Fixed deposits (FDs) are one of the safest investment options available in India. This is because you earn interest income on the amount you deposit at predetermined FD interest rates fixed by NBFCs or banks.
This means you can plan your investments and expect handsome returns with a high degree of certainty. Investing in fixed deposits is an excellent way to park your funds in a productive and profitable manner.
As such, the interest earned through fixed deposits are safe and guaranteed until the date of maturity. However, before you book your FD, it is essential for you to understand the crux of FD rates.
You can also calculate FD interest rates with the help of the handy interest rate calculator provided below:
Understanding the fixed deposit interest rates can help you make informed decisions in choosing the right FD scheme. Here is a comparison of interest rates across different tenors on deposits under ₹2 Crores offered on Bajaj Markets.
Partners |
Tenor |
Interest Rate (p.a.) |
Bajaj Finance |
12 - 60 Months |
Up to 8.35% |
PNB Housing Finance |
12 - 120 Months |
Up to 7.85% |
Mahindra Finance |
12 - 60 Months |
Up to 8.05% |
AU Small Finance Bank |
7 Days - 120 Months |
Up to 8.00% |
YES BANK |
7 Days - 120 Months |
Up to 7.75% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
Partners |
Tenor |
Interest Rate (p.a.) |
Bajaj Finance |
12 - 60 Months |
Up to 8.60% |
PNB Housing Finance |
12 - 120 Months |
Up to 8.15% |
Mahindra Finance |
12 - 60 Months |
Up to 8.30% |
AU Small Finance Bank |
7 Days - 120 Months |
Up to 8.50% |
YES BANK |
7 Days - 120 Months |
Up to 8.25% |
Disclaimer: The above-mentioned rates effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
This table showcases some of the highest FD interest rates offered by banks on deposits under ₹2 Crores for non-senior citizens in 2023.
Bank Name |
Maximum Interest Rate (p.a.) |
Axis Bank |
Up to 7.10% |
AU Small Finance Bank |
Up to 8.00% |
ICICI Bank |
Up to 7.25% |
YES Bank |
Up to 7.75% |
HDFC Bank |
Up to 7.25% |
Canara Bank |
Up to 7.25% |
Kotak Mahindra Bank |
Up to 7.25% |
SBI |
Up to 7.10% |
Bank of Baroda |
Up to 7.25% |
Bandhan Bank |
Up to 7.85% |
IDBI Bank |
Up to 6.80% |
IDFC Bank |
Up to 7.50% |
Indian Bank |
Up to 7.25% |
IndusInd Bank |
Up to 7.50% |
Punjab National Bank |
Up to 7.25% |
Union Bank |
Up to 7.00% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
This table displays some of the highest interest rates on deposits under ₹2 Crores for fixed deposits for senior citizens in 2023. If you are a senior citizen, you can compare these rates to assess which bank offers the best interest rate for fixed deposit.
Bank Name |
Maximum Interest Rate |
Axis Bank |
Up to 7.75% |
AU Small Finance Bank |
Up to 8.50% |
ICICI Bank |
Up to 7.25% |
YES Bank |
Up to 8.25% |
HDFC Bank |
Up to 7.75% |
Canara Bank |
Up to 7.75% |
Kotak Mahindra Bank |
Up to 7.75% |
SBI |
Up to 7.60% |
Bank of Baroda |
Up to 7.75% |
Bandhan Bank |
Up to 8.35% |
IDBI Bank |
Up to 7.30% |
IDFC Bank |
Up to 8.00% |
Indian Bank |
Up to 7.75% |
IndusInd Bank |
Up to 8.25% |
Punjab National Bank |
Up to 7.75% |
Union Bank |
Up to 7.50% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
Below are the maximum interest rates for some of the top 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 8.35% |
Mahindra Finance |
Up to 8.05% |
Shriram Finance |
Up to 8.50% |
Muthoot Capital |
Up to 7.25% |
Punjab National Bank Housing |
Up to 7.85% |
LIC Housing Finance |
Up to 7.75% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
Here are the FD interest rates offered by some of the top NBFCs/HFCs for senior citizens on deposits under ₹2 Crores:
NBFC/HFC Name |
Maximum Interest Rate |
Bajaj Finance |
Up to 8.60% |
Mahindra Finance |
Up to 8.30% |
Shriram Finance |
Up to 9.00% |
Muthoot Capital |
Up to 7.50% |
PNB Housing Finance |
Up to 8.15% |
LIC Housing Finance |
Up to 8.00% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
Here is a comparison of some of the highest FD interest rates offered by banks and NBFCs on deposits under ₹2 Crores for regular citizens for different tenors ranging from 1 year to 10 years.
Banks/NBFCs |
1 Year |
2 Year |
3 Year |
5 Year |
10 Year |
HDFC Bank |
6.60% |
7.00% |
7.00% |
7.00% |
7.00% |
AU Small Finance Bank |
6.75% |
7.50% |
8.00% |
7.25% |
7.25% |
ICICI Bank |
6.70% |
7.10% |
7.00% |
7.00% |
6.90% |
Bajaj Finance |
7.40% |
7.55% |
8.05% |
8.05% |
-- |
Mahindra Finance |
7.40% |
7.75% |
8.05% |
8.05% |
-- |
PNB Housing Finance |
7.45% |
7.00% |
7.85% |
7.65% |
7.40% |
SBI Bank |
6.80% |
7.00% |
6.50% |
6.50% |
– |
Axis Bank |
6.70% |
7.10% |
7.10% |
7.00% |
7.00% |
Bank of Baroda |
6.75% |
6.75% |
7.05% |
6.50% |
6.50% |
Kotak Mahindra Bank |
7.10% |
7.00% |
6.50% |
6.20% |
6.20% |
YES Bank |
7.50% |
7.25% |
7.25% |
7.25% |
7.00% |
Canara Bank |
6.90% |
6.85% |
6.80% |
6.70% |
6.70% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
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 the best FD interest rates offered on deposits under ₹2 Crores.
