Fixed deposits (FDs) stand out as one of the safest investment choices in India. They offer a reliable avenue to earn interest on deposited funds, with predetermined interest rates set by NBFCs or banks.

 

Investing in FDs allows you to plan your finances effectively, providing a predictable source of returns. This makes fixed deposits an excellent option for growing your savings.

 

The interest earned through them is not only safe but also guaranteed until the maturity date. Before booking an FD, it's crucial to comprehend fixed deposit interest rates and how they function, ensuring informed decision-making for a profitable investment.

 

Instantly determine the potential interest earned on your FD with the fixed deposit calculator provided below: 

Compare Fixed Deposit Interest Rates

Partner
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Maximum Interest Rate
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Maximum Tenor
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Minimum Deposit Amount
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Bajaj Finance

8.60% p.a.

60 Months

₹15,000

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PNB Housing Finance

7.95% p.a.

120 Months

₹10,000

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Mahindra Finance Ltd

8.30% p.a.

60 Months

₹5,000

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AU Small Finance Bank

8.50% p.a.

120 Months

₹1,000

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YES Bank

8.25% p.a.

120 Months

₹10,000

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Ujjivan Small Finance Bank

9.00% p.a.

120 Months

₹1,000

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Shriram Finance

9.40% p.a.

120 Months

₹5,000

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Bank FD Interest Rates for Non-Senior Citizens

This table showcases some of the highest FD interest rates banks offer on deposits under ₹2 Crores for non-senior citizens in 2024. 

Bank Name

Interest Rate (p.a.) 

Axis Bank

Up to 7.10%

ICICI Bank

Up to 7.10%

HDFC Bank

Up to 7.20%

Canara Bank

Up to 7.25%

Kotak Mahindra Bank

Up to 7.25%

SBI

Up to 7.00%

Bank of Baroda

Up to 7.25%

Bandhan Bank

Up to 7.85%

IDBI Bank

Up to 7.00%

IDFC Bank

Up to 7.75%

Indian Bank

Up to 7.25%

IndusInd Bank

Up to 7.50%

Punjab National Bank

Up to 7.25%

Union Bank

Up to 7.25%

Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the bank’s discretion. 

Bank FD Interest Rates for Senior Citizens

This table displays some of the highest interest rates on deposits under ₹2 Crores for fixed deposits for senior citizens in 2024.

Bank Name

Interest Rate (p.a.)

Axis Bank

Up to 7.75%

ICICI Bank

Up to 7.65%

HDFC Bank

Up to 7.75%

Canara Bank

Up to 7.75%

Kotak Mahindra Bank

Up to 7.80%

SBI

Up to 7.50%

Bank of Baroda

Up to 7.75%

Bandhan Bank

Up to 8.35%

IDBI Bank

Up to 7.50%

IDFC Bank

Up to 8.25%

Indian Bank

Up to 7.75%

IndusInd Bank

Up to 8.25%

Punjab National Bank

Up to 7.50%

Union Bank

Up to 7.75%

Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the bank’s discretion. 

NBFC/HFC FD Interest Rates for Non-senior Citizens

Below are the maximum interest rates for some of the NBFCs for non-senior citizens on deposits under ₹2 Crores. You can compare and choose your most preferred one while booking an FD:

NBFC Name

Maximum Interest Rate

Bajaj Finance

Up to 8.60%

Mahindra Finance

Up to 8.05%

Shriram Finance

Up to 8.60%

Muthoot Capital

Up to 8.50%

Punjab National Bank Housing

Up to 7.85%

LIC Housing Finance

Up to 7.25%

Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the NBFC/bank’s discretion. 

NBFC/HFC FD Interest Rates for Senior Citizens

Here are the FD interest rates offered by some of the NBFCs/HFCs for senior citizens on deposits under ₹2 Crores:

NBFC Name

Maximum Interest Rate

Bajaj Finance

Up to 8.85%

Mahindra Finance

Up to 8.30%

Shriram Finance

Up to 9.10%

Muthoot Capital

Up to 9.00%

PNB Housing Finance

Up to 8.15%

LIC Housing Finance

Up to 7.50%

Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the NBFC/bank’s discretion. 

