Highest Interest Rate on Bank Fixed Deposits (FD) – December 2018

The post lists down the rate of interest on Bank fixed deposits as of December 1, 2018.

You might want to bookmark this page as the FD interest rates would be updated every month. Would help you in better decision making.

Fixed Deposit Highlights:

The good news is IDFC Bank, Union Bank of India and some smaller banks have raised their fixed deposit interest rates substantially in last 1-2 months.

  • Most banks offer FDs for tenure of 7 Days to 10 Years.
  • The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
  • For very short Term Deposits the interest rate is similar to that of Savings Account and so you should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
  • Most banks compound interest quarterly
  • Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is generally 0.5% to 1% more than that offered to FD.
  • TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 10,000 in financial year per bank
  • In case of Senior citizens TDS would be deducted at the rate fo 10%, if the interest income exceeds Rs 50,000
  • There might be penalty for pre-mature withdrawal of Fixed Deposits

Also Read: How SWP in Debt Funds generate higher returns than FD

Fixed Deposit Interest Rates:

The highest interest rate on fixed deposit is offered by Deutsche Bank (5 Years) and IDFC Bank (3 years 1 Day – 10 years) at 8.25%.

For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 5 slabs:

  • FD for Less than 1 Year
  • FD for 1 to 2 years
  • FD for 2 to 5 Years
  • FD for 5 to 10 years
  • FD for More than 10 years

Also Read: 7 High Rated Companies Offering more than Bank Fixed Deposits

We show the highest interest rates on fixed deposits for the above duration buckets. We have also compared the best interest rates on offer by that being offered by State Bank of India (SBI), ICICI Bank and Post Offices.

Click for Best Tax Saving FDs u/s 80C

Interest Rate for FD of Less than 1 Year:

The highest interest rate is offered by Indus Ind Bank (270 days to below 1 years) at 7.50% .

BankDescriptionInterest Rate
Indus Ind Bank270 days to below 1 years7.50%
Ratnakar Bank241 days to 364 days7.35%
Lakshmi Vilas Bank181 – 364 days7.30%
Indus Ind Bank181 days to 269 days7.25%
Kotak Mahindra Bank280 Days to Less than 12 Months7.25%
Ratnakar Bank181 days to 240 days7.25%
Ratnakar Bank91 days to 180 days7.15%
Axis Bank9 months < 1 Year7.10%
HDFC Bank9 mnths 1 day < 1 Year7.10%
Kotak Mahindra Bank180 Days to 270 Days7.10%
Yes Bank6 months to < 9 months7.10%
J&K Bank271 days to less than 1 year7.05%
City Union Bank181 days to 364 days7.00%
DCB Bank6 months to less than 12 months7.00%
IDFC Bank181 – 365 days7.00%
Ratnakar Bank46 days to 90 days7.00%
Repco Bank90 days – 364 days7.00%
Standard Charted Bank181-364 days7.00%
Yes Bank46 to 90 days7.00%
Yes Bank9 months to < 1 Year7.00%
Karur Vysya Bank91 Days to 180 Days6.90%
South Indian Bank92 days to 499 days6.90%
Yes Bank3 months to < 6 months6.90%
Bandhan Bank6 months to less than 1 year6.80%
City Union Bank91 days to 180 days6.75%
DCB Bank91 days to less than 6 months6.75%
IDFC Bank91 – 180 days6.75%
Karur Vysya Bank181 Days to less than 1 year6.75%
Tamilnad Mercantile Bank180 days to less than 12 months6.75%
Union Bank of India10 Month to 14 Month6.75%
State Bank of IndiaGovernment Bank Benchmark5.75% – 6.40%
ICICI BankPrivate Bank Benchmark4.00% – 6.75%


Also Read:
 21 Hidden Charges in Saving Bank Account

Interest Rate for Fixed Deposit of 1 – 2 Years:

The highest interest rate is offered by DCB Bank (15 months to 24 months) at 8.05%.

