capital appreciation and can be considered as an additional source of income. But, there are various fixed deposits offered by several financial institutions. Let’s look at the top fixed deposit interest rates offered by various banks and NBFCs, along with tax-saving fixed deposits.
Table of Contents
Overview of fixed deposits
| What is a fixed deposit? | An investment instrument where a large sum of money is deposited for a fixed tenure at a pre-determined interest rate. |
| Who offers FDs?? | All banks and NBFCs |
| Types of FDs | – Corporate – Standard – Senior citizen – Tax-saving – Cumulative – Non-cumulative – Flexi-fixed |
| Who can apply? | One should be an Indian and over 18 yrs of age. They can be – – Residents – Hindu Undivided Families – Sole Proprietorship Firms – Partnership Firms – Limited Companies – Trust Accounts |
| Risk | Low risk as it is governed by RBI |
Highest fixed deposit interest rates by top Indian private sector banks
| S. No. | Bank | Interest rates (%) | Tenure plan |
| 1 | Bandhan Bank | 8.00 | 600 days (1 yr 7 months 23 days) |
| 2 | IndusInd Bank | 7.75 | 2 yrs 6 months to below 2 yrs 9 months |
| 3 | Yes Bank | 7.75 | 18 Month to less than 36 Months |
| 4 | DCB Bank | 7.60 | More than 60 months to 120 months |
| 5 | Ratnakar Bank (RBL Bank) | 7.00 | 24 months to less than 36 months |
| 6 | IDFC Bank | 7.00 | 3 yrs 1 day to 5 yrs |
| 7 | ICICI Bank | 7.00 | 3 yrs 1 day to 5 yrs |
| 8 | Axis Bank | 7.00 | 5 yrs to 10 yrs |
| 9 | HDFC Bank | 7.00 | 3 yrs 1 day to 5 yrs |
| 10 | Federal Bank | 6.60 | 2222 days (6 yr 1 month) |
| 11 | Karur Vyasa Bank | 6.25 | 5 yrs and up to 6 yrs |
| 12 | Kotak Mahindra Bank | 6.20 | 5 yrs and above up to and inclusive of 10 yrs |
| 13 | South Indian Bank | 6.00 | 5 yrs to up to and including 10 yrs |
| 14 | Catholic Syrian Bank | 6.00 | Above 5 yrs to 10 yrs |
Note: The list above is for investments less than Rs. 2 cr. and is dated 4th May 2023. It is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.
Highest fixed deposit interest rates by top Indian public sector/nationalised banks
| S. No. | Bank | Interest rate (%) | Tenure |
| 1 | Canara Bank – Non- Callable | 7.10 | 2 yrs and above to less than 3 yrs |
| 2 | Canara Bank – Callable | 6.85 | 2 yrs and above to less than 3 yrs |
| 3 | Bank of Baroda | 6.75 | 1 yr |
| 4 | Bank of Maharashtra | 6.75 | 400 days (1 yr 1 month 4 days) |
| 5 | Union Bank of India | 6.70 | Above 5 yrs to 10 yrs |
| 6 | State Bank of India (SBI) | 6.50 | 5 yrs and up to 10 yrs |
| 7 | Punjab National Bank | 6.50 | Above 5 yrs to 10 yrs |
| 8 | Indian Bank | 6.25 | 5 yrs |
| 9 | IDBI Bank | 6.25 | Above 5 yrs to 7 yrs |
| 10 | Central Bank of India | 6.25 | 5 yrs and above up to 10 yrs |
| 11 | UCO Bank | 6.20 | Above 3 yrs to less than 5 yrs |
| 12 | Bank of India | 6.00 | 1 yr to less than 2 yrs |
Note: The list above is for investments less than Rs. 2 cr. and is dated 4th May 2023. It is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.
Tax saver fixed deposit interest rates
| S. No. | Bank | Type | Interest rate (%) | Tenure |
| 1 | Deutsche Bank | Foreign Banks | 7.25 | 5 yrs |
| 2 | IndusInd Bank | Indian Private Sector Banks | 7.25 | 5 yrs |
| 3 | Ratnakar Bank (RBL Bank) | Indian Private Sector Banks | 7 | 60 months |
| 4 | Shamrao Vithal Co-operative Bank | Cooperative Banks | 7 | 5 yrs |
| 5 | ICICI Bank | Indian Private Sector Banks | 7 | 5 yrs |
| 6 | Bharat Co-operative Bank | Cooperative Banks | 6.75 | 5 yrs |
| 7 | Punjab National Bank | Public Sector / Nationalized Banks | 6.5 | 5 yrs to 10 yrs |
| 8 | Janakalyan Sahakari Bank | Indian Private Sector Banks | 5.75 | 60 months |
Note: The data is dated 4th May 2023. It is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.
