Compare Bank FD Rates
What is Fixed Deposit
A fixed deposit is a financial investment instrument offered by banks and non-bank financial businesses that allows investors to deposit money and earn a higher interest rate than a conventional savings account. In India, fixed deposits are the most popular investment option. FDs have been associated with investing for many years because they are regarded safe, give assured returns over time, and are flexible in terms of duration.
Fixed deposits (FDs) are best for investors that have a low-risk tolerance. However, to invest in the bank or NBFC with the best FD rates, one needs to verify and compare interest rates.
Benefits of an FD
- Low risk: Market risks have no effect on your fixed deposit returns.
- Insurance: The RBI insures your deposits up to Rs.1 lakh.
- Loan against FD: You can borrow up to 90% of your deposit amount at extremely low-interest rates. This is usually around 2% higher than the FD interest rate.
- Simple liquidity: In the event of an emergency, you can quickly liquidate your FD and release the funds.
- Regular income: You can have the interest amount credited to your account on a monthly, quarterly, or annual basis.
- Tax advantages: Investing in tax-saving fixed deposits can result in tax deductions of up to Rs.1.5 lakh per fiscal year.
- Senior citizens: When compared to regular customers, senior citizens are offered a higher interest rate.
- High-interest rates: Earn interest on your deposits and enjoy your savings growth.
Fixed Deposit rates by Bank
|
Banks |
Interest Rate (per annum) |
| Axis Bank |
Up to 5.75% |
|
Allahabad Bank |
Up to 5.25% |
| Andhra Bank |
Up to 5.6% |
|
Abhyudaya Co-operative Bank Ltd. |
Up to 6% |
| Bank of Baroda |
Up to 5.25% |
|
Bank of India |
Up to 5.3% |
| Bank of Maharashtra |
Up to 4.9% |
|
Bandhan Bank |
Up to 5.5% |
| Bajaj Finserv |
Up to 6.5% |
|
Canara Bank |
Up to 5.5% |
| Central Bank of India |
Up to 5.1% |
|
Corporation Bank |
Up to 5.6% |
| Citibank |
Up to 3.5% |
|
Cosmos Bank |
Up to 5.8% |
| Dena Bank |
Up to 5.25% |
|
DBS |
Up to 5.5% |
| Dhanlaxmi Bank |
Up to 5.6% |
|
Deutsche Bank |
Up to 6.25% |
| ESAF Small Finance Bank |
Up to 6.5% |
|
Federal Bank |
Up to 5.5% |
| Fincare Small Finance Bank |
Up to 6.5% |
|
HDFC Bank |
Up to 5.5% |
| HSBC Bank |
Up to 4% |
|
ICICI Bank |
Up to 5.5% |
| Indusind Bank |
Up to 6.5% |
|
IDBI Bank |
Up to 5.25% |
| Indian Bank |
Up to 5.25% |
|
Indian Overseas Bank |
Up to 5.25% |
| IDFC First Bank |
Up to 6% |
|
J&K Bank |
Up to 5.3% |
| Jana Bank |
Up to 6.75% |
|
Kotak Mahindra Bank |
Up to 5.3% |
| Karnataka Bank |
Up to 5.6% |
|
Karur Vysya Bank |
Up to 6% |
| LIC Housing Finance Ltd. |
Up to 5.75% |
|
Oriental Bank of Commerce |
Up to 5.25% |
| Punjab National Bank |
Up to 5.25% |
|
PNB Housing |
Up to 6.7% |
| RBL Bank |
Up to 6.6% |
|
SBM Bank India Ltd. |
Up to 6.5% |
| State Bank of India |
Up to 5.4% |
|
Standard Chartered Bank |
Up to 5.4% |
| Syndicate Bank |
Up to 5.5% |
|
Shriram Transport Finance |
Up to 7.95% |
| Saraswat Bank |
Up to 5.85% |
|
South India Bank |
Up to 5.65% |
| Sundaram Finance Bank |
Up to 6.22% |
|
Suryodaya Small Finance Bank |
Up to 6.75% |
| Tamilnad Mercantile Bank |
Up to 5.75% |
|
United Bank of India |
Up to 6.5% |
| Union Bank |
Up to 5.6% |
|
Ujjivan Bank |
Up to 6.75% |
| UCO Bank |
Up to 5% |
|
Utkarsh Small Finance Bank |
Up to 7% |
| Vijaya Bank |
Up to 5.25% |
|
YES Bank |
Up to 6.5% |
Highest Fixed Deposit Rate in 2021
Fixed deposits, also known as FDs, are one of India’s most popular investment options. Individuals that have a little to no risk appetite and seek assured returns on their investments choose it. Muthoot Capital now offers the highest FD rate, which is 8% for a 5-year term. For regular citizens, Utkarsh Small Finance Bank, Suryodaya Bank, and Jana Bank are now offering the best FD rates of 6.75 percent. RBL, SBM, YES, and Indusind, among India’s leading banks, provide 6.5 percent for normal consumers and up to 7.25 percent for senior citizens.
Small finance banks are currently offering greater interest rates than most large banks, as may be observed. While some customers may prefer to invest in large, well-established banks, they should be aware that deposits made in Small Finance Banks (as well as commercial banks) are insured by the Deposit Insurance and Credit Guarantee Corporation’s depositor insurance program (DICGC). This means that bank deposits of up to Rs. 5 lakh, including fixed, recurring, savings, and current accounts, are guaranteed per depositor per bank (commercial and small finance banks).
FAQs:
What are the minimum and maximum deposit amounts for a Fixed Deposit?
Banks and NBFCs have different minimum amounts. It usually ranges from 1000 to 25,000 dollars. The greatest amount that can be put in a Fixed Deposit has no upper limit.
Is a Fixed Deposit a Taxable Investment?
Yes, interest collected on a savings account is taxed. If the amount of interest earned surpasses 5000 per year, TDS is deducted. To prevent tax deduction, you might submit form 15G/H to the bank or NBFC.
Is it possible for me to invest in a fixed deposit?
If you are in the following categories, you can invest in a fixed deposit:
Undivided Hindu Family (HUF).
Partnership Firms, Limited Companies, and Group Companies
Sole traders
Resident Indians.
Associations, Clubs, and Societies.
Family Trusts.
Minors (through their natural or legally appointed guardian).
What is a loan against a fixed deposit?
Instead of breaking your Fixed Deposit, you can take out a loan against the amount you have deposited. The sanctioned amount is typically 70-90 percent of the fixed deposit amount, with a competitive interest rate.