BankDescriptionInterest Rate
DCB Bank15 months to 24 months8.05%
IDFC Bank731 – 1095 days8.00%
Indus Ind Bank1 Years to below 1 Years 2 Months8.00%
Lakshmi Vilas Bank450 Days8.00%
Ratnakar Bank12 months to less than 24 months8.00%
Yes Bank18 Months 8 Days to 18 Months 18 Days7.85%
Repco BankRepco Mahila (18 Months, Exclusively for Women)7.80%
Deutsche Bank1 Year to lass than 2 Years7.75%
Indus Ind Bank1 Years 2 Months to below 2 Years7.75%
Repco Bank1 Year & Above – 2 years7.70%
Axis Bank17 months < 18 months7.60%
Lakshmi Vilas Bank1 Year to less than 3 years7.60%
South Indian Bank500 Days7.60%
Axis Bank1 year 5 days < 1 year 11 days7.55%
Bandhan BankAbove 18 months to less than 2 years7.55%
DCB Bank24 months7.50%
Federal Bank550 days7.50%
IDFC Bank366 – 730 days7.50%
Kotak Mahindra Bank15 months – less than 2 Years7.50%
Standard Charted Bank18 Months – 2 Years7.50%
Yes Bank12 Months 10 Days to 12 Months 20 Days7.50%
DCB Bank12 months 1 day to less than 15 months7.40%
Karnataka Bank1 year to 2 years7.40%
Kotak Mahindra Bank12 months – less than 15 months7.40%
Standard Charted Bank1 Year – 375 days7.40%
Tamilnad Mercantile Bank1 Year7.40%
Axis Bank13 months < 14 months7.35%
City Union Bank365 days – 5 Years7.35%
Axis Bank1 year < 2 years7.30%
HDFC Bank1 year – 2 Years7.30%
J&K Bank1 year to less than 5 years7.30%
Bandhan Bank1 year to 18 months7.25%
Dhanalakshmi Bank500 Days7.25%
Karur Vysya Bank1 year to less than 2 years7.25%
Kotak Mahindra Bank2 years- less than 3 years7.25%
Yes Bank1 Year <= 10 years7.25%
Canara Bank555 Days (Canara Shikhar Deposit)7.10%
South Indian Bank501 days to upto and incl. 3 years7.10%
Canara Bank444 Days (Canara Shikhar Deposit)7.05%
IDBI Bank>1 yrs to < 3 yrs7.05%
Canara BankAbove 1 year to less than 2 years7.00%
Citibank401 – 540 Days7.00%
DCB Bank6 months to 12 months7.00%
Dhanalakshmi Bank365 days & inclusive of 2 years7.00%
Digibank by DBS1 year to less than 5 Years7.00%
Federal BankAbove 1 year to 2 Years7.00%
Standard Charted Bank376 days < 18 Months7.00%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.00%
South Indian Bank92 days to 499 days6.90%
Corporation Bank666 days only6.80%
Syndicate Bank500 days exact (Synd500)6.80%
Punjab and Sind Bank1 Year – 2 Years6.75%
Punjab National Bank1 Year – 3 Years6.75%
Union Bank of India10 Month to 14 Month6.75%
State Bank of IndiaGovernment Bank Benchmark6.80%
ICICI BankPrivate Bank Benchmark6.90% – 7.10%
Post Office FD (1 year)Post Office6.90%
Post Office FD (2 years)Post Office7.00%

Click for Best Interest Rate on Recurring Deposits

Interest Rate for Fixed Deposit of 2 – 5 Years

The highest interest rate is offered by Deutsche Bank (5 Years) and IDFC Bank (3 years 1 Day – 10 years) at 8.25%