FD Interest Rates Offered by Leading Foreign Banks

Many foreign banks operate in India and offer competitive interest rates on fixed deposits, making them an attractive investment option. Check the table for some of FD interest rates offered on deposits under ₹2 Crores.

Bank

Interest Rate

Standard Chartered Bank

Up to 8.00%

DBS Bank

Up to 8.00%

HSBC

Up to 7.75%

Barclays Bank

Up to 6.36%

Deutsche Bank

Up to 8.00%

SBM Bank

Up to 8.25%

Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the NBFC/bank’s discretion. 

Types of FD Interest Rates in India

Generally, there are 2 types of fixed deposit interest rates offered by issuers. These are – fixed and floating (flexi) FD interest rates. 

1. Fixed interest rate 

Fixed FD interest rates remain the same throughout the entire duration of your investment.  As a result, the interest earned on your investment is also fixed and predictable. Hence, you must compare FD rates across all banks and NBFCs before selecting an FD plan. 

These FD interest rates are ideal if you think the current rates may decline or stay unchanged throughout your tenor. This is because any impact on interest rates has a direct impact on your returns.

2. Floating interest rate  

The interest rate fluctuates during your investment tenor, impacting returns based on market changes. Compared to fixed-interest FDs, returns may vary. A positive market trend can increase FD rates and returns, while a negative trend may reduce both. 

 

This deposit enables you to benefit from interest rate changes without closing and rebooking FDs. Floating interest rates are suitable if you anticipate an upward market trend, allowing you to maximise returns during economic upswings.

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Tax-saver FD Interest Rates in 2024

Under Section 80C of the Income Tax Act, 1961, you can claim tax deductions of up to ₹1.50 Lakhs per financial year on your tax-saver FD. Compare the interest rates offered by different FD issuers to make an informed decision: 

Bank/NBFC

Interest Rate (p.a.)

Suryoday Small Finance Bank

8.75%

AU Small Finance Bank

8.50%

RBL Bank

8.00%

Canara Bank

7.30%

Disclaimer: The above-mentioned rates are effective as of 9th January 2024, and are subject to change as per the NBFC/bank’s discretion. 

 

When you invest in FD, it is crucial that you estimate your returns, as it will help you choose among the best fixed deposit rates. On Bajaj Markets, browse fixed deposits from various NBFCs and banks offering interest rates of up to 8.85% p.a. The FD booking process is simple and 100% digital. 

Disclaimer

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.

FAQs

What are fixed deposit interest rates?

Fixed deposit (FD) interest rates are the percentage returns you earn on your deposit for a predetermined period. Banks and NBFCs offer different rates based on the deposit amount, tenor, and lending rates.

 

How are FD interest rates calculated?

The interest is calculated based on the principal amount (your deposit), the interest rate, and the tenor (duration). It can be compounded annually, quarterly, or monthly. 

Here's the formula to calculate the maturity amount an FD:

M = P + (P x r x t)/100

 

How can I get the highest FD interest rate?

Here are a few tips you could follow to get the highest interest rate possible on an FD: 

  • Opt for longer tenors generally offer higher rates

  • Look for special offers or senior citizen schemes for additional benefits

  • Compare rates across different issuers before making a decision

Are FD interest rates taxable?

Yes, interest income from fixed deposits is considered as ‘Income from Other Sources’ and is fully taxable. However, only interest income exceeding ₹40,000 (₹50,000 for senior citizens) is subjected to taxes.

What are tax-saving FDs?

Tax-saver FDs have a lock-in period of five years and qualify for tax deductions of up to ₹1.50 Lakhs under Section 80C of the Income Tax Act, 1961. However, their interest rates are typically lower than regular FDs.

What is the minimum deposit amount for an FD?

Minimum deposit amounts vary between banks and NBFCs and often range from ₹1,000 to ₹5,000.

Can I withdraw money from my FD before maturity?

Early withdrawals are usually allowed at the cost of penalty charges. The penalty amount varies depending on the bank and the remaining tenor.

What happens to my FD when it matures?

You can choose to receive the matured principal amount and accumulated interest or reinvest the entire amount for another term.

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