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Fixed Deposit

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Earn 8.4%* Interest on FD

& Get a Lifetime Free Step Up Credit Card

  • Safe & Secure FD, Insured by RBI
  • No Savings A/c Required
  • FD Starts from Rs 2000
  • Card Limit = FD Amount

*Rates are subject to change as per the bank's discretion.

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हिंदी में पढ़े
Updated: 31-03-2023 06:59:42 AM

Fixed deposit (FD) (also referred as ‘time deposit’ or ‘term deposit’) is an investment option that allows depositors to park their idle money for a fixed period and earn fixed interest on it at regular intervals during the chosen tenure or at maturity. It offers income certainty and capital protection, making it a popular investment choice, especially among new and conservative investors. These features also make fixed deposits an ideal instrument for realizing short-term financial goals and for parking emergency and post-retirement corpuses. FD interest rates of scheduled banks range from 2.10% p.a. to around 7.50% p.a. for the regular depositors for tenures ranging from 7 days to 10 years. Senior citizens are usually offered an additional interest of 0.50%-0.75% p.a. above the applicable FD card rates.

Looking for Higher FD rates? Book an FD @8.4% p.a. and get a lifetime free credit card

  • FDs of up to ₹5 lakhs insured by RBI

  • No hassle of opening a saving account

  • No documentation

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FD Interest Rates

Small Finance Banks and NBFCs offer the highest FD interest rates. Following them are PSU Banks and large Private Sector Banks. However, Private Sector Banks like Bandhan Bank, DCB Bank, Tamilnad Mercantile Bank, RBL Bank, IDFC First Bank, IndusInd Bank, City Union Bank, Yes Bank, SBM Bank, CSB Bank and Federal Bank offer higher FD slab rates than the fixed deposit rates offered by other Private Sector Banks.

Fixed Deposit Interest Rates of Small Finance Banks

Bank NameInterest Rates (% p.a.)
Highest slab1-year tenure3-year tenure5-year tenure
AU Small Finance Bank8.006.358.007.20
Capital Small Finance Bank Limited7.607.157.157.10
Equitas Small Finance Bank8.207.707.757.00
ESAF Small Finance Bank8.106.005.755.25
Fincare Small Finance Bank8.417.508.008.00
Jana Small Finance Bank8.157.258.107.25
North East Small Finance Bank8.006.507.256.25
Shivalik Small Finance Bank Limited8.007.508.007.00
Suryoday Small Finance Bank8.516.857.257.50
Ujjivan Small Finance Bank8.256.507.207.20
Unity Small Finance Bank9.007.357.657.65
Utkarsh Small Finance Bank8.257.757.507.50

Fixed Deposit rates as of 31 March 2023

Earn 8.4% p.a. on your FD & Get a lifetime free Step Up Credit Card

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8.4%INTEREST ON FD

FD Interest Rates of Private Sector Banks

Bank NameInterest Rates (% p.a.)
Highest slab1-year tenure3-year tenure 5-year tenure
Axis Bank7.266.757.007.00
Bandhan Bank8.007.257.255.85
City Union Bank7.756.757.256.90
CSB Bank7.505.005.755.75
DBS Bank7.506.256.506.50
DCB Bank8.007.257.607.60
Dhanlaxmi Bank7.256.256.006.10
Federal Bank7.256.806.606.60
HDFC Bank7.106.607.007.00
ICICI Bank7.106.707.007.00
IDBI Bank7.256.756.256.25
IDFC First Bank7.756.757.757.00
IndusInd Bank7.757.507.757.25
Jammu & Kashmir Bank7.257.256.506.50
Karnataka Bank7.507.005.755.75
Karur Vysya Bank7.507.007.006.25
Kotak Mahindra Bank7.207.006.506.20
Nainital Bank7.056.606.255.75
RBL Bank7.807.007.007.00
SBM Bank India8.407.057.307.75
South Indian Bank7.406.606.506.00
Tamilnad Mercantile Bank8.007.256.506.50
Yes Bank7.757.257.007.00

Fixed Deposit rates as of 31 March 2023

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FD Rates for Public Sector Banks

Bank NameInterest Rates (% p.a.)
Highest slab1-year tenure 3-year tenure5-year tenure
Bank of Baroda7.056.756.756.50
Bank of India7.056.006.506.00
Bank of Maharashtra7.006.256.005.75
Canara Bank7.156.756.506.50
Central Bank of India7.556.756.256.25
Indian Bank7.106.106.256.25
Indian Overseas Bank7.006.456.506.50
Punjab & Sind Bank8.006.406.256.25
Punjab National Bank7.256.807.006.50
State Bank of India7.106.806.506.50
UCO Bank7.206.756.306.20
Union Bank of India7.306.307.306.70

Fixed Deposit rates as of 31 March 2023

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Fixed Deposit Rates – Tax Saving FD

