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.
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 offered by leading partners of Bajaj Markets.
Bajaj Finance |
PNB Housing Finance |
Mahindra Finance |
|||
Tenor (in months) |
Interest rates (in p.a.) |
Tenor (in months) |
Interest rates (in p.a.) |
Tenor (in months) |
Interest rates (in p.a.) |
12-14 |
7.40% |
12-23 |
7.35% |
12 |
7.40% |
15-23 |
7.50% |
24-35 |
7.00% |
24 |
7.60% |
24 |
7.55% |
36-47 |
7.70% |
36 |
7.70% |
25-35 |
7.35% |
48-59 |
7.40% |
48 |
7.75% |
36-60 |
8.05% |
60-71 |
7.50% |
60 |
7.75% |
61-84 |
- |
72-84 |
7.40% |
61-84 |
- |
120 |
- |
120 |
7.40% |
120 |
- |
The table below gives you a comparison of FD interest rates across different tenors.
Bajaj Finance |
PNB Housing Finance |
Mahindra Finance |
|||
Tenor (in months) |
Interest rates (in p.a.) |
Tenor (in months) |
Interest rates (in p.a.) |
Tenor (in months) |
Interest rates (in p.a.) |
12-14 |
7.65% |
12-23 |
7.60% |
12 |
7.65% |
15-23 |
7.75% |
24-35 |
7.25% |
24 |
7.85% |
24 |
7.80% |
36-47 |
7.95% |
36 |
7.95% |
25-35 |
7.60% |
48-59 |
7.65% |
48 |
8.00% |
36-60 |
8.30% |
60-71 |
7.75% |
60 |
8.00% |
61-84 |
- |
72-84 |
7.65% |
61-84 |
- |
120 |
- |
120 |
7.65% |
120 |
- |
This table showcases some of the highest FD interest rates offered in banks for non-senior citizens in 2023.
Bank Name |
Maximum Interest Rate |
Axis Bank |
7.26% |
ICICI Bank |
7.25% |
HDFC Bank |
7.10% |
Kotak Mahindra Bank |
7.20% |
Canara Bank |
7.25% |
SBI |
7.10% |
YES Bank |
7.75% |
Bank of Baroda |
7.05% |
This table displays the highest interest rates 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 |
8.01% |
ICICI Bank |
7.50% |
HDFC Bank |
7.75% |
Canara Bank |
7.75% |
Kotak Mahindra Bank |
7.50% |
SBI |
7.60% |
YES Bank |
8.25% |
Bank of Baroda |
7.55% |
Here is a comparison of some of the highest FD interest rates offered by banks and NBFCs in India 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% |
ICICI Bank |
6.70% |
7.00% |
7.00% |
6.90% |
6.90% |
Bajaj Finance |
7.40% |
7.55% |
8.05% |
8.05% |
-- |
Mahindra Finance |
7.40% |
7.60% |
7.70% |
7.75% |
-- |
SBI Bank |
6.80% |
7.00% |
6.50% |
6.50% |
– |
Axis Bank |
6.75% |
7.26% |
7.00% |
7.00% |
– |
Bank of Baroda |
6.75% |
6.75% |
6.50% |
6.50% |
6.50% |
Kotak Mahindra Bank |
7.20% |
7.00% |
6.50% |
6.20% |
6.20% |
YES Bank |
7.25% |
7.50% |
7.00% |
7.00% |
7.00% |
Canara Bank |
7.00% |
6.85% |
6.80% |
6.70% |
6.70% |
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.
Name of the Bank |
Interest Rates (%p.a.) |
Standard Chartered Bank |
7.35% |
DBS Bank |
7.50% |
HSBC |
7.50% |
Barclays Bank |
6.05% |
Deutsche Bank |
7.75% |
SBM Bank |
7.75% |
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 rate.
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 |
8.00% |
8.50% |
IDBI Bank |
6.50% |
7.00% |
IndusInd Bank |
7.25% |
7.75% |
IDFC First Bank |
7.00% |
7.50% |
RBL Bank |
7.00% |
7.50% |
State Bank of India |
6.50% |
7.50% |
HDFC Bank |
7.00% |
7.50% |
ICICI Bank |
7.00% |
7.50% |
AU Small Finance Bank |
7.20% |
7.70% |
YES Bank |
6.75% |
7.05% |
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.
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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 0.50% on your interest rates, which can benefit you.
Yes, since fixed deposits are alternate sources of income, the Income Tax Act of 1961 mandates a taxation levy of 10% to 20% on all FD returns above ₹40,000 (₹50,000 for senior citizens). Your FD interest can be exempted from tax obligations only if your annual income, including fixed deposit returns is under the taxable limit, i.e., falling in 0% tax liability slab.
To maximise FD returns, choose a tenor with the highest interest rate and compare the best FD interest rates in India offered by different banks, NBFCs, and institutions. Consider opting for cumulative FDs over non-cumulative ones, and use ladder investment options to invest in FDs with different maturity dates for steady returns.
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.
Senior citizens are eligible for an extra 0.25% interest rate on their fixed deposits. The increase in interest rates can vary by FD type and issuer. For example, a regular 6.80% FD interest rate can become 7.05% for senior citizens.
Some of the top banks offering highest fixed deposit rates, 7% p.a. and more, are: DCB Bank, IndusInd Bank, HDFC Bank, IDBI Bank, SBI, RBL Bank and more.
Presently, India is offering some of the highest fixed deposit (FD) interest rates. Some of the best FD rates in banks and NBFCs you can choose from include Bajaj Finance, Mahindra Finance, Axis Bank, IndusInd Bank, DCB Bank, Punjab National Bank, etc.
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.