Last Updated on Nov 21, 2022 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

Top Indian private sector banks offering the highest fixed deposit interest rates

S. No.BankInterest rates (%)Tenure
1Bandhan Bank7.50600 days (1 yr 7 months 23 days)
2Ratnakar Bank (RBL Bank)7.2524 months to less than 36 months
3DCB Bank7.00More than 60 months to 120 months
4IndusInd Bank6.752 yrs 6 months to below 2 yrs 9 months
5Yes Bank6.753 yrs to 10 yrs
6IDFC Bank 6.503 yrs
7ICICI Bank6.505 yrs 1 day up to 10 yrs
8Federal Bank6.502222 days (6 yr 1 month)
9Axis Bank6.505 yrs to 10 yrs
10Lakshmi Vilas Bank6.505 yrs to 10 yrs
11Karur Vyasa Bank6.255 yrs and up to 6 yrs
12HDFC Bank6.255 yrs 1 day to 10 yrs
13Kotak Mahindra Bank6.205 yrs and above up to and inclusive of 10 yrs
14South Indian Bank6.005 yrs to up to and including 10 yrs
15Catholic Syrian Bank6.00Above 5 yrs to 10 yrs

Note: The list above is for investments less than Rs. 2 cr. and is dated 21st November 2022. It is taken from the respective bank’s website, and the rates are subject to change at the discretion of the bank.

Top Indian public sector/nationalised banks offering the highest fixed deposit interest rates

S. No.BankInterest rate (%)Tenure
1Canara Bank7.00666 Days (1 yr 9 months 28 days)
2Union Bank of India6.70Above 5 yrs to 10 yrs
3Bank of Baroda6.501 yr
4Indian Bank 6.405 yrs
5Bank of Maharashtra6.30400 days (1 yr 1 month 4 days)
6IDBI Bank6.10Above 5 yrs to 7 yrs
7State Bank of India (SBI)6.105 yrs and up to 10 yrs 
8Punjab National Bank6.10Above 5 yrs to 10 yrs 
9Bank of India5.751 yr to less than 2 yrs 
10Central Bank of India5.755 yrs & above up to 10 yrs 
11UCO Bank5.60Above 3 yrs to less than 5 yrs

Note: The data is dated 21st November 2022. 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 rateTenure
1Ratnakar Bank (RBL Bank)Indian Private Sector Banks7.2560 months to 120 months
2Deutsche BankForeign Banks7.00 5 yrs
3Yes BankIndian Private Sector Banks7.10*5 yrs
4Shamrao Vithal Co-operative BankCooperative Banks6.755 yrs
5IndusInd BankIndian Private Sector Banks 6.755 yrs
6ICICI BankIndian Private Sector Banks6.605 yrs
7Bharat Co-operative Bank Cooperative Banks6.505 yrs
8Punjab National BankPublic Sector / Nationalized Banks6.105 yrs to 10 yrs
9Federal BankIndian Private Sector Banks6.005 yrs
10Janakalyan Sahakari BankIndian Private Sector Banks5.75More than 60 months to up to 120 months

* The data is from BankBazaar 

Note: The data is dated 21st November 2022. 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.

Highest fixed deposit interest rates for small finance bank

S. No.BankInterest rateTenure
1Ujjivan Small Finance Bank7.7012 months 1 day to 559 days
2Suryoday Small Finance Bank7.51Above 1 yr 6 months to 2 yrs
3Unity Small Finance Bank7.4018 months to 2 yrs
4ESAF Small Finance Bank 7.252 yrs to 2 yrs 8 months 25 days
5Jana Small Finance Bank 7.01 yr
6North East Small Finance Bank 7.0366 – 776 days (1 yr 1 day to 2 yrs 1 month 15 days)
7Equitas Small Finance Bank6.9518 months 1 day to 2 yrs 
8AU Small Finance Bank6.9518 Months 1 Day to 24 Months
9Capital Small Finance Bank 6.651 yr to less than 5 yrs

Note: The data is of 21st November 2022 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 rateTenureInvestment 
1Deutsche Bank8.255 yrsUp to Rs. 1 lakh
2HSBC6.50732 days to less than 36 months (2 yrs 2 days to less than 3 yrs)Less than Rs. 2 cr.
3Citi Bank3.50732 – 1095 Days (2 yrs, 2 days to 3 yrs)Up to Rs. 1 lakh
Source: MoneyControl

Note: The data is from 21st November 2022. 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 a wide range of benefits to senior citizens and help in getting a steady and reliable income stream in their post-retirement years.

S. No.BankTypeInterest rateTenure
1Bandhan BankIndian Private Sector Bank8.00600 days (1 yr 7 months 23 days)
2IndusInd BankIndian Private Sector Bank7.505 yrs
3Yes BankIndian Private Sector Bank7.505 yrs
4Bharat Co-operative BankCooperative Bank7.255 yrs
5Deutsche BankForeign Bank7.005 yrs
6Federal BankIndian Private Sector Bank7.152222 Days (6 yr 1 month)
7ICICI BankIndian Private Sector Banks7.105 yrs
8IDBI BankPublic Sector / Nationalized Bank6.855 yrs
9Thane Janata Sahakari BankCooperative Bank6.50*Above 60 months to 120 months
10Ratnakar Bank (RBL Bank)Indian Private Sector Bank6.2560 months 2 Days to 240 months

*For deposits less than Rs. 15 lakh.

Note: The data is dated 21st November 2022, 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.

Anjali Chourasiya
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