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
| Maximum Interest Rate
| Maximum Tenor
| Minimum Deposit Amount
|
|
---|---|---|---|---|
Bajaj Finance | 8.60% p.a. | 60 Months | ₹15,000 | |
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PNB Housing Finance | 8.15% 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 | 8.00% p.a. | 120 Months | ₹10,000 | |
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Ujjivan Small Finance Bank | 8.75% p.a. | 120 Months | ₹1,000 | |
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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. 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.2. Floating interest rate
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 herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circ*mstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsem*nt of any sort.
The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of 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. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.
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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.