Fixed Deposits (FDs) are among the safest investment options available today, offering guaranteed returns with minimal risk. For those seeking secure and steady growth of their savings, FDs remain a popular choice. With many banks offering competitive interest rates, it’s important to compare and choose the best option to earn best fd interest from top banks online in India.
Fixed Deposits
Fixed deposits are a type of financial investment where you deposit a lump sum with a bank for a fixed period at a predetermined interest rate. Over time, the money grows as it earns interest, and at maturity, you receive both the principal amount and accumulated interest.
Key Characteristics of Bank Fixed Deposits
Security: FDs are safer compared to volatile options like stocks.
Guaranteed Returns: Interest is fixed and unaffected by market fluctuations.
Flexible Tenures: You can choose from short to long-term deposits (up to 10 years).
Special Rates for Senior Citizens: Higher interest rates for seniors.
Tax Benefits: Tax-saving FDs are available with a 5-year lock-in period.
Top Bank FD Interest Rates 2024
Here are the latest FD interest rates offered by some of the top banks in India:
| Bank | FD Interest Rates (General) | FD Interest Rates (Senior Citizens) |
| IDBI Bank | 6.10% – 6.85% | Higher rates for seniors |
| PNB | 5.80% – 6.30% | Higher rates for seniors |
| IDFC First Bank | 6.50% | 7.00% |
| Axis Bank | 6.10% – 6.85% | Higher rates for seniors |
| HDFC Bank | 6.10% – 6.60% | 7.00% |
| IndusInd Bank | 6.75% – 7.50% | Higher rates for seniors |
| SBI Bank | 6.10% – 6.60% | 7.10% |
| RBL Bank | 6.55% – 7.05% | Higher rates for seniors |
| Canara Bank | 6.50% | Higher rates for seniors |
| Bank of Baroda | 5.65% – 6.30% | Higher rates for seniors |
| Union Bank of India | 6.70% | Higher rates for seniors |
| Punjab and Sind Bank | 6.10% – 6.60% | Higher rates for seniors |
Note: The above interest rates are subject to change with market prices.
Banks will not deduct TDS (Tax Deducted at Source) if your interest income is below ₹40,000 per year (₹50,000 for senior citizens).
By submitting Forms 15G/15H, you can avoid TDS if you fall within the exemption limits.
Top Bank FD Rates based on Tenure
Best Fixed Deposit (FD) interest rates offered by top banks, customized to your preferred tenure
For tenure between 7 days to 180 days
| Mx INT Rate | 4.85% |
| Mn INT Rate | 3.00% |
Note: The Above Interest rates are subject to market risks and may potentially vary with chainge in economy, Please refer to the respective Bank/NBFC source to stay updated.
For tenure between 180 days to 3 years
| Mx INT Rate | 6.10% |
| Mn INT Rate | 5.75% |
Note: The Above Interest rates are subject to market risks and may potentially vary with chainge in economy, Please refer to the respective Bank/NBFC source to stay updated.
| Bank | INR for (181 Days – 1 Year) |
| SBI (State Bank of India) | 5.75% |
| HDFC Bank | 6.00% |
| ICICI Bank | 6.10% |
| Axis Bank | 6.10% |
| Punjab National Bank | 5.75% |
| Kotak Mahindra Bank | 6.00% |
| Canara Bank | 5.80% |
| Bank of Baroda | 6.00% |
| Union Bank of India | 6.00% |
| IDFC First Bank | 6.10% |
Note: The Above Interest rates are subject to market risks and may potentially vary with chainge in economy, Please refer to the respective Bank/NBFC source to stay updated.
Factors Affecting FD Interest Rates of Top Banks
Factors affecting FD interest rates of top banks include RBI policies, inflation trends, and market liquidity. Banks adjust rates based on these economic conditions to stay competitive.
1.Monetary Policy and Economic Indicators
RBI’s policies on borrowng and lending practices govern the overall interest rates on financial products including that of Fixed deposits. These rates are otherwise addressed as REPO Rates. Secondly, we have inflation leading to higher interest rates to nullify the reduction in purchasing power. During strong economic growth, the demand for lending may increase to higher interest rates.
2. Bank-Specific Factors
The Credit rating and liquidity are 2 of the main banking factors that lead to higher interest rates and further attract depositors to capitalise on the growing economy. Following which are policies set up by the bank with a margin that can influence the rate decisions.
3. Tenure & Type of deposit
The impact on the interest rate is higher with the compounding effect interest amount and here in this case the tenure of the deposits. Top banks have many flexible interest rates deposit schemes to offer by the top performing banks.
4. Regulatory and Policy Factors
Close the taxes incurred based on the income, this can impact the FD options open for you. Changes in the Cash Reserve Ratio (CRR) or Statutory Liquidity Ratio (SLR) can impact bank liquidity and interest rates. Adding to that is Capital Adequacy Requirements and Government policies which has stricter capital requirements that may lead to higher rates.