BankDescriptionInterest Rate
Deutsche Bank5 Years8.25%
IDFC Bank3 years 1 Day – 10 years8.25%
DCB Bank36 months8.05%
Ratnakar Bank24 months to less than 36 months8.05%
IDFC Bank731 – 1095 days8.00%
DCB Bank36 months to 60 months7.75%
Lakshmi Vilas Bank3 Years to 10 Years7.75%
Tamilnad Mercantile Bank1111 Days7.65%
City Union Bank1000 Days7.60%
DCB Bank24 months to 36 months7.60%
Lakshmi Vilas Bank1 Year to less than 3 years7.60%
Ratnakar Bank36 months to less than 120 months7.60%
Axis Bank2 years < 3 years7.50%
Citibank732 – 1095 Days7.50%
Deutsche Bank2 Year to lass than 5 Years7.50%
Digibank by DBS2 years & 6 months7.50%
Indus Ind Bank2 years to below 61 Months7.50%
Yes Bank36 Months 10 Days to 36 Months 20 Days7.50%
Bandhan Bank2 years to less than 5 years7.40%
HDFC Bank2 years – 3 Years7.40%
City Union Bank365 days – 5 Years7.35%
J&K Bank1 year to less than 5 years7.30%
Axis Bank3 years < 5 years7.25%
Federal BankAbove 2 Years7.25%
HDFC Bank3 years 1day – 5 years7.25%
Kotak Mahindra Bank2 years- less than 3 years7.25%
Yes Bank1 Year <= 10 years7.25%
South Indian Bank501 days to upto and incl. 3 years7.10%
South Indian BankAbove 3 years to up to and incl.5 years7.10%
Digibank by DBS1 year to less than 5 Years7.00%
Karur Vysya Bank2 years and above7.00%
Kotak Mahindra Bank3 years and above but less than 5 years7.00%
Repco BankAbove 2 years – 5 Years7.00%
Standard Charted Bank2 Years – 3 Years7.00%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.00%
Tamilnad Mercantile Bank3 Years & above6.90%
State Bank of IndiaGovernment Bank Benchmark6.80%
ICICI BankPrivate Bank Benchmark7.25% – 7.50%
Post Office FD (2 years)Post Office7.00%
Post Office FD (3 years)Post Office7.20%
Post Office FD (5 years)Post Office7.80%


Also Read:
 Where to Park Money for Very Short Term [less than 6 Months]?

Interest Rate for Fixed Deposit of 5 – 10 Years

The highest interest rate is offered by IDFC Bank (3 years 1 Day – 10 years) at 8.25%.

BankDescriptionInterest Rate
IDFC Bank3 years 1 Day – 10 years8.25%
Ratnakar Bank36 months to less than 120 months7.60%
Digibank by DBS5 Years7.50%
Lakshmi Vilas Bank12 Months to 120 Months7.50%
DCB BankMore than 60 months to 120 months7.25%
Federal BankAbove 2 Years7.25%
Indus Ind Bank3 years to below 61 month7.25%
Yes Bank1 Year <= 10 years7.25%
Axis Bank5 years to 10 years7.00%
Karur Vysya Bank2 years and above7.00%
Tamilnad Mercantile Bank3 Years & above6.90%
State Bank of IndiaGovernment Bank Benchmark6.85%
ICICI BankPrivate Bank Benchmark7.00%

Also Read: How to fill Form 15G/H to avoid TDS deduction?

Interest Rate for Fixed Deposit of more than 10 Years

The Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years.

BankDescriptionInterest Rate
Ratnakar Bank121 months to less than 240 months7.20%
IDBI Bank10 Years to 20 Years6.00%


Source:
Bank Websites                                          Last Updated: December 1, 2018

Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.

Also Read:13 Investments to Generate Regular Income

Highest Interest Rate on Bank Fixed Deposits - December 2018

Highest Interest Rate on Bank Fixed Deposits – December 2018

Small Banks Fixed Deposit Interest Rates:

The table below compares the interest rate offered by Small banks to that of SBI. The difference is substantial for low tenure deposits. Fincare Bank (24 months 1 day to 36 months), Suryoday Small Finance Bank (950 Days) & Utkarsh Small Finance Bank (456 Days to less than 2 years) offers 9%  while SBI (for 24 to 36 months deposit) offers 6.8% only.

