Are you struggling among yourself to figure out which bank is offering the highest interest rates on FD? Don’t fret anymore as we are with you in this and provide information on What is meant by Fixed Deposit, Payment Options in FD, FD Interest Rates Offered by Top Banks, Factors affecting the Fixed Deposit Interests, How to Calculate Fixed Deposit Interests, etc. Compare the Latest FD Rates of Renowned Banks from the tables below and make a decision regarding your new fixed deposit account opening or renewing an existing one.
- What is meant by Fixed Deposit?
- Interest Payment Options in Fixed Deposits
- FD Interest Rates of All Banks
- FD Interest Rates of Popular Banks in India below 2 Crores
- Highest FD Interest Rates Offering Banks
- Factors that affect the Fixed Deposit Interest Rates
- How to Calculate Fixed Deposit Interest Rates?
- Top 10 Tax Saver FD Rates Offering Banks
- CRSIL & ICRA Credit Rating for Corporate Fixed Deposits
- Which Bank Offers Highest FD Interest Rates?
- How FD Interest Rates are Calculated?
- What is SBI FD Interest Rates?
- Why FD Rates are going down?
- Is FD a good Investment?
What is meant by Fixed Deposit?
Fixed deposit is financial assistance provided by the Banks or NFBCs to investors and offers higher interest rates compared to regular savings accounts until the maturity date. Since the name itself suggests the entire amount remains fixed for the entire tenure and banks will not allow you to withdraw the funds without maturity. If you want to withdraw the fixed deposit amount prematurely then the bank allows you to take the funds by paying certain penalty.
A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date.
Interest Payment Options in Fixed Deposits
You can choose from the 2 interest payment options available. One is the Cumulative Option wherein you will receive the entire interest after the completion of the fixed deposit tenure. The other is a non-cumulative option where you will receive the interest accumulated on monthly or quarterly payout options as per your requirement.
FD Interest Rates of All Banks
| Bank | Tenure | FD Interest Rate (p.a.) |
|---|---|---|
| Abu Dhabi Commercial Bank | 12 Months | 7.30% |
| Suryoday Small Finance Bank | 12 Months | 6.50% |
| Esaf Small Finance Bank | 12 Months | 6.25% |
| Utkarsh Small Finance Bank | 12 Months | 6.25% |
| Ujjivan Small Finance Bank | 12 Months | 6.00% |
| Indusind Bank | 12 Months | 6.00% |
| Yes Bank | 12 Months | 6.00% |
| Fincare Small Finance Bank Ltd | 12 Months | 6.00% |
| Capital Small Finance Bank | 12 Months | 6.00% |
| Equitas Small Finance Bank | 12 Months | 5.85% |
| A B Bank | 12 Months | 5.75% |
| Dcb Bank | 12 Months | 5.55% |
| Tamilnad Mercantile Bank | 12 Months | 5.50% |
| Bandhan Bank | 12 Months | 5.50% |
| Standard Chartered Bank | 12 Months | 5.30% |
| South Indian Bank | 12 Months | 5.20% |
| Dhanalakshmi Bank | 12 Months | 5.15% |
| Karur Vysya Bank | 12 Months | 5.15% |
| Indian Overseas Bank | 12 Months | 5.15% |
| Canara Bank | 12 Months | 5.10% |
| Jammu And Kashmir Bank | 12 Months | 5.10% |
| Federal Bank | 12 Months | 5.10% |
| The Nainital Bank | 12 Months | 5.10% |
| Karnataka Bank | 12 Months | 5.10% |
| Syndicate Bank | 12 Months | 5.10% |
| Axis Bank | 12 Months | 5.10% |
| Punjab And Sind Bank | 12 Months | 5.05% |
| Idbi Bank | 12 Months | 5.05% |
| State Bank Of Mysore | 12 Months | 5.00% |
| Corporation Bank | 12 Months | 5.00% |
* Note: All the Interest Rates offered by banks are given as of 1st December 2021. Kindly, go through the terms and conditions before opening one account.*
FD Interest Rates of Popular Banks in India below 2 Crores
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a) |
|---|---|---|
| State Bank of India FD | 2.90% to 5.40% | 3.40% to 6.20% |
| ICICI Bank FD | 2.50% to 5.50% | 3.00% to 6.30% |
| HDFC Bank FD | 2.50% to 5.50% | 3.00% to 6.25% |
| Punjab National Bank FD | 2.90% to 5.25% | 3.50% to 5.75% |
| Canara Bank FD | 2.90% to 5.25% | 2.90% to 5.75% |
| Axis Bank FD | 2.50% to 5.75% | 2.50% to 6.50% |
| Bank of Baroda FD | 2.80% to 5.25% | 3.30% to 6.25% |
| IDFC Bank FD | 2.50% to 5.25% | 3.00% to 5.75% |
| Bank of India FD | 2.85% to 5.05% | 3.35% to 5.55% |
| Punjab and Sind Bank FD | 3.00% to 5.30% | 3.50% to 5.80% |
Highest FD Interest Rates Offering Banks
Here is the list of banks offering higher interest rates on fixed deposits. Have a glance at them and get acquainted where you can get pretty good amounts for your FDs. They are as under
- Yes Bank offers an interest rate of 6.50% for a tenure of 5 years and above making it the highest interest rate offering bank.