A tax-saving fixed deposit helps you get tax deductions under Section 80C of the Income Tax Act, 1961. The returns are assured in tax-saving fixed deposits upon maturity. You can claim the tax-deductions of up to Rs. 1.5 lakh.
Top small finance banks offering the highest fixed deposit interest rates
| S. No. | Bank | Interest rate | Tenure |
| 1 | Unity Small Finance Bank | 9 | 1001 Days (2 yrs, 8 months, 28 days) |
| 2 | ESAF Small Finance Bank | 8.5 | 2 yrs to less than 3 yrs |
| 3 | Suryoday Small Finance Bank | 8.01 | Above 1 yr 6 months to 2 yrs |
| 4 | Ujjivan Small Finance Bank | 8 | 13 Months 1 day to 559 days |
| 5 | Equitas Small Finance Bank | 7.75 | 18 months 1 day to 2 yrs |
| 6 | North East Small Finance Bank | 7.5 | 777 days (1 yr 1 day to 2 yrs 1 month 15 days) |
| 7 | AU Small Finance Bank | 7.5 | 18 Months 1 Day to 24 Months |
| 8 | Jana Small Finance Bank | 7.25 | 1 yr to 499 Days |
| 9 | Capital Small Finance Bank | 7.15 | 1 yr to less than 5 yrs |
Note: The data is of 4th May 2023 and for deposits up to Rs. 2 cr. The data is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.
Top foreign banks FD interest rates
| S. No. | Bank | Interest rate | Tenure |
| 1 | HSBC | 7.5 | 732 days to less than 36 months (2 yrs 2 days to less than 3 yrs) |
| 2 | Deutsche Bank | 7.25 | 5 yrs |
| 3 | Citi Bank* | 7 | 3 yrs to less than 5 yrs |
*Citi India has transferred ownership of its consumer business to Axis Bank, with effect from 1st March 2023.
Note: The data is from 4th May 2023 and for deposits up to Rs. 2 cr. It is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.
Best senior citizen fixed deposit interest rates
Some leading banks in India offer special interest rates on fixed deposits for individuals over the age of 60. These fixed deposits offer senior citizens a wide range of benefits and help them get a steady and reliable income stream in their post-retirement years.
| S. No. | Bank | Type | Interest rate (%) | Tenure |
| 1 | Bandhan Bank | Indian Private Sector Bank | 8.5 | 600 days (1 yr 7 months 23 days) |
| 2 | IndusInd Bank | Indian Private Sector Bank | 8.25 | 2 years 6 Months to below 2 years 9 Months |
| 3 | Yes Bank | Indian Private Sector Bank | 8.25 | 18 Month to less than 36 Months |
| 4 | DCB Bank | Indian Private Sector Bank | 8.1 | More than 60 months to 120 months |
| 5 | ICICI Bank | Indian Private Sector Banks | 7.5 | 3 years 1 day to 5 years |
| 6 | Ratnakar Bank (RBL Bank) | Indian Private Sector Bank | 7.5 | 24 months to less than 36 months |
| 7 | IDFC Bank | Indian Private Sector Bank | 7.5 | 3 yrs, 1 day to 5 yrs |
| 8 | Bharat Co-operative Bank | Cooperative Bank | 7.25 | Above 5 yrs |
| 9 | Deutsche Bank | Foreign Bank | 7.25 | 5 yrs |
| 10 | Federal Bank | Indian Private Sector Bank | 7.25 | 2222 Days (6 yr 1 month) |
| 11 | IDBI Bank | Public Sector / Nationalized Bank | 6.75 | Above 5 yrs to 7 yrs |
| 12 | Thane Janata Sahakari Bank | Cooperative Bank | 6.75* | Above 60 months to 120 months |
*For deposits less than Rs. 15 lakh.
Note: The data is dated 4th May 2023, and all the fixed deposits mentioned are tax-saving and available for investments up to Rs. 1 lakh. The data is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.
To conclude
A fixed deposit is one of the best choices if you have a large amount of money readily available to invest. You can also get a loan against your fixed deposits if you have a low credit score if you do not meet the income eligibility criteria, or if you have no other assets to apply for a secured loan. However, before investing in any fixed deposit, it is worthwhile to consult your financial advisor and invest according to your financial plan.
FAQs
Can NRIs invest in fixed deposits in India?
Yes, NRIs can open fixed deposits in India. The two available fixed deposits they can open are NRE (Non-resident External) and NRO (Non-resident Ordinary).
Is premature withdrawal allowed for fixed deposits?
Premature withdrawals are subject to banks’ norms. Generally, there is a penalty on the interest rate, which varies from bank to bank.
Which bank has the highest interest rate for fixed deposits?
Unity Small Finance Bank offers the highest interest rate of 9% for fixed deposits with a tenure of 1001 Days (2 yrs, 8 months, 28 days).
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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