Banks<1 year1 Year2 Years3 Years4 Years5 Years5 Year+
AU Small Finance Bank7.00%8.50%7.75%7.75%8.00%8.00%7.25%
Capital Small Finance Bank7.00%7.50%7.60%7.70%7.50%7.50%7.40%
Equitas Small Finance Bank7.50%8.75%8.80%8.80%7.00%7.00%7.00%
ESAF Small Finance Bank7.50%8.75%8.75%8.00%7.00%7.00%7.00%
Fincare Small Finance Bank7.00%8.75%9.00%9.00%8.00%8.00%7.00%
Jana Small Finance Bank8.50%8.50%8.50%8.50%8.50%8.50%7.00%
Suryoday Small Finance Bank7.75%8.50%8.75%9.00%8.00%8.25%7.25%
Ujjivan Small Finance Bank7.50%8.30%8.60%7.50%7.00%7.00%6.50%
Utkarsh Small Finance Bank7.50%8.50%9.00%7.85%7.00%8.00%7.00%
SBI6.40%6.80%6.80%6.80%6.80%6.85%6.85%

                                                                                                        Updated: December 1, 2018

Also Read: Should you invest in Small banks Fixed Deposits?

Fixed Deposit Interest Rate across all Banks

Earlier we used to provide only the top Fixed Deposit Rates but with several request from readers we have added a summary of FD rates for all banks.

Banks1 Years2 Years3 Years4 Years5 Years5+ Years
Allahabad Bank6.65%6.50%6.50%6.50%6.50%6.50%
Andhra Bank6.80%6.80%6.75%6.75%6.75%6.50%
Axis Bank7.55%7.60%7.50%7.25%7.25%7.00%
Bandhan Bank7.25%7.55%7.40%7.40%6.40%6.40%
Bank of Baroda6.85%6.80%6.70%6.70%6.70%6.60%
Bank of India6.65%6.70%6.50%6.50%6.50%6.50%
Bank of Maharashtra6.50%6.60%6.60%6.50%6.50%6.50%
Canara Bank7.00%7.10%6.70%6.20%6.20%6.20%
Catholic Syrian Bank7.00%6.75%6.75%6.50%6.50%6.50%
Central Bank of India6.60%6.50%6.50%6.50%6.50%6.50%
Citibank6.25%7.25%7.50%6.00%6.00%6.00%
City Union Bank7.35%7.35%7.60%7.35%7.35%6.70%
Corporation Bank6.60%6.80%6.50%6.50%6.50%6.50%
DCB Bank7.40%8.05%8.05%7.75%7.75%7.25%
Dena Bank6.75%6.75%6.60%6.25%6.30%6.30%
Deutsche Bank8.00%8.00%7.50%7.50%8.25%NA
Dhanalakshmi Bank7.00%7.25%6.50%6.50%6.50%6.50%
Digibank by DBS7.00%7.00%7.50%7.00%7.50%NA
Federal Bank7.00%7.50%7.25%7.25%7.25%7.25%
HDFC Bank7.30%7.30%7.40%7.25%7.25%6.50%
ICICI Bank7.10%7.50%7.50%7.25%7.25%7.00%
IDBI Bank7.00%7.05%7.05%6.85%6.85%6.25%
IDFC Bank7.50%8.00%8.25%8.25%8.25%8.25%
Indian Bank6.75%6.60%6.50%6.00%6.00%6.00%
Indian Overseas Bank6.60%6.75%6.80%6.80%6.80%6.80%
Indus Ind Bank8.00%7.75%7.50%7.50%7.50%7.25%
J&K Bank7.30%7.30%7.30%7.30%7.30%6.50%
Karnataka Bank7.40%7.40%6.90%6.90%6.90%6.50%
Karur Vysya Bank7.25%7.25%7.00%7.00%7.00%7.00%
Kotak Mahindra Bank7.40%7.50%7.25%7.00%7.00%6.50%
Lakshmi Vilas Bank7.60%8.00%7.60%7.75%7.75%7.75%
Oriental Bank of Commerce6.75%6.75%6.75%6.70%6.75%6.75%
Post Office Time Deposit6.90%7.00%7.20%NA7.80%NA
Punjab and Sind Bank7.00%7.00%6.60%6.55%6.55%6.55%
Punjab National Bank6.75%6.85%6.75%6.25%6.25%6.25%
Ratnakar Bank8.00%8.05%7.60%7.60%7.60%7.60%
Repco Bank7.70%7.70%7.00%7.00%7.00%NA
South Indian Bank6.90%7.60%7.10%7.00%7.00%6.50%
Standard Charted Bank7.40%7.50%7.00%6.50%6.50%NA
State Bank of India6.80%6.80%6.80%6.80%6.85%6.85%
Syndicate Bank6.70%6.80%6.60%6.60%6.60%6.50%
Tamilnad Mercantile Bank7.40%7.00%7.65%6.90%6.90%6.90%
UCO Bank6.70%6.75%6.75%6.75%6.75%6.75%
Union Bank of India6.75%6.70%6.85%6.85%6.85%6.85%
United Bank of India6.25%6.00%6.00%6.00%6.00%6.00%
Vijaya Bank6.80%6.80%6.80%6.80%6.80%6.80%
Yes Bank7.50%7.85%7.50%7.25%7.25%7.25%

