A Fixed Deposit or FD, is the most common type of deposit scheme offered by all banks and many non-banking financial institutions. This scheme has been prevalent for generations across India. There is not a single household in India where an individual has not deposited their savings in an FD. Under a Fixed Deposit, you are required to deposit a single lumpsum amount for a specified time period at a predefined rate of return i.e. interest rate. Upon maturity of the FD, you can either continue to remain invested or withdraw the final amount. Tax on FD is applicable as Tax Deducted at Source/TDS. Banks usually deduct TDS on an FD interest amount greater than ₹10,000 per year. The rate of tax deduction is 10% on interest income, provided your PAN details are linked with the FD account. Failure in providing your PAN details will lead to a 20% deduction on interest income. The rate of interest is based on the RBI rates, so if you are looking to deposit a few of your savings in an FD, it is better that you compare the interest rates offered by different banks. Mentioned below are different lists for the same. Note: The Rate of Interest may change without notice and the same is at the discretion of the banks. Kindly check the same on actual Bank website before making an investment in the same.
| Name of Bank | FD Interest Rates | Tenure (Min-Max) |
|---|---|---|
| IDFC Bank | 4.00%-8.25% | 7 days to 10 years |
| Lakshmi Vilas Bank | 4.50%-7.50% | 7 days to 20 months |
| DCB Bank | 4.00%-7.75% | 7 days to 10 years |
| Ratnakar Bank | 5.00%-7.50% | 7 days to 20 years |
| Deutsche Bank | 7.50%-8.25% | 1 year to 5 years |
| Bandhan Bank | 3.50%-7.40% | 7 days to 10 years |
| Karur Vysya Bank | 5.00%-7.00% | 7 days to above 3 years |
| Tamil Mercantile Bank | 5.00%-7.15% | 15 days to above 3 years |
| Karnataka Bank | 3.50%-7.30% | 7 days to 10 years |
| HDFC Bank | 3.50%-7.25% | 7 days to 10 years |
| IndusInd Bank | 3.50%-7.65% | 7 days to above 5 years |
| Oriental Bank of Commerce | 5.75%-6.75% | 7 days to 10 years |
| Yes Bank | 5.00%-7.10% | 7 days to 10 years |
| Union Bank | 5.00%-6.85% | 7 days to 10 years |
| Axis Bank | 3.50%-7.45% | 7 days to 10 years |
| ICICI Bank | 4.00%-7.25% | 7 days to 10 years |
| IDBI Bank | 5.75%-6.85% | 15 days to 20 years |
| Kotak Mahindra Bank | 3.50%-7.30% | 7 days to 10 years |
| Vijaya Bank | 5.00%-6.80% | 7 days to above 5 years |
| Punjab National Bank | 5.70%-6.75% | 7 days to 10 years |
| Bank of Baroda | 4.25%-6.75% | 7 days to 10 years |
| State Bank of India | 5.75%-6.85% | 7 days to 10 years |
| Jana Small Finance Bank | 6.00%-8.50% | 7 days to 10 years |
| City Union Bank | 6.25%-7.10% | 7 days to 10 years |
| Name of Bank | FD Interest Rates | Tenure (Min-Max) |
|---|---|---|
| Axis Bank | 3.50%-7% | |
| Bank of Baroda | 4.50%-6.70% | |
| Bank of India | 5.25%-6.35% | |
| Canara Bank | 5.75%-6.20% | |
| Central Bank of India | 4.80%-6.55% | |
| HDFC Bank | 3.50%-6.50% | |
| ICICI Bank | 4.00%-7.00% | |
| IDBI Bank | 6.25% | |
| State Bank of India | 5.75%-6.85% | |
| Yes Bank | 5.00%-7.25% |
| Name of Bank | FD Interest Rates | Tenure (Min-Max) |
|---|---|---|
| IDFC Bank | 4.00% to 7.00% | 7 days to less than 1 year |
| Bandhan Bank | 3.50% to 6.80% | 7 days to less than 1 year |
| Union Bank | 5.00% to 6.75% | 7 days to less than 1 year |
| Lakshmi Vilas Bank | 4.50% to 6.75% | 7 days to less than 1 year |
| Yes Bank | 5.00% to 6.70% | 7 days to less than 1 year |
| ICICI Bank | 4.00% to 6.50% | 7 days to less than 1 year |
| Name of Bank | FD Interest Rates | Tenure (Min-Max) |
|---|---|---|
| IDFC Bank | 8% | 366 days |
| RBL Bank | 7.15% to 7.85% | 1 year to 5 years |
| Yes Bank | 7.40% | 3 months to less than 6 months |
| ICICI Bank | 7.25% | 390 days to 2 years |
| HDFC Bank | 7.50% | 1 year 17 days to 5 years |
| PNB | 7.25% | More than 1 year to 3 years |
| BOB | 7.05% | 366 days to 400 days |
| SBI | 7.20% | 3 years to less than 5 years |
A tax saver FD is a type of FD under which a account holder can claim tax deductions of up to ₹1,50,000 under Section 80C of the Income Tax Act, 1961. Unlike a standard FD, this comes with a minimum lock-in period of 5 years and you cannot avail a loan/overdraft under this FD.
