The post lists down the rate of interest on Bank fixed deposits as of June 1, 2019.
You might want to bookmark this page as the FD interest rates would be updated every month. Would help you in better decision making.
Contents
- 1 Fixed Deposit Highlights
- 2 Fixed Deposit Interest Rates
- 3 Interest Rate for FD of Less than 1 Year
- 4 Interest Rate for Fixed Deposit of 1 – 2 Years
- 5 Interest Rate for Fixed Deposit of 2 – 5 Years
- 6 Interest Rate for Fixed Deposit of 5 – 10 Years
- 7 Interest Rate for Fixed Deposit of more than 10 Years
- 8 Small Banks Fixed Deposit Interest Rates
- 9 Helpful Posts on Fixed Deposits
- 10 Fixed Deposit Interest Rate across all Banks
- 11 Bank FD Interest
Fixed Deposit Highlights
- SBI has changed its FD rates. It has increased for 1 year deposit but reduced or remained same for most other tenures.
- 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 40,000 in financial year per bank (changed from Rs 10,000 limit in Budget 2019)
- In case of Senior citizens TDS would be deducted at the rate of 10%, if the interest income exceeds Rs 50,000
- There might be penalty for pre-mature withdrawal of Fixed Deposits
Fixed Deposit Interest Rates
The highest interest rate on fixed deposit is offered by Lakshmi Vilas Bank (450 days) at 8.40%.
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
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.
Interest Rate for FD of Less than 1 Year
The highest interest rate is offered by Lakshmi Vilas Bank (331-364 days) at 7.75%.
| Bank | Description | Interest Rate |
| Lakshmi Vilas Bank | 331-364 days | 7.75% |
| Lakshmi Vilas Bank | 181 – 330 days | 7.65% |
| Ratnakar Bank | 241 days to 364 days | 7.35% |
| Indus Ind Bank | 270 days to below 1 years | 7.25% |
| Ratnakar Bank | 181 days to 240 days | 7.25% |
| Ratnakar Bank | 91 days to 180 days | 7.15% |
| Yes Bank | 9 months to < 1 Year | 7.15% |
| Axis Bank | 9 months < 1 year 25 days | 7.10% |
| HDFC Bank | 9 mnths 1 day < 1 Year | 7.10% |
| Kotak Mahindra Bank | 364 Days | 7.10% |
| J&K Bank | 271 days to less than 1 year | 7.05% |
| City Union Bank | 181 days to 364 days | 7.00% |
| DCB Bank | 6 months to less than 12 months | 7.00% |
| IDFC First Bank | 181 – 365 days | 7.00% |
| Indus Ind Bank | 181 days to 269 days | 7.00% |
| Lakshmi Vilas Bank | 151-180 days | 7.00% |
| Ratnakar Bank | 46 days to 90 days | 7.00% |
| Repco Bank | 90 days – 364 days | 7.00% |
| Standard Charted Bank | 181-364 days | 7.00% |
| Karur Vysya Bank | 91 Days to 180 Days | 6.90% |
| Yes Bank | 6 months to < 9 months | 6.85% |
| Bandhan Bank | 6 months to less than 1 year | 6.80% |
| Tamilnad Mercantile Bank | 271 days – < 12 months | 6.80% |
| Allahabad Bank | 333 days | 6.75% |
| City Union Bank | 91 days to 180 days | 6.75% |
| DCB Bank | 91 days to less than 6 months | 6.75% |
| IDFC First Bank | 91 – 180 days | 6.75% |
| Karur Vysya Bank | 181 Days to less than 1 year | 6.75% |
| Kotak Mahindra Bank | 271 Days to 363 Days | 6.75% |
| Tamilnad Mercantile Bank | 180 days – 270 days | 6.75% |
| Union Bank of India | 10 Month to 14 Month | 6.75% |
| Allahabad Bank | 155 days | 6.50% |
| South Indian Bank | 91 days to less than 1 year | 6.50% |
| State Bank of India | Government Bank Benchmark | 5.75% – 6.40% |
| ICICI Bank | Private Bank Benchmark | 4.00% – 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 Lakshmi Vilas Bank (450 days) at 8.40%.