Helpful Posts on FD:

It would be helpful for you to look at following posts before you choose your fixed deposits:

  1. How to increase bank deposit insurance through Joint accounts?
  2. How Safe is Your Fixed Deposit in Bank?
  3. How you loose Money in Fixed Deposits?

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237 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – December 2018

  1. hi sir i want to deposit 50000 rs fixed deposit in any bank for 5 years on my son’s name, which is the best one out of these sbi, andhra bank, corporation bank.. we have only these banks in our home town.. and one more thing is TDS applicable to this deposit..

  2. Respected sir.
    My inlaws had fixed deposit in a nationalised bank till dec 2015. At the rate of 9 %
    Now from January 2016 the interest is decreased to 7.8 %
    Now they are thinking to deposit in some cooperative bank. They are offering 10%interest
    But my question is how safe is our money in cooperative banks. Please suggest

    • Yes the interest rates are falling and this is major problem for people who depend on fixed deposit for their income. Co-operative banks offer higher interest rate but are riskier than normal public/private sector banks. You can limit the exposure to each person to Rs 1 lakh in each co-operative bank as it’s insured by deposit insurance. So if there are 2 people (A & B)on whose name FD can be done you can keep your exposure up to Rs 4 Lakhs – invest in A and B’s name individually. You can also invest in joint names – in once case A as the first holder and 2nd case B as first holder. All the 4 combinations are considered 4 different entities for deposit insurance.

      Also you should explore high-rated companies like DHFL, HDFC, ICICI Housing, PNB Housing, etc who offer higher interest rates than banks.

  3. how much safe FD & in case bank will layoff what will happen our deposit amount

    • All Government owned and big Private banks are safe. So you need not worry about their shutdown. There is risk in co-operative banks and every year few banks shut down. So you should be careful about them.

      Deposit up to Rs 1 Lakh (including interest) is insured and you’ll get it back after some formalities and wait. You can read more about Safety of your Fixed Deposits here.

      • Jadav Choudhury says:

        Hi I need to know a thing. I am 69 years old and turning 70 this April. I will be selling my business for about Rs 87 lacs. Can you advise me the best way to invest this money so as to earn a good interest and return on that without much of a hassle or worry.

        • Sir where to invest is a difficult question to answer as I have no background on what you want to do with this money, what is your asset/liability, your risk profile etc. All I can suggest is to invest in Senior Citizen Savings Account on you and your spouse name. That would take care of Rs 30 Lakhs. Other than this you can keep money in Fixed deposit too. If you are looking for regular income – you can choose any of these 13 options.

  4. Dattatray Sonawane says:

    When I contacted Ratnakar Bank for opening FD after read your post. They told for opening saving bank account then only FD will be accepted. I already have 5 saving accounts. It’s difficult to maintain again 1 more SB a/c. Is it mandatory to have saving account for FD ?.

    • No its not mandatory to open savings account for opening fixed deposit. Banks generally insist on savings account as it makes transfer of money easier and repeated KYC can be avoided. I know people who opened Fixed Deposit in different banks without savings account.

      Also your approach of having limited number of savings account is correct as they are expensive to maintain!