BanksInterest Rates (p.a.)
General CitizensSenior Citizens
AU Small Finance Bank7.20%7.70%
Axis Bank7.00%7.75%
Bandhan Bank5.85%6.60%
Bank of Baroda6.50%7.15% – 7.50%
Bank of India6.00%6.75%
Bank of Maharashtra5.75%6.25%
Capital Small Finance Bank Limited7.10%7.75%
Central Bank of India6.25%6.75%
DCB Bank7.60%8.10%
Federal Bank6.60%7.25%
Fincare Small Finance Bank8.00%8.60%
HDFC Bank7.00%7.50%
ICICI Bank7.00%7.50%
IDBI Bank6.25%7.00%
IDFC First Bank7.00%7.50%
Indian Bank6.10% – 6.25%6.60% – 6.75%
Indian Overseas Bank6.50%7.00%
IndusInd Bank7.25%7.75%
Jammu & Kashmir Bank6.50%7.00%
Jana Small Finance Bank7.25%8.20%
Karnataka Bank5.75%6.15%
Kotak Mahindra Bank6.20%6.70%
Karur Vysya Bank5.90%5.90%
Punjab & Sind Bank6.25%6.75%
Punjab National Bank6.50%7.00%
RBL Bank7.00%7.50%
SBM Bank India7.75%8.25%
Shivalik Small Finance Bank Limited7.00%7.50%
South Indian Bank6.00%6.50%
State Bank of India6.50%7.50%
Suryoday Small Finance Bank7.50%7.75%
Tamilnad Mercantile Bank6.50%6.50%
UCO Bank6.20%6.70%
Ujjivan Small Finance Bank7.20%7.95%
Union Bank of India6.70%7.20%
Utkarsh Small Finance Bank7.50%8.25%

Fixed Deposit rates as of 31 March 2023

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FD Interest Rates of Leading Foreign Banks

Bank NameInterest Rates (p.a.)
Highest slab (%)1-year tenure (%)3-year tenure (%)5-year tenure (%)
Citibank7.777.253.503.50
Deutsche Bank7.757.007.757.50
HSBC Bank7.504.007.006.00
Standard Chartered Bank7.357.256.756.75

Fixed Deposit rates as of 31 March 2023

Company/Corporate Fixed Deposit Rates

Company NameInterest Rates (p.a.)Tenure rangeAdditional interest rate for senior citizen (p.a.)
1-year tenure3-year tenure5-year tenure
Bajaj Finance Limited7.40%7.65%7.65%12-60 months0.25%
HDFC Ltd.* (Regular Deposit up to Rs 2 cr)7.10%7.40%7.40%12-120 months0.25%
ICICI Home Finance7.00%7.40%7.50%12-120 months0.25%
Kerala Transport Development Finance Corporation7.00%7.00%6.75%12-60 months0.25%
LIC Housing Finance Ltd.7.00%7.50%7.50%12-60 months0.25%
Mahindra Finance7.40%7.70%7.75%12-60 months0.25%
Manipal Housing Finance Syndicate Ltd.7.75%7.75%7.25%12-60 months–
Muthoot Capital Services Limited6.25%6.75%7.25%12-60 months0.25%
PNB Housing Finance Ltd.7.35%7.70%7.50%12-120 months0.25%
Shriram Finance Ltd.**7.34%7.95%8.18%12-60 months0.50%
Sundaram Home Finance7.45%7.75%7.90%12-60 months0.50%
Sundaram Finance7.45%7.75%–12 to 36 months0.35%

*Additional ROI of 0.05% p.a. will be applicable on Individual deposits placed/renewed through HDFC’s online system and auto-renewed deposits.
**At Monthly Rests. Additional interest of 0.25% p.a. is applicable on all renewals where the deposit is matured.

Fixed Deposit Interest rates as of 31 March 2023

Check Corporate Fixed Deposit Interest Rates here.

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Why Invest in Fixed Deposits (FD)?

1. Guaranteed Returns on Investment

FD interest rates booked at the time of opening an Fixed Deposit account remains the same till its maturity, regardless of any changes in the banks’ FD card rates in the interim. For instance, if an individual opens a bank fixed deposit of 3 years tenure at 6% p.a., the interest rate will remain the same till the completion of its 3 years tenure. This offers a high degree of income certainty in FDs, even higher than those offered by most small saving schemes.

2. Capital Protection

Fixed deposits booked with the scheduled banks are covered under the deposit insurance program of DICGC, a subsidiary of RBI. The insurance cover is applicable on cumulative bank deposits, which include fixed deposits, savings account, recurring deposits and current account, of up to Rs 5 lakh per bank per depositor, in case of bank failure.

Suggested Read: DICGC – All about the Deposit Insurance

3. Tax Deduction under Section 80C 

Many banks and NBFCs offer 5-year tax-saving FD scheme with lock-in period of 5 years. The principal component of up to Rs 1.5 lakh each financial year can be claimed as tax deductions u/s 80C of the Income Tax Act. However, the interest component is taxed as per the tax slab of the depositor.

Read More: Tax-saving Fixed Deposits

4. Loan against Fixed Deposit (FD)

Depositors can leverage their FDs to avail loans. Loans against FD are usually offered in the form of overdraft facility, wherein the credit limit is sanctioned on the basis of the Fixed Deposit amount pledged as collateral and the interest is also levied only on the amount drawn till its repayment. Moreover, the borrower continues to earn interest on the pledged FDs during the loan tenure. Withdrawals can be made anytime up to the credit limit from their overdraft account and repay it as per their repayment capacity. These features of loans against FDs make them an excellent tool for mitigating frequent liquidity and cash flow mismatches, without requiring prematurely closing FDs and incurring premature withdrawal penalties.