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As of September 2023, the Indian economy is experiencing a gradual recovery from the pandemic, and interest rates have been on a general upward trend. However, the situation is dynamic, and factors like global economic conditions and RBI’s monetary policy decisions can influence future rate movements. |
Comparison of FD Rates from TOP Banks
| Bank Name | Tenure | Highest Interest Rates |
| AXIS Bank | 6 months – 5 years | 5.75% – 7.00% |
| SBI Bank | 3 Months – 10 Years | 5.50% – 6.50% |
| Equitas Bank | 7 Days – 10 years | 3.50% – 7.25% |
| HDFC Bank | 3 months – 10 years | 4.50% – 7.00% |
| ICICI Bank | 3 months – 10 years | 4.50% – 6.90% |
| Canara Bank | 3 months – 10 years | 5.50% – 6.70% |
| Bank of Baroda | 3 months – 10 years | 5.50% – 6.50% |
| Punjab National Bank | 3 months – 10 years | 4.50% – 6.50% |
| IDBI Bank | 3 months – 20 years | 4.50% – 4.80% |
| Indian Bank | 3 months – 10 years | 3.50% – 6.10% |
| UCO Bank | 3 months – 10 years | 4.50% – 6.10% |
| Yes Bank | 3 months – 10 years | 4.75% – 7.00% |
| Bank of India | 3 months – 10 years | 4.50% – 6.00% |
| Post Office | 1 year – 5 years | 6.90% – 7.50% |
| Union Bank of India | 3 months – 10 years | 3.50% – 6.50% |
| RBL Bank | 3 months – 20 years | 4.75% – 7.00% |
| Indian Overseas Bank | 3 months – 10 years | 4.50% – 6.50% |
| IDFC First Bank | 3 months – 10 years | 4.50% – 7.00% |
| LIC |
1 Year – 5 Years |
7.25% – 7.75% |
| Saraswat Bank | 3 Months – 10 Years | 6.00% – 7.00% |
| Ujjivan Small Finance Bank | 3 months – 10 years | 4.75% – 6.50% |
| Utkarsh Small Finance Bank | 3 months – 10 years | 4.75% – 7.00% |
| Karnataka Bank | 3 months – 10 years | 4.00% – 5.80% |
| Karur Vysya Bank | 3 months – 10 years | 5.25% – 6.65% |
| Jammu and Kashmir Bank | 3 months – 10 years | 4.60% – 6.50% |
| South Indian Bank | 3 months – 10 years | 3.50% – 5.50% |
| Punjab and Sind Bank | 3 months – 10 years | 4.25% – 6.25% |
| Standard Chartered Bank | 7 days – 5 years | 2.75% – 6.75% |
| HSBC Bank | 7 days – 5 years | 2.85% – 6.00% |
| Shriram Transport Finance | 1 year – 5 years | 7.80% – 8.60% |
| Tamilnad Mercantile Bank | 3 months – 10 years | 5.25% – 6.50% |
| IndusInd Bank | 7 days – 3 years | 3.50% – 7.25% |
| Bank of Maharashtra | 3 months – 10 years | 4.75% – 6.00% |
| Central Bank of India | 3 months – 10 years | 4.75% – 6.25% |
| Kotak Mahindra Bank | 3 months – 10 years | 4.00% – 6.20% |
| DHFL | 1 year – 10 years | 8.25% – 8.95% |
| DCB Bank | 3 months – 10 years | 4.75% – 7.25% |
Conclusion
Before opening or renewing an FD, it is essential to compare the latest interest rates across banks to maximize returns. Fixed deposits offer a secure way to grow your savings with guaranteed returns and flexible tenure options. Whether you’re a senior citizen looking for higher returns or a first-time investor seeking a low-risk investment, FDs remain one of the best choices for steady income.
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Frequently Asked Questions
Q. How can I maximize the profits on my fixed deposit?
A. Different banks offer varying FD rates, so compare carefully. Opt for longer tenures for higher interest rates aligned with your financial goals.
Q. How to choose my fixed deposit?
A. Consider FD safety ratings, bank reputation (like SBI, HDFC, ICICI), and choose between cumulative or non-cumulative interest payouts.
Q. Which bank gives the highest interest rate on FD?
A. Unity Small Finance Bank and NorthEast Small Finance Bank offer 9% interest on selected tenures; IndusInd Bank provides up to 8.25%.
Q. Can I withdraw from a Tax Saver Term Deposit early?
A. No, a Tax Saver FD has a mandatory 5-year lock-in period. Early withdrawal is not allowed
Q. Which provision of the Income Tax Act does the tax benefit on tax-saver FDs fall under?
A. The tax benefit on tax-saver FDs is available under Section 80C of the Income Tax Act
Q. What is the minimum deposit amount for an FD account?
A. The minimum deposit varies by bank, but typically starts at ₹1,000 for most banks. Some small finance banks may allow deposits starting as low as ₹50
Q. Is it possible to earn monthly interest on a fixed deposit?
A. Yes, you can opt for a non-cumulative FD, where interest is paid out monthly, quarterly, or annually