| Bank | Description | Interest Rate |
| Lakshmi Vilas Bank | 450 Days | 8.40% |
| IDFC First Bank | 731 days | 8.25% |
| DCB Bank | 18 months | 8.15% |
| DCB Bank | 15 months to 24 months | 8.05% |
| Ratnakar Bank | 12 months to less than 24 months | 8.00% |
| Repco Bank | Repco Mahila (18 Months, Exclusively for Women) | 7.80% |
| Deutsche Bank | 1 Year to less than 1.5 Years | 7.75% |
| IDFC First Bank | 366 – 730 days | 7.75% |
| Indus Ind Bank | 1 Years 4 Months to below 3 Years | 7.75% |
| Repco Bank | 1 Year & Above – 2 years | 7.70% |
| Bandhan Bank | Above 18 months to less than 2 years | 7.65% |
| Yes Bank | 2 years to less than 3 years | 7.65% |
| Indus Ind Bank | 1 Years to below 1 Years 4 Months | 7.60% |
| Lakshmi Vilas Bank | 1 Year to less than 3 years | 7.60% |
| Yes Bank | 18 Months 8 Days to 18 Months 18 Days | 7.55% |
| DCB Bank | 24 months | 7.50% |
| Deutsche Bank | 1.5 Years to less than 5 Years | 7.50% |
| Digibank by DBS | 1 year to 15 months | 7.50% |
| Standard Charted Bank | 18 Months – 2 Years | 7.50% |
| DCB Bank | 12 months 1 day to less than 15 months | 7.40% |
| South Indian Bank | 1 year | 7.40% |
| Standard Charted Bank | 1 Year – 375 days | 7.40% |
| Bandhan Bank | 1 year to 18 months | 7.35% |
| City Union Bank | 365 days – 5 Years | 7.35% |
| Axis Bank | 1 year 25 days < 3 years | 7.30% |
| Federal Bank | 550 days | 7.30% |
| Federal Bank | Above 1 year to 2 Years | 7.30% |
| HDFC Bank | 1 year – 2 Years | 7.30% |
| J&K Bank | 1 year to less than 5 years | 7.30% |
| Karnataka Bank | 1 year to 2 years | 7.30% |
| Kotak Mahindra Bank | 390 Days (12 months 25 days) | 7.30% |
| Kotak Mahindra Bank | 390 Days (12 months 25 days) | 7.30% |
| Dhanalakshmi Bank | 500 Days | 7.25% |
| IDBI Bank | 1 year | 7.25% |
| Karur Vysya Bank | 1 year to less than 2 years | 7.25% |
| Kotak Mahindra Bank | 391 Days – 23 Months | 7.25% |
| Tamilnad Mercantile Bank | 1 Year | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| IDBI Bank | >1yrs to 2yrs | 7.20% |
| Kotak Mahindra Bank | 365 Days to 389 Days ; 23 months 1 Day- less than 2 years | 7.20% |
| Syndicate Bank | Above 2 to less than 5 yrs | 7.15% |
| Axis Bank | 1 year < 1 year 25 days | 7.10% |
| Kotak Mahindra Bank | 2 years- less than 3 years | 7.10% |
| Syndicate Bank | 500 days exact | 7.05% |
| Bank of Baroda | 444 days | 7.00% |
| Corporation Bank | 666 days only | 7.00% |
| DCB Bank | 6 months to 12 months | 7.00% |
| Dhanalakshmi Bank | 365 days and above upto & inclusive of 2 years | 7.00% |
| Digibank by DBS | 15 months 1 day to less than 5 Years | 7.00% |
| Punjab National Bank | 1 year | 7.00% |
| South Indian Bank | Above 1 year to up to and incl. 2 years | 7.00% |
| Standard Charted Bank | 376 days < 18 Months | 7.00% |
| Syndicate Bank | 400 days exact | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| State Bank of India | Government Bank Benchmark | 7.00% |
| ICICI Bank | Private Bank Benchmark | 6.90% – 7.10% |
| Post Office FD (1 year) | Post Office | 7.00% |
| Post Office FD (2 years) | Post Office | 7.00% |
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) & DCB Bank (36 months) at 8.25%
| Bank | Description | Interest Rate |
| DCB Bank | 36 months | 8.25% |
| Deutsche Bank | 5 Years | 8.25% |
| Ratnakar Bank | 24 months to less than 36 months | 8.05% |
| DCB Bank | 36 months to 60 months | 7.75% |
| Indus Ind Bank | 1 Years 4 Months to below 3 Years | 7.75% |
| Lakshmi Vilas Bank | 3 Years to 10 Years | 7.75% |
| Yes Bank | 2 years to less than 3 years | 7.65% |
| City Union Bank | 1000 Days | 7.60% |
| DCB Bank | 24 months to 36 months | 7.60% |
| Lakshmi Vilas Bank | 1 Year to less than 3 years | 7.60% |
| Ratnakar Bank | 36 months to less than 120 months | 7.60% |
| Bandhan Bank | 2 years to less than 7 years | 7.50% |
| Deutsche Bank | 1.5 Years to less than 5 Years | 7.50% |
| IDFC First Bank | 732 – 5 Years | 7.50% |
| Indus Ind Bank | 3 years to below 61 Months | 7.45% |
