Fixed Deposit Interest Rates

What is Fixed Deposit (FD)?

Fixed deposit (FD) is a type of investment in India where investors put lump-sum amounts and banks/non-bank financial institutions provide attractive higher interest rates than a regular savings account. The fixed deposit also refers to term deposits or time deposits an investment option in India.

What are Fixed Deposit Interest Rates?

Fixed deposit interest rates vary from bank to bank. FD interest rates depend on the tenure of the deposit and the amount invested. Small financial banks provide higher interest rates on fixed deposits than public sector banks in India.

Comparison of Fixed Deposit Interest Rates in India 2024

Banks NameTenure (7 days – 10 years)
FD Interest Rate for General CitizensSenior Citizen FD Interest Rates
State Bank of India3.50% – 7.10%4.00% – 7.60%
Axis Bank3.00% – 7.00%3.50% – 7.75%
HDFC Bank3.00% – 7.00%3.50% – 7.75%
Citi Bank3.00% to 7.20%3.50% to 7.85%
Bank of India3.00% – 6.00%3.50% – 6.50%
Indian Bank2.80% – 6.10%3.30% – 6.60%
Canara Bank4.00% – 6.70%4.00% – 7.20%
Bank of Maharashtra2.75% – 6.00%3.25% – 6.50%
Indian Overseas Bank4.00% – 6.50%4.50% – 7.00%
RBL Bank3.50% – 7.00%4.00% – 7.50%
Punjab National Bank (PNB)3.00% – 6.25%3.50% – 6.75%
ICICI Bank3.00% – 6.90%3.50% – 7.50%
Bandhan Bank3.00% – 5.85%3.75% – 6.60%
Central Bank of India3.50% – 6.25%4.00% – 6.75%
IDBI Bank3.00% – 6.25%3.50% – 6.75%
IDFC Bank3.00% – 7.25%3.50% – 8.25%
Karnataka Bank3.50% – 5.80%3.90% – 6.20%
Kotak Mahindra Bank2.75% – 6.20%3.25% – 6.70%
UCO Bank2.90% – 6.10%3.15% – 6.60%
Union Bank of India3.00% – 6.50%3.50% – 7.00%
Yes Bank3.25% – 7.00%3.75% – 7.75%
IndusInd Bank3.50% – 7.00%4.25% – 7.75%
Bank of Baroda4.25% – 6.50%4.75% – 7.50%

Bank Fixed Deposit Interest Rates – Special Features

Features and benefits of fixed deposit in India 2024

  • Returns on the investment are fixed and not affected by market fluctuations
  • In fixed deposit, there is little to no risk of principal loss
  • NBFCs offer higher interest rates on FD than public sector banks
  • Investors can renew FD (Fixed Deposit) easily
  • Investors can take loans against FD up to 75%
  • FD allow 2 nominees to collect the amount
  • No premature withdrawal

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Important Terms Related to Fixed Deposit Interest Rates

Timely ClosureWhen the FD closes on maturity it is called a timely closure. Once FD matures banks pay back principal and interest rates of the tenure periods.
Breaking FD accountPremature closer of FD, when fixed deposit account closed before reaching the maturity periods. Banks & financial institutions put penalties on premature withdrawal of fixed deposits. However, a few banks in India waive the penalty in case of emergency.
Partial WithdrawalThis varies from bank to bank, some banks allow partial withdrawal of fixed deposit amount by putting a penalty on the withdrawal amount and the remaining fixed deposit amount will get the same interest as the previous one.
Renewal & Auto-RenewalRenewal of fixed deposit for the same periods again. Auto-renewal means the fixed deposit will get extended automatically following the previous instructions.
Auto-withdrawalWhen fixed deposit tenure the auto withdrawal executes and the amount moves to a regular savings account.

FD Interest Rate Calculator

Fixed deposit interest rate calculator is an online tool that allows users to calculate the FD interest rates and compare different maturity periods and interest rates offered by Banks in India before investing in an actual fixed deposit scheme.

You can choose the bank of your choice by using the FD calculator online. To use the fixed deposit calculator, you need to enter the required information such as tenure, deposit term, interest rates, and the amount of bank you want to invest in.

Taxation on Fixed Deposit Interest Rates

Tax levied on your fixed deposit interest earned as per your tax slab because the interest earned on the fixed deposit added to your total income.