| Name of Bank | FD Interest Rates | Tenure(Min-Max) |
|---|---|---|
| Deutsche Bank | 8.00% | |
| IDFC Bank | 7.20% | |
| DCB | 7.25% | |
| Karur Vysya Bank | 7.00% | |
| Standard Chartered Bank | 6.50% | |
| Allahabad Bank | 6.50% | |
| Bank of Baroda | 7.00% | |
| Andhra Bank | 6.50% |
| COMPANY | RATING | 1 YEAR | 2 YEAR | 3 YEAR | 4 YEAR | 5 YEAR | Min. Amount (Rs.) |
|---|---|---|---|---|---|---|---|
| Bajaj Finance Ltd | FAAA By CRISIL, MAAA By ICRA | 8 | 8.15 | 8.75 | 8 | 7.98 | 6.25 |
| HDFC -Premium Deposits | CRISIL FAAA/Stable | 8.03(15M) | 8.14(22M) | 8.08(30M) | 8.14(44M) | - | 20000 |
| HDFC Ltd. | CRISIL FAAA/Stable | 7.98 | 7.98 | 7.98 | 7.98 | 7.98 | 20000 |
| LIC Housing Finance Ltd. | CRISIL- FAAA | 8.15 | 8.15(18 M) 8.20(24M) | 8.25 | - | 8.3 | 10000 |
| Mahindra and Mahindra Financial Services Ltd | CRISIL- FAAA | 8.1 | 8.5 | 8.8 | 8.8 | 8.8 | 10000 |
| PNB Housing Finance | FAAA/Stable by CRISIL | 8.3 | 8.3 | 8.4 | 8.4 | 8.45 | 20000 |
| Shriram City Union Finance Ltd | CRISIL-FAAA+ & ICRA-MAA+ | 8.25 | 8.5 | 9 | 9 | 9.25 | 5000 |
| Shriram Transport Finance UNNATI Scheme | CRISIL-FAAA & ICRA-MAA+ | 8.25 | 8.5 | 9 | 9 | 9.25 | 10000 |
Note: The Rate of Interest may change without notice and the same is at the discretion of company. Kindly check the same on actual company website before making an investment in the same.
The Fixed Deposit interest calculator or an FD calculator is a user friendly online calculator which helps you calculate the interest earned on your FD. It is available free of cost on every bank’s website. All you have to do is type the requested principal and maturity amount as input and it will automatically calculate the respective interest earned on the deposit.
Similar to the Fixed Deposit Interest Calculator, this functional tool is online and free of cost. A Maturity Deposit Calculator is used to calculate the maturity amount. The maturity amount is calculated on the basis of principal amount, rate of interest and time period.
The formula for calculating fixed deposit interest is SI=PTR/100, where P is the principal amount, T is the time period, R is the rate of interest and SI is the simple interest earned. E.g. A principal amount of ₹10,000 is invested for 1 year at the rate of 8%. Based on the formula, SI=10000x1x8/100, which is ₹800.
1 year FDs are suitable for depositors who are looking for a short time investment horizon.
| Name of Bank | FD Interest Rates |
|---|---|
| Shriram City Union | |
| RBL Bank | |
| Bandhan Bank | |
| Mahindra Finance | |
| Shriram Transport Finance | |
| India Post Office | |
| Sundaram Finance | |
| LIC Housing | |
| ICICI Home Finance | |
| IndusInd Bank |
This is a medium long tenure suitable for depositors with lease contracts which have high penalty values.
| Name of Bank | FD Interest Rates |
|---|---|
| Shriram City Union | |
| RBL Bank | |
| Shriram Transport Finance | |
| India Post Office | |
| LIC Housing Finance | |
| Bandhan Bank | |
| Sundaram Finance | |
| Mahindra Finance | |
| Gruh Finance Limited | |
| ICICI Housing Finance |
This is one of the longest tenure FDs which comes with the benefit of Tax-saving.
| Name of Bank | FD Interest Rates |
|---|---|
| Shriram City Union | |
| RBL Bank | |
| Deutsche Bank | |
| Shriram Transport Finance | |
| LIC Housing Finance | |
| India Post Office | |
| Mahindra Finance | |
| PNB Housing Finance | |
| TMC Bank | |
| ICICI Home Finance |
As mentioned before, the interest earned on an FD is subject to TDS. TDS is applicable to the interest earned on the deposit amount, if it exceeds more than ₹10,000. The applicable tax rate is 10% of the interest amount more than ₹10,000.
