A fixed deposit (FD) is best suited for investors with low-risk tolerance. However, one should check and compare interest rates to invest in the bank and/or NBFC with the best FD rates. At Paisabazaar, we provide you with complete information on banks and financial institutions offering fixed deposits.
Compare Best FD Rates from Top Banks
| Fixed Deposit Rates – October 2021 | ||||
| Bank Name | Interest Rates | |||
| Highest slab (%) | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | |
| SMALL FINANCE BANKS | ||||
| Suryoday Small Finance Bank | 7.00 | 6.50 | 7.00 | 6.75 |
| Utkarsh Small Finance Bank | 6.75 | 6.25 | 6.00 | 6.00 |
| Jana Small Finance Bank | 6.75 | 6.25 | 6.50 | 6.50 |
| Fincare Small Finance Bank | 6.75 | 5.60 | 6.25 | 6.75 |
| Ujjivan Small Finance Bank | 6.50 | 6.00 | 6.50 | 6.25 |
| ESAF Small Finance Bank | 6.25 | 6.25 | 5.75 | 5.25 |
| Capital Small Finance Bank | 6.25 | 6.00 | 6.00 | 6.00 |
| Equitas Small Finance Bank | 6.00 | 5.85 | 6.00 | 5.75 |
| AU Small Finance Bank | 6.00 | 4.85 | 6.00 | 5.75 |
| PRIVATE SECTOR BANKS | ||||
| SBM Bank India | 6.50 | 7.00 | 6.50 | 6.00 |
| RBL Bank | 6.30 | 6.00 | 6.30 | 6.30 |
| IndusInd Bank | 6.00 | 6.00 | 6.00 | 6.00 |
| Karur Vysya Bank | 6.00 | 5.25 | 5.50 | 5.75 |
| DCB Bank | 5.95 | 5.55 | 5.95 | 5.95 |
| CSB Bank | 5.75 | 5.00 | 5.25 | 5.25 |
| Axis Bank | 5.75 | 5.10 | 5.40 | 5.75 |
| South Indian Bank | 5.65 | 5.40 | 5.50 | 5.65 |
| Tamilnad Mercantile Bank | 5.60 | 5.50 | 5.25 | 5.25 |
| Karnataka Bank | 5.60 | 5.20 | 5.50 | 5.50 |
| Dhanlaxmi Bank | 5.50 | 5.15 | 5.30 | 5.40 |
| Bandhan Bank | 5.50 | 5.50 | 5.25 | 5.00 |
| HDFC Bank | 5.50 | 4.90 | 5.15 | 5.30 |
| ICICI Bank | 5.50 | 4.90 | 5.15 | 5.35 |
| Nainital Bank | 5.35 | 5.10 | 5.35 | 5.35 |
| Jammu & Kashmir Bank | 5.30 | 5.10 | 5.30 | 5.30 |
| IDFC First Bank | 5.25 | 4.75 | 5.00 | 5.20 |
| Kotak Mahindra Bank | 5.25 | 4.50 | 5.20 | 5.25 |
| PUBLIC SECTOR BANKS | ||||
| Union Bank of India | 5.50 | 5.00 | 5.30 | 5.40 |
| State Bank of India | 5.40 | 5.00 | 5.30 | 5.40 |
| IDBI Bank | 5.40 | 5.05 | 5.40 | 5.25 |
| Canara Bank | 5.35 | 5.10 | 5.25 | 5.25 |
| Punjab & Sind Bank | 5.30 | 5.05 | 5.30 | 5.30 |
| Indian Bank | 5.25 | 5.00 | 5.25 | 5.25 |
| Bank of Baroda | 5.25 | 4.90 | 5.10 | 5.25 |
| Punjab National Bank | 5.25 | 5.00 | 5.10 | 5.25 |
| Indian Overseas Bank | 5.20 | 5.15 | 5.20 | 5.20 |
| Bank of India | 5.05 | 5.00 | 5.05 | 5.05 |
| Bank of Maharashtra | 4.90 | 4.90 | 4.90 | 4.90 |
| FOREIGN BANKS | ||||
| Deutsche Bank | 6.25 | 3.85 | 4.50 | 6.25 |
| DBS Bank India | 5.50 | 4.25 | 5.50 | 5.50 |
| HSBC Bank | 4.00 | 3.10 | 4.00 | 4.00 |
| CitiBank | 3.50 | 2.75 | 3.50 | 3.50 |
The above-mentioned FD interest rates from banks are for regular citizens and are updated as on 7th Oct 2021.
Fixed Deposits or FDs are one of the most popular investment products in India. They are highly preferred by individuals who have low to no risk appetite and want guaranteed returns on their investments. The highest FD rate available currently is 7% by Utkarsh Small Finance Bank. Small Finance Banks like Suryodaya Bank, and Jana Bank are currently offering the best FD rates i.e 6.75% for regular citizens.
Checkout the best FD Rates 2021 Here.
As can be seen, small finance banks are currently offering higher interest rates than most large banks. While some customers may choose to invest in large and established banks, they should note that deposits made in Small Finance Banks (just like commercial banks) are covered under the depositor insurance program of Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that bank deposits (commercial as well as small finance banks) of up to Rs. 5 lakh, including fixed, recurring, savings, and current deposits, per depositor per bank, are insured.
Apart from guaranteed returns, fixed deposits offer another benefit to investors – credit cards against FD. Such cards are secured credit cards and are a good option for those who do not have a good credit score or are new to credit. Such people may find it difficult to get a credit card but with a fixed deposit, it gets easy.
This credit card, being a secured credit card will help you strike a balance in your credit mix and improve your credit score while adding to your investment with guaranteed (currently 6.5% of interest) returns on FD.