Banks and financial institutions deduct TDS on fixed deposit interest rates as per the income tax rule. Banks do not deduct TDS on interest income of less than 40,000 in India annually.

FD Interest Rates – Tax Saving FD

Tax saving fixed deposit as the name suggests you can save tax up to 1.5 lakh under section 80C of the Income Tax Act, 1961. However, you will not get partial withdrawal and loans again FD facility on tax saving FD. Also, there are 5 years lock-in periods for tax-saving FD schemes.

Fixed Deposit Investment Tips

If you want to maximise the benefits of fixed deposit consider the below investment tips before investing in FD in India.

  • Choose the fixed deposit as per your financial goals. Short-term fixed deposits are good for immediate financial goals while long-term fixed deposits offer higher interest rates and tax benefits.
  • Consider investing in different fixed deposit schemes with different interest rates, amounts and tenure. This will help you get regular money and make use of higher interest rates.
  • Diversification of investment among, fixed deposits and other available investment options can lower your risk and get you get better return on your investment.
  • Avoid premature withdrawal because banks put a penalty on premature withdrawal.
  • Keep an eye on the interest rate trends so that you can switch between short-term and long-term fixed deposits.

Types of Fixed Deposit

  1. Standard Fixed Deposits
  2. Tax Saving Fixed Deposits
  3. Special Fixed Deposits
  4. Regular Income Fixed Deposits
  5. Senior Citizen Fixed Deposit
  6. Flexi Fixed Deposit
  7. Corporate and Other Fixed Deposits

How to Open Fixed Deposit

To open a fixed deposit account in India, you can visit the bank’s branch and visit their official websites. Check out the below online and offline process for fixed deposit.

Online Process to Open Fixed Deposit

Step 1: To initiate the fixed deposit opening process, visit the official website of the bank

Step 2: Log on to your bank account if you are an existing customer else create a new account

Step 3: Go to fixed deposit section

Step 4: Follow the on-screen instructions and fill in the complete required information

Step 5: You need to upload the necessary document specified by the bank to open a fixed deposit

Step 6: Now, verify the information and document

Step 7: After verifying the information & document make payment and keep the payment receipt for future use

Offline Process to Open Fixed Deposit

Step 1: Visit the bank branch of your choice and obtain the fixed deposit opening form

Step 2: Fill in the necessary information in the form including the amount and the tenure

Step 3: Submit the required document and completed form to bank

Step 4: Now, pay the fixed deposit amount to the bank via cash or cheque

Step 5: Now, the bank will verify the information provided by you and open your fixed deposit account if everything is fine

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FD Interest Rates – FAQs

Is FD 100% safe?

Interest rates on fixed deposits are fixed and FD is a stable investment option. The fixed deposit interest rates are not affected by market fluctuates and you can calculate the income from FD investment using an online FD calculator.

Can I get monthly interest on my fixed deposit?

Yes, You can choose monthly, or quarterly interest payouts. You can use the FD calculator to calculate the FD interest amount.

Is FD interest earned taxable?

Yes, The interest earned on the fixed deposit investment is taxable per your India tax slab.

What is the interest rate applicable for fixed deposits?

The interest rates of fixed deposits depend on factors like the bank you choose, tenure, total investment and other special fixed deposit schemes.

What are the Fixed Deposit Interest Rates in 2024?

Fixed deposit interest rates are subject to change. Banks offer 5.75% to 8.60% interest for 3 years tenure FD scheme.

When is TDS deducted?

TDS is deducted when the FD interest amount exceeds ₹40,000 for the general public and ₹50,000 for senior citizens.

What is the minimum amount to open an FD account?

To open a fixed deposit account or start an FD investment you need ₹5,000 using internet banking and ₹10,000 offline (when you visit the bank branch directly).

What is the minimum tenure for which one can open an FD account?

Banks in India are allowed to invest in fixed deposits for a minimum of 7 days.

How is the interest on a Bank Fixed Deposit calculated?

Tenure less than 6 months: Interest rates are calculated as simple interest and considered one-time payouts

Tenure 6 months and above: Compound interest is calculated and 1st quarter interest rates are added to the principal to calculate final interest rates.

Monthly interest payouts: Here interest rates are calculated differently compared to the standard fixed deposit scheme