5. Credit Card against Fixed Deposit

Depositors having nil or low credit score can leverage their Fixed Deposits to avail secured credit cards. As the transactions made through secured cards are reported to the credit bureaus, disciplined usage of secured credit cards can help in building or improving one’s credit score. Such cards can also be helpful for those who fail to avail regular credit cards due others reasons like inadequate income, unserviceable location, employer’s profile or job profile. Paisabazaar, in partnership with SBM Bank (India) Ltd., issues credit card against FD – Step UP Credit Card. It’s a secured credit card issued against fixed deposits opened with SBM Bank. The card is a credit score builder best suited for consumers lacking credit access due to ‘no’ or ‘damaged’ credit history. Other features available on this credit card includes 100% credit limit on the fixed deposit amount and the facility to use the virtual credit card as soon as the Fixed Deposit is booked. The credit card also comes with attractive offers and discounts from top brands like Zomato, Swiggy, Nykaa, BookMyShow, Big Basket, Lifestyle, Yatra, Croma, Reliance Digital, etc.

Click to know more about Step UP Credit Card.

Frequently Asked Questions (FAQs)

Q. Who can invest in a fixed deposit scheme in India?

A. Resident individuals, private and public limited companies, Hindu Undivided Families (HUF), partnership firms, societies, governments, local bodies, etc. can book fixed deposits.

Q. What are the minimum and maximum terms of Fixed Deposit schemes?

A. The tenure of FD schemes usually varies from 7 days to as long as 10 years. However, NBFCs offer Fixed Deposit investment for a period ranging from 12 months to 60 months and HFCs offer Fixed Deposit tenures of 12 months to 120 months of fixed deposits.

Q. What is the minimum lock-in period for a tax-saving fixed deposit?

A. Tax-saving Fixed Deposit schemes have a lock-in period of 5 years.

Q. What is the minimum deposit amount allowed for opening a fixed deposit?

A. The minimum amount set by banks and NBFCs for opening a fixed deposit is generally set at Rs. 1,000. Public sector banks may have lower minimum deposit criteria while some large private sector banks have set minimum deposit requirement of Rs 5,000. However, a tax-saving 5-year fixed deposit can be opened with an amount as low as Rs. 100.

Q. How much tax is deducted on FD interest income?

A. TDS @10% is levied on interest income of more than Rs. 40,000 for regular individuals and Rs. 50,000 for senior citizens. For Company/Corporate Fixed Deposits, this limit has been set at Rs. 5,000.

Q. Is it compulsory to submit a PAN to open an FD?

A. Yes. It is compulsory to quote your PAN when applying for a fixed deposit. However, if you do not have a PAN, you need to submit duly filled Form 60/61 (not being a company or a firm).

Q. Is it safe to open Fixed Deposit in small finance banks?

A. Yes. Small finance banks are regulated by the Reserve Bank of India. Also, deposit insurance of up to Rs. 5 lakh by DICGC is provided on these fixed deposits.

Q. What is NRE fixed deposit?

A. The full form of NRE Fixed Deposit is Non-Resident External Fixed Deposit. This Fixed Deposit is for Non-Resident Indians (NRIs). They can deposit their foreign earnings in an Indian Account. Interest earned on an NRE FD is not taxable in India. The account is maintained in INR which means that the money deposited is converted as per the later forex rates.

Q. What is the difference between NRE FD and NRO FD?

A. NRE Fixed Deposit (Non-Resident External) is for NRIs to remit/transfer their foreign earnings to an Indian account. NRO Fixed Deposit (Non-Resident Ordinary) is for NRIs to manage their income earned in India.

Read: NRE vs NRO vs FCNR

Q. Can depositors get interests on a monthly basis?

A. Yes, non-cumulative fixed deposits have this option. You can choose to have interest in your account on a monthly basis.

Q. What benefits are offered to senior citizens under FD schemes?

A. Senior citizens get an additional interest (usually up to 0.50%, approximately) on the same FD scheme. Banks like SBI, ICICI Bank and HDFC Bank are offering extra interest of up to 0.30% on the existing preferential rates to the senior citizens.

Suggested Read: Senior Citizen Fixed Deposit Interest Rates

Q. Does premature withdrawal negatively affect Fixed Deposit earnings?

A. Yes. You have to pay a penalty of up to 1% on premature closure. This 1% of penalty is levied on the effective rate of interest which reduces your earnings.

Click here to know more about the premature withdrawal of Fixed Deposit.

Q. Can minors open a fixed deposit account?

A. Many banks and NBFCs offer Fixed Deposit investment options to minors with a parent/guardian acting as co-applicant. Post Office Fixed Deposit or post office time deposits can be opened in the name of a minor (above the age of 10 years) and be operated by a legal guardian till the minor attains 18 years of age.

Check the updated Post Office FD Rates here.

 

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