- Axis Bank offers the second-highest FD Interest Rates i.e. 5.75% for a tenure of 5 years and above. In the case of Senior Citizens, the Interest Rates can vary up to 6.50%.
- Both HDFC and ICICI are the third-highest interest rates offering banks for a tenure of 5 years and above.
- Next is SBI and it offers an interest rate of 5.40% for a tenure of 5 years and above.
Read More: RD Interest Rates
Factors that affect the Fixed Deposit Interest Rates
There are several factors that are considered in the calculation of Fixed Deposit Interest Rates and they are as follows
Deposit Tenure: In the case of lower tenure deposits the interest rates are lower and for medium or high range tenure the interest rates will be higher.
Deposit Amount: Usually, higher deposit amounts can yield you higher interest rates. For Example, Bulk Deposits exceeding an amount of 1 crore or so will give you high interest.
Depositor Type: Senior citizens will get around 0.25% – 0.50% additional interest rate on fixed deposits.
How to Calculate Fixed Deposit Interest Rates?
Fixed Deposit Interest Rate Calculation involves several factors such as tenure, deposit amount, compounding frequency, rate of interest, taxation, and a lot more. You can calculate returns on your investment by doing manual calculations using the formula I + PTR/100 or simply typing the necessary input fields like principal, interest rate, compounding frequency, or time into the FD Calculator and know the interest amount fetched.
Top 10 Tax Saver FD Rates Offering Banks
| Name of the Tax Saving FD | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| SBI Bank Tax Saving FD | 5.30% | 5.80% |
| IndusInd Bank Tax Saver Scheme | 6.00% | 6.50% |
| HDFC Bank Tax Saving FD | 5.35% | 5.85% |
| Canara Bank Tax Saving FD | 5.25% | 5.75% |
| Axis Bank Tax Saving FD | 5.40% | 6.05% |
| Bank of Baroda Tax Saving FD | 5.25% | 5.75% |
| IDFC Bank Tax Saving FD | 5.25% | 5.75% |
| Union Bank of India Tax Saving FD | 5.40% | 5.90% |
| PNB Tax Saving FD | 5.25% | 5.75% |
| IDFC First Bank | 5.25% | 5.75% |
| Punjab and Sind Bank | 5.30% | 5.80% |
CRSIL & ICRA Credit Rating for Corporate Fixed Deposits
CRSIL Credit Ratings for Fixed deposits mean the following standards. All the Ratings provided will help you decide the consistency, stability, and credibility of the companies that provide FDs. Check them beforehand and open an account.
| Rating | Standard |
|---|---|
| FAAA | Highest safety |
| FAA | High safety |
| FA | Adequate safety |
| FB | Inadequate safety |
| FC | High risk |
| FD | Default |
| NM | Not Meaningful |
ICRA Credit Rating for the fixed deposits fall under the following categories and they are as such
| Rating | Standard |
|---|---|
| MAAA | Highest credit quality |
| MAA | High credit quality |
| MA | Adequate credit quality |
| MB | Inadequate credit quality |
| MC | Risk-prone credit quality |
| MD | Lowest credit quality |
FAQs on Fixed Deposit Interest Rates
1. Which Bank Offers Highest FD Interest Rates?
Yes Bank offers the highest interest rates on Fixed Deposits i.e. 6.50% for a tenure of 5 years and above.
2. How FD Interest Rates are Calculated?
Fixed Deposit Interest Rates can be calculated manually by using the formula I = PTR/100 where P is the Principal, R is the Rate of Interest, T is the Time Duration.
3. What is SBI FD Interest Rates?
SBI offers an interest of 5.30% for general citizens and for senior citizens it offers 5.80%.
4. Why FD Rates are going down?
Central Banks across the World are cutting down rates due to fragile economic conditions so that they can simulate the economy.
Investing in Fixed Deposits is one of the safest investment options available out there. The interest earned on the fixed deposits mak it a better option.