    • Coincidently, I opened a FD at Ratnakar today itself. They asked me too about the savings account but I sternly refused. I said I already have one and only need to open FD. It is not compulsory. They opened the FD. I have realised one thing that the customer service and the staff sucks there, worse than many PSU Banks. Also, they are very very slow. But the interest rate is good and once FD is opened I don’t have to deal with them till I need the money. So it’s worth it.

  5. BANDHAN Bank ???? Recurring Deposit interest is 8.5%????

  6. Hi Amit been looking at these fancy rate of interest but the hidden feature like compounded quaterly ,6 monthly etc etc makes these figures below what the banks promise except post office.Could you please elaborate

  7. Along with that kindly advice what are the best options of investment for NRI’s.

  8. How do you rate The Ratnakar Bank & DCB bank in terms of having 2 years FD with them as they are offering the highest return rates.

  9. Hi ,i want to invest rs 25 lakhs ,which i will needing after 18 months for education abroad for my daughter ,which is the best alternate

    • If you are in higher tax bracket, I would recommend Arbitrage Mutual Fund. This would give you tax free returns as the investment horizon is for more than 1 year. You can expect returns similar to bank fixed deposit but tax free. You can learn more about Arbitrage Mutual Fund here.

      In case you are in lower tax bracket then go for Bank fixed deposit.

  10. Santosh Narayanan says:

    Think you missed Central BANK of india 1-2 Years @ 8.0% , SBP @ 7.77 % 1-2 years

  11. ankita Rsthore says:

    Sir I m a government servant & want exemption from income tax ,,Fd income tax se rebate deti h kya,,,,, q

  12. Sir, may I beg to know that I want to make fixed Deposit for 10 years of Rs.12 Lacs on my minor son name who is now 10 years old, I want to get interest per month in order to educed him. May I know which bank gives highest amount of interest rate. Also if I have to pay Income Tax on the earned Interest. I am not a senior citizen. Can I make my wife as the custodian of that Deposit. What papers are required…

    • The highest interest rates offered by Banks as of today is in the table in the post above. You can open Fixed Deposit on the name of minor child (with you/wife as guardian) or go for joint account with him.

      If the FD amount is from your income, the interest received would be taxable in your hands even if you do FD in your wife/child name, as clubbing provision for taxation would apply here.

  13. Hi Amit,
    Thank you for posting the consolidated FD rates. It’s very helpful. I’m retired person and I’ve few queries please help me. I’ll get some lump sum amount of 30 Lakhs in coming months. I would like invest the amount in FD for monthly income.

    1. If I invest 30 Lakhs in a bank and as per interest rate 9% I’ll get 22,000 per month. I don’t have any other source of income and staying in rent house. Please let me know how TDS will be calculated if I’m taking a monthly payout.

    Thank you
    Kishore

    • Banks would deduct TDS if the annual interest income exceeds Rs 10,000. In your case it would come to Rs 2.64 Lakhs, so bank would deduct TDS @ of 10% of the interest received in case you give valid PAN number. If there is no PAN provided the TDS rate is 20%.

      Since you are senior citizen with income less than Rs 3 lakhs (income tax exemption limit), you can submit Form 15H to all the bank branches where you have FD and they would not deduct any TDS. Submit the Form 15H when you make the deposits and then at the start of every financial year. Also from October 1, 2015 you can submit this Form 15H online.

  14. I was referring RD of different banks and found that all banks offer more percentage for 1 or 2 years and then after percentage gets low, why is it so?

    • Your observation is right. The interest offered by banks depend on many factors. The banks have to balance their deposit and loans so the interest rate offered is in alignment to that. Also it depends on the way banks thinks that interest rates would move. If they feel the interest rate would be lower in 5 years, they would offer lower interest rate.

  15. Non-deposit of pending installments till maturity date, interest will be paid on daily products basis compounded half yearly. what does it means?

    • Sanjib, these wordings make no sense even to me. But with all my effort I think the bank wants to state that the interest would only be paid on deposits made and not on missed installments. If the installment is delayed then the interest would be paid only after the deposit was made for the missed payment.

  16. jasbiir singh says:

    i would like to enquire, if any indian bank do long term FD. e.g., 20 yrs on current interest rate ?

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