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.

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.BankInterest rates (%)Tenure plan
1Bandhan Bank8.00600 days (1 yr 7 months 23 days)
2IndusInd Bank7.752 yrs 6 months to below 2 yrs 9 months
3Yes Bank7.7518 Month to less than 36 Months
4DCB Bank7.60More than 60 months to 120 months
5Ratnakar Bank (RBL Bank)7.0024 months to less than 36 months
6IDFC Bank7.003 yrs 1 day to 5 yrs
7ICICI Bank7.003 yrs 1 day to 5 yrs
8Axis Bank7.005 yrs to 10 yrs
9HDFC Bank7.003 yrs 1 day to 5 yrs
10Federal Bank6.602222 days (6 yr 1 month)
11Karur Vyasa Bank6.255 yrs and up to 6 yrs
12Kotak Mahindra Bank6.205 yrs and above up to and inclusive of 10 yrs
13South Indian Bank6.005 yrs to up to and including 10 yrs
14Catholic Syrian Bank6.00Above 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.BankInterest rate (%)Tenure
1Canara Bank – Non- Callable7.102 yrs and above to less than 3 yrs
2Canara Bank – Callable6.852 yrs and above to less than 3 yrs
3Bank of Baroda6.751 yr
4Bank of Maharashtra6.75400 days (1 yr 1 month 4 days)
5Union Bank of India6.70Above 5 yrs to 10 yrs
6State Bank of India (SBI)6.505 yrs and up to 10 yrs
7Punjab National Bank6.50Above 5 yrs to 10 yrs
8Indian Bank6.255 yrs
9IDBI Bank6.25Above 5 yrs to 7 yrs
10Central Bank of India6.255 yrs and above up to 10 yrs
11UCO Bank6.20Above 3 yrs to less than 5 yrs
12Bank of India6.001 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.BankTypeInterest rate (%)Tenure
1Deutsche BankForeign Banks7.255 yrs
2IndusInd BankIndian Private Sector Banks7.255 yrs
3Ratnakar Bank (RBL Bank)Indian Private Sector Banks760 months
4Shamrao Vithal Co-operative BankCooperative Banks75 yrs
5ICICI BankIndian Private Sector Banks75 yrs
6Bharat Co-operative BankCooperative Banks6.755 yrs
7Punjab National BankPublic Sector / Nationalized Banks6.55 yrs to 10 yrs
8Janakalyan Sahakari BankIndian Private Sector Banks5.7560 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.BankInterest rateTenure
1Unity Small Finance Bank91001 Days (2 yrs, 8 months, 28 days)
2ESAF Small Finance Bank8.52 yrs to less than 3 yrs
3Suryoday Small Finance Bank8.01Above 1 yr 6 months to 2 yrs
4Ujjivan Small Finance Bank813 Months 1 day to 559 days
5Equitas Small Finance Bank7.7518 months 1 day to 2 yrs
6North East Small Finance Bank7.5777 days (1 yr 1 day to 2 yrs 1 month 15 days)
7AU Small Finance Bank7.518 Months 1 Day to 24 Months
8Jana Small Finance Bank7.251 yr to 499 Days
9Capital Small Finance Bank7.151 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.BankInterest rateTenure
1HSBC7.5732 days to less than 36 months (2 yrs 2 days to less than 3 yrs)
2Deutsche Bank7.255 yrs
3Citi Bank*73 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.BankTypeInterest rate (%)Tenure
1Bandhan BankIndian Private Sector Bank8.5600 days (1 yr 7 months 23 days)
2IndusInd BankIndian Private Sector Bank8.252 years 6 Months to below 2 years 9 Months
3Yes BankIndian Private Sector Bank8.2518 Month to less than 36 Months
4DCB BankIndian Private Sector Bank8.1More than 60 months to 120 months
5ICICI BankIndian Private Sector Banks7.53 years 1 day to 5 years
6Ratnakar Bank (RBL Bank)Indian Private Sector Bank7.524 months to less than 36 months
7IDFC BankIndian Private Sector Bank7.53 yrs, 1 day to 5 yrs
8Bharat Co-operative BankCooperative Bank7.25Above 5 yrs
9Deutsche BankForeign Bank7.255 yrs
10Federal BankIndian Private Sector Bank7.252222 Days (6 yr 1 month)
11IDBI BankPublic Sector / Nationalized Bank6.75Above 5 yrs to 7 yrs
12Thane Janata Sahakari BankCooperative Bank6.75*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).

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