You can avail a loan against your FD. The limit is usually 90% of the FD amount and the interest charged is a percentage higher than the one of the fixed deposit. The upper limit of the loan tenure cannot exceed 5 years.
All FDs are secured via an insurance under the Deposit Insurance and Credit Guarantee Corporation (DICGC), in collaboration with the Reserve Bank of India, with a cover amount upto Rs. 1 Lakh. This is applicable in case the bank is unable to repay your FD amount.
Banks club the interest earned from FDs and RDs under one umbrella. The interest earned from all bank FDs will be clubbed for the purpose of tax deduction through PAN.
In case the interest earned is less than ₹10,000, the depositor is required to submit form 15G/15H as a self-declaration. This will ease the process of tax claiming refund while filing income tax returns.
Recommended Read: Bank Fixed Deposit Rates are Falling! Are Post Office Saving Schemes a Better Option?
Are fixed deposits a good investment?
Yes, they are a suitable option for investors who are looking for a short term investment horizon with a fixed rate of return.
Are fixed deposits safe?
Yes, these are one of the safest investment schemes which come with guaranteed returns and least risk.
Are fixed deposits taxable?
Yes, FDs are subject to 10% TDS, if the interest earned from the deposits is above ₹10,000/-
Can I add money to fixed deposit?
No, the only mode of investment is via a single lump sum amount at the commencement of the FD.
Can I break a term deposit?
Yes, in case of an emergency, you are allowed to break a FD before the maturity date. Breaking an FD will attract penalty charges from the bank.
Can I break my 5 years fixed deposit?
Yes, you can break your 5 years FD. If you do so, you will not be able to claim tax deduction as per Sec 80C of the Income Tax Act, 1961.
Can I close FD before maturity?
You can close your FD at any given point, but the interest will be based on the active tenure of the FD. Also, banks levy charges for premature closure of an FD.
Can I have multiple fixed deposits?
Yes, you can have multiple FDs across different or the same bank.
Can I withdraw my fixed deposit?
Yes, you can withdraw from your FD at any given point.
Can we open a fixed deposit without bank account?
Yes, you can open an FD at the post office without the need of opening a bank account.
Can we get loan on fixed deposit?
Yes, you can avail a loan of up to 90% of the FD amount.
Can we get monthly interest on fixed deposits?
Yes, you can receive interest on an monthly basis on a fixed deposit.
How can I double my money in bank?
Opening a fixed deposit for a longer tenure can help in doubling your money. You will have to check the interest rate and make a deposit accordingly.
How can I get early withdrawal from fixed deposit?
You simply need to place a service request regarding premature withdrawal from your fixed deposit. You can do this online via net banking.
How can I invest in FD?
You can simply visit any bank and open an FD account by depositing the desired minimum amount. You can also open an FD with your respective net banking account.
How can I open a fixed deposit account?
To open a fixed deposit, you simply need to visit the bank with a self-attested copy of your PAN card and deposit the desired amount. You can select the tenure of investment as well. If you already have a bank account, you can open an FD online via netbanking.
How does a fixed deposit work?
A fixed deposit is a investment scheme which keeps your money invested for a specific time period at a predefined rate of return. You can withdraw the money once the FD reach a maturity date.
How much we can invest in fixed deposit?
The minimum deposit amount ranges from ₹1,000 to ₹10,000 and varies from bank to bank. There is no upper limit.
Is 5 year FD tax free?
Yes, under a 5 year tax free FD, you can avail tax deductions on principal amount of up to ₹1,50,000 as per Sec 80C of the Income Tax Act, 1961.
Is fixed deposit an asset?
Yes, this an investment made from your savings which can be used for various purposes and meeting life goals.
Is Fixed Deposit better than mutual fund?
In terms of risk, FD is much safer in comparison to a mutual fund. In comparison to returns, mutual funds take the upper hand as they are market-linked.
Is Yes Bank safe for FD?
Yes, all bank deposits are safe and operated under the RBI guidelines.
What are the advantages of fixed deposit?
There are multiple advantages of FDs, the most important is that it comes with guaranteed returns at a fixed rate of return.
What are the features of fixed deposit account?
The most prominent feature of an FD is that it comes with guaranteed returns at a fixed rate of return.
What documents are needed for opening a fixed deposit account with a bank?
You simply need to submit a self-attested photocopy of your PAN card and address proof to open a fixed account with any bank. If you are already an account holder, you do not need any documents.
What happens if an FD is broken before maturity?
Banks will charge you a premature withdrawal penalty in case an FD is broken before maturity.
What happens to FD after maturity?
On maturity, as per the maturity instructions, action is taken like depositing the proceeds in the linked savings account or auto renewal or renewal of principal and payout of interest, etc.
What is the difference between FD and RD?
The primary difference between an FD and RD is that, in the former you are required to submit a single one time lump sum amount, while in the latter you can invest a fixed amount per month.