Name of the Bank |
Interest Rate Offered (%p.a.) |
Standard Chartered Bank |
Up to 7.50% |
DBS Bank |
Up to 7.50% |
HSBC |
Up to 7.25% |
Barclays Bank |
Up to 6.22% |
Deutsche Bank |
Up to 7.75% |
SBM Bank |
Up to 8.25% |
Disclaimer: The above-mentioned rates are effective as of 15 September 2023, and are subject to change as per the NBFC/bank’s discretion.
Just like there are different types of fixed deposits, there are different types of FD interest rates too. Generally, there are 2 types of fixed deposit interest rates offered by issuers. These are – fixed and floating (flexi) FD interest rates.
Here’s how both of the FD rates work and their impact on your returns:
Fixed FD rates remain the same throughout the entire duration of your investment. This means that the interest rate you receive when you invest in an FD remains constant throughout the investment term.
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.
This interest rate fluctuates throughout your investment tenor, resulting in fluctuated returns. The fluctuation in the rate is a direct result of market fluctuations. Hence, compared to the returns from a fixed interest FD, the returns from this interest rate may be higher or lower.
This is because a positive trend in the market will result in increased FD rates and, as such, increased returns. However, a negative trend will result in reduced rates and, as such, reduced returns.
Given this, floating interest rates are a good idea if you think that the current FD interest rates are going to see an upward trend and not a downward trend. This will enable you to ride the economic upswing and maximise returns.
Here are the top 10 tax saver FD interest rates for the year 2023. Tax saver FDs are a popular investment option if you are looking to save on taxes under Section 80C of the Income Tax Act, 1961.
This table compares the interest rates different financial institutions offer and can help you make an informed decision based on your investment goals and tax planning requirements.
Banks |
FD Interest Rates for Non- Senior Citizens |
FD Interest Rates for Senior Citizens |
DCB Bank |
7.40% |
7.90% |
IDBI Bank |
6.50% |
7.00% |
IndusInd Bank |
7.25% |
8.00% |
IDFC First Bank |
7.00% |
7.50% |
RBL Bank |
7.10% |
7.60% |
State Bank of India |
6.50% |
7.00% |
HDFC Bank |
7.00% |
7.50% |
ICICI Bank |
7.00% |
7.50% |
AU Small Finance Bank |
7.25% |
7.75% |
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. At Bajaj Markets, you can choose from a host of FD offers that come with some of the highest FD rates in India, going up to 8.60% per annum.
Senior citizens are eligible for additional rates ranging from 0.25% - 0.75% on their fixed deposits depending on the issuer.
There are many banks/NBFCs which offer attractive interest rates on their fixed deposits. For example, Bajaj Finance FD offers interest rates up to 8.60% p.a. on special tenors. There are also other issues such as YES Bank, Mahindra Finance, AU Small Finance Bank which offer competitive rates on their FDs.
Many top banks offer interest rates of 7% p.a. and above on their fixed deposits. For example, HDFC Bank, IDBI Bank, AU Small Finance Bank, YES Bank and SBI are some of the banks which offer the same.
All issuers determine the interest on their FDs either through simple interest or compounded interest. The calculation of both could be based on the type of FD scheme you chose. You can also use the FD interest calculator to instantly determine the potential returns you could earn on your deposits
There is no particular way of determining if interest rates will increase or decrease in India during 2023. One way to speculate whether the rates will change is by keeping track of the current economic indicators and other key rates such as the repo rates and reverse repo rates.
As of 15 September 2023, HDFC Bank offers regular citizens interest rates of up to 7.25% p.a. on their fixed deposits. Senior citizens, on the other hand, earn an additional 0.50% on their FDs.
The maximum FD interest rate for regular citizens offered by SBI as of 15 September 2023 stands at 7.10% p.a.. In the case of senior citizens, the maximum interest offered by the bank is 0.50% higher than the regular rates, i.e. 7.50% p.a.
Yes, FD interest is taxable. For bank FDs, a TDS of 10% is deducted earning that exceeds ₹40,000 for non-senior citizens and ₹50,000 for senior citizens. In the case of NBFC FDs, TDS of 20% is deducted on the interest earned exceeding ₹5,000. However, for interest earned up to ₹5,000, the TDS applicable remains 10%.
As a senior citizen, you can receive higher fixed deposit interest rates in India than non-senior citizens. You may receive a special increase of 0.25% to 0.75% on your interest rates, which can benefit you.
A higher FD interest rate can be offered if you are above the age of 60 years. Senior citizens receive special hikes, which can range between 0.25% to 0.50%. Additionally, tax deduction limits are adjusted significantly for senior citizens.
FDs have two types of pay-out methods - cumulative and non-cumulative. Cumulative FDs pay the interest at the end of the tenor, while non-cumulative FDs pay the interest on a monthly, quarterly, half-yearly, or yearly basis. Opting for cumulative FDs can yield higher returns as the interest is compounded until maturity.
Yes, multiple FD issuers offer fixed deposits with monthly payouts, enabling you to receive stable monthly cash flow.
FD interest computation depends on the type of FD and the issuer you invest with. Generally speaking, yes, the interest on FD is compounded, especially in cumulative FDs.