| South Indian Bank | 2 years to upto and incl. 3 years | 7.45% |
| Federal Bank | Above 2 years to less than 3 years | 7.40% |
| HDFC Bank | 2 years – 3 Years | 7.40% |
| City Union Bank | 365 days – 5 Years | 7.35% |
| Axis Bank | 1 year 25 days < 3 years | 7.30% |
| IDBI Bank | 1100 Days | 7.30% |
| J&K Bank | 1 year to less than 5 years | 7.30% |
| Axis Bank | 3 years < 5 years | 7.25% |
| Federal Bank | 3 years and above | 7.25% |
| HDFC Bank | 3 years 1day – 5 years | 7.25% |
| South Indian Bank | 3 years and above up to and incl. 10 years | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| Syndicate Bank | Above 2 to less than 5 yrs | 7.15% |
| Kotak Mahindra Bank | 2 years- less than 3 years | 7.10% |
| IDBI Bank | >2 yrs to < 3 yrs | 7.05% |
| Digibank by DBS | 15 months 1 day to less than 5 Years | 7.00% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| Kotak Mahindra Bank | 3 years and above but less than 5 years | 7.00% |
| Oriental Bank of Commerce | 1 Year to less than 2 Years | 7.00% |
| Repco Bank | Above 2 years – 5 Years | 7.00% |
| Standard Charted Bank | 2 Years – 3 Years | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| Tamilnad Mercantile Bank | 3 Years & above | 6.90% |
| State Bank of India | Government Bank Benchmark | 6.70% – 6.75% |
| ICICI Bank | Private Bank Benchmark | 7.25% – 7.50% |
| Post Office FD (2 years) | Post Office | 7.00% |
| Post Office FD (3 years) | Post Office | 7.00% |
| Post Office FD (5 years) | Post Office | 7.80% |
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 Ratnakar Bank (36 months to less than 120 months) at 7.60%.
| Bank | Description | Interest Rate |
| Ratnakar Bank | 36 months to less than 120 months | 7.60% |
| Bandhan Bank | 2 years to less than 7 years | 7.50% |
| Lakshmi Vilas Bank | 12 Months to 120 Months | 7.50% |
| Indus Ind Bank | 3 years to below 61 Months | 7.45% |
| DCB Bank | More than 60 months to 120 months | 7.25% |
| Federal Bank | 3 years and above | 7.25% |
| IDFC First Bank | 5 years 1 Day – 10 years | 7.25% |
| Indus Ind Bank | 61 month and above | 7.25% |
| South Indian Bank | 3 years and above up to and incl. 10 years | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| Axis Bank | 5 years to 10 years | 7.00% |
| Digibank by DBS | 15 months 1 day to less than 5 Years | 7.00% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| State Bank of India | Government Bank Benchmark | 6.60% |
| ICICI Bank | Private Bank Benchmark | 7.00% |
Interest Rate for Fixed Deposit of more than 10 Years
The Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years.
| Bank | Description | Interest Rate |
| Ratnakar Bank | 121 months to less than 240 months | 7.20% |
| IDBI Bank | 10 Years to 20 Years | 6.00% |
Source: Bank Websites Last Updated: June 1, 2019
Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.
Highest Interest Rate on Bank Fixed Deposits – June 2019
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 6.75% only.
| Banks | <1 year | 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | 5 Year+ |
| AU Small Finance Bank | 7.01% | 7.01% | 7.87% | 8.10% | 7.77% | 7.77% | 7.30% |
| Capital Small Finance Bank | 7.15% | 7.80% | 7.80% | 7.80% | 7.80% | 7.65% | 7.40% |
| Equitas Small Finance Bank | 7.50% | 8.20% | 8.55% | 8.55% | 7.00% | 7.00% | 7.00% |
| ESAF Small Finance Bank | 7.50% | 8.50% | 8.50% | 7.30% | 7.30% | 7.30% | 7.30% |
| Fincare Small Finance Bank | 7.00% | 8.00% | 9.00% | 9.00% | 8.00% | 8.00% | 7.00% |
| Jana Small Finance Bank | 8.50% | 8.50% | 8.50% | 9.00% | 8.50% | 8.50% | 7.00% |
| Suryoday Small Finance Bank | 7.75% | 8.50% | 8.75% | 9.00% | 8.00% | 8.25% | 7.25% |
| Ujjivan Small Finance Bank | 7.50% | 8.30% | 8.60% | 7.50% | 7.00% | 7.00% | 6.50% |
| Utkarsh Small Finance Bank | 7.50% | 8.50% | 9.00% | 7.85% | 7.00% | 8.00% | 7.00% |
| SBI | 6.40% | 7.00% | 6.75% | 6.70% | 6.70% | 6.60% | 6.60% |
Updated: June 1, 2019
Helpful Posts on Fixed Deposits
Which bank offers Highest Interest Rate on Bank FD?
13 Most Important things to know before investing in Bank Fixed Deposits
Section 80TTB: Senior Citizens can Save Tax on their Interest Income
TDS threshold on Bank FD increased to Rs 40,000 from April 1, 2019
Avoid TDS: fill Form 15G and 15H
Small Bank FDs offer interest up to 9% – Should you invest?
How SWP in Debt Funds generate higher returns than FD
How to increase bank deposit insurance through Joint accounts?
How Safe is Your Fixed Deposit in Bank?
How you loose Money in Fixed Deposits?
Fixed Deposits that you can use to save Tax
Highest Interest Rate on Recurring Deposits
Understanding Compounding and Yield in Fixed Deposit
How to get Credit card against Fixed Deposit?
7 High Rated Companies Offering more than Bank 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.
| Banks | 1 Years | 2 Years | 3 Years | 4 Years | 5 Years | 5+ Years |
| Allahabad Bank | 6.75% | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% |
| Andhra Bank | 6.80% | 6.80% | 6.75% | 6.75% | 6.75% | 6.50% |
| Axis Bank | 7.10% | 7.30% | 7.30% | 7.25% | 7.25% | 7.00% |
| Bandhan Bank | 7.35% | 7.65% | 7.50% | 7.50% | 7.50% | 7.50% |
| Bank of Baroda | 6.85% | 7.00% | 6.70% | 6.70% | 6.70% | 6.70% |
| Bank of India | 6.70% | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% |
| Bank of Maharashtra | 6.50% | 6.50% | 6.50% | 6.25% | 6.25% | 6.25% |
| Canara Bank | 6.75% | 6.70% | 6.60% | 6.00% | 6.00% | 6.00% |
| Catholic Syrian Bank | 7.00% | 6.75% | 6.75% | 6.50% | 6.50% | 6.50% |
| Central Bank of India | 6.65% | 6.65% | 6.55% | 6.55% | 6.55% | 6.55% |
| Citibank | 5.50% | 6.50% | 6.50% | 6.00% | 6.00% | 6.00% |
| City Union Bank | 7.35% | 7.35% | 7.60% | 7.35% | 7.35% | 6.70% |
| Corporation Bank | 6.80% | 7.00% | 6.50% | 6.50% | 6.50% | 6.50% |
| DCB Bank | 7.40% | 8.15% | 8.25% | 7.75% | 7.75% | 7.25% |
| Deutsche Bank | 7.75% | 7.50% | 7.50% | 7.50% | 8.25% | NA |
| Dhanalakshmi Bank | 7.00% | 7.25% | 6.50% | 6.50% | 6.50% | 6.50% |
| Federal Bank | 7.30% | 7.40% | 7.40% | 7.25% | 7.25% | 7.25% |
| HDFC Bank | 7.30% | 7.30% | 7.40% | 7.25% | 7.25% | 6.50% |
| ICICI Bank | 6.90% | 7.10% | 7.50% | 7.25% | 7.25% | 7.00% |
| IDBI Bank | 7.25% | 7.20% | 7.30% | 6.85% | 6.85% | 6.25% |
| IDFC First Bank | 7.75% | 8.25% | 7.50% | 7.50% | 7.50% | 7.25% |
| Indian Bank | 6.75% | 6.60% | 6.75% | 6.75% | 6.90% | 6.50% |
| Indian Overseas Bank | 6.60% | 6.75% | 6.80% | 6.80% | 6.80% | 6.80% |
| Indus Ind Bank | 7.60% | 7.75% | 7.75% | 7.35% | 7.35% | 7.25% |
| J&K Bank | 7.30% | 7.30% | 7.30% | 7.30% | 7.30% | 6.50% |
| Karnataka Bank | 7.30% | 7.30% | 7.00% | 7.00% | 7.00% | 6.50% |
| Karur Vysya Bank | 7.25% | 7.25% | 7.00% | 7.00% | 7.00% | 7.00% |
| Kotak Mahindra Bank | 7.20% | 7.10% | 7.00% | 7.00% | 7.00% | 6.50% |
| Lakshmi Vilas Bank | 7.75% | 8.40% | 7.85% | 7.85% | 7.85% | 7.85% |
| Oriental Bank of Commerce | 7.00% | 6.75% | 6.75% | 6.70% | 6.75% | 6.75% |
| Post Office Time Deposit | 7.00% | 7.00% | 7.00% | NA | 7.80% | NA |
| Punjab and Sind Bank | 7.00% | 6.80% | 6.80% | 6.55% | 6.55% | 6.55% |
| Punjab National Bank | 7.00% | 6.85% | 6.75% | 6.25% | 6.25% | 6.25% |
| Ratnakar Bank | 8.00% | 8.05% | 7.60% | 7.60% | 7.60% | 