Fixed Deposits, also known as Term Deposits have for decades been the top investment pick for investors, owing to the high-interest rate and security. While commercial banks provide interest up to 7.50%, for small finance banks it scales up as high as 9% for individuals. Companies have schemes where interest returned exceeds the 10% mark. For senior citizens, the interest rate is generally 0.25%-0.50% higher than regular interest rates at almost every bank or financial institution.
TOP BANKS FIXED DEPOSIT INTEREST RATES
The table below gives an idea about the interest rates for domestic FD accounts and give an idea of how much interest you can earn with fixed deposits at top banks. Tenure for almost all of them is the same.
|Bank||Regular FD Interest Rates*||Senior Citizen FD Interest Rates*||Range of Tenure|
|IndusInd Bank||3.75%||8.00%||4.25%||8.50%||7 days to 10 years|
|State Bank of India||5.75%||6.85%||6.25%||7.35%||7 days to 10 years|
|HDFC Bank||3.50%||7.25%||4.00%||7.75%||7 days to 10 years|
|ICICI Bank||4.00%||7.25%||4.50%||7.75%||7 days to 10 years|
|Punjab National Bank||5.70%||6.75%||6.20%||7.25%||7 days to 10 years|
|Axis Bank||3.50%||7.30%||3.50%||7.90%||7 days to 10 years|
|Bank of Baroda||4.25%||6.70%||4.75%||7.20%||7 days to 10 years|
|Union Bank||5.00%||6.85%||5.50%||7.35%||7 days to 10 years|
|IDBI Bank||6.25%||7.55%||6.25%||7.55%||7 days to 20 years|
|Bank of India||5.25%||6.70%||5.75%||7.20%||7 days to 10 years|
*The interest rates could change anytime without prior notice. Also, these rates are for deposits below Rs. 1 Crore.
TOP COMPANY FD DEPOSIT SCHEMES 2019
Companies, though seemingly less reliable than banks have much higher FD interest rates. Bellow are some top rated and trustworthy companies you can invest your money in as Fixed Deposits.
|Company||FD Interest Rates (For Regular Individuals)||FD Interest Rates (Senior Citizen)||Tenure Range|
|Shriram Transport Finance Corporation (Cumulative)||8.00%||10.42%||8.25%||10.77%||1 year to 5 years|
|LIC Housing||7.55%||7.85%||7.80%||8.10%||1 year to 5 years|
|Mahindra Finance (Dhanvruddhi Cumulative)||8.25%||8.75%||8.35%||8.85%||15 months to 40 months|
|Mahindra Finance(Samruddhi Cumulative)||8.00%||8.50%||8.10%||8.60%||1 year to 5 years|
|Bajaj Finance||7.72%||8.75%||8.07%||9.10%||1 year to 5 years|
|PNB Housing Finance||8.25%||8.45%||8.50%||8.70%||1 year to 10 years|
|DHFL Fixed Deposit (Cumulative)||8.15%||8.75%||8.55%||9.15%||1 year to 10 years|
|Kerela Transport Development Fixed Deposit (KTDFC)||8.25%||8.50%||8.50%||8.75%||1 year to 5 years|
TOP SMALL FINANCE BANK FIXED DEPOSIT SCHEMES
Small Finance Banks are licensed by RBI and provide attractive FD Interest rates to cater investor’s diverse requirements. Here is a list of small finance banks that provide the best FD interest rates in India.
|Small Finance Banks||FD Interest Rates (Regular Individuals)||FD Interest Rates (Senior Citizen)||Tenure|
|Ujjivan Small Finance Bank||5.50%||8.50%||6.00%||9.00%||7 days to 10 years|
|Utkarsh Small Finance Bank||3.50%||9.00%||4.00%||9.50%||7 days to 10 years|
|Fincare Small Finance Bank||4.00%||9.00%||4.50%||9.50%||7 days to 7 years|
|ESAF Small Finance Bank||5.60%||8.75%||6.10%||9.25%||7 days to 10 years|
|AU Small Finance Bank||4.00%||8.75%||4.50%||9.25%||7 days to 10 years|
|Suryoday Bank||4.00%||9.00%||4.50%||9.50%||7 days to 10 years|
|Equitas Small Finance Bank||5.00%||8.00%||5.50%||8.50%||7 days to 10 years|
|Janalakshmi Small Finance Bank||6.00%||-8.50%||6.60%||9,10%||7 days to 10 years|
BEST TAX SAVER FD
Fixed Deposits attract taxes from the government. But, to attract more investors towards Fixed Deposits, banks provide tax saver fixed deposits which get a tax exemption on your investments under Section 80C of the Income Tax Act, 1961. The maximum exemption that you as an investor can earn is Rs.1.5 lakh under section 80C. Below is a list of top banks that provides tax-free FD facilities.
|Banks||Tax-Saver FD Interest Rates|
|State Bank of India||6.85%||7.35%|
|Kotak Mahindra Bank||6.50%||7.00%|
THINGS YOU SHOULD KNOW ABOUT TAX SAVER FD
- The lock-in period for such FDs is 5 years and you can’t make premature withdrawals.
- You can’t take a loan against a tax-free FD.
- There is a certain minimum amount that varies from bank to bank.
- Interest earned is taxable.
- The maximum tax deduction that can be claimed is Rs. 1,50,000/- under Section 80C of the Income Tax Act, 1961
This is an online tool which is used to calculate interest returns in real-time. Enter your principal, tenure, and interest rate and it will display your maturity amount and interest earned. This tool can be handy if you are confused by the abundance of options available.
FIXED DEPOSIT: THINGS YOU SHOULD KNOW BEFORE INVESTING
- Banks have all the rights to change the interest rates. Moreover, they depend on various external factors too e.g. inflation, RBI policies.
- For senior citizens, interest rates go as high as 10.77%.
- Some banks and other institutions levy a premature termination penalty if you withdraw your FD before its tenure ends.
- Fixed Deposits are mostly risk-free as they are government backed in most cases and they are covered by insurance. However, one must note that the insurance cover has an upper limit of Rs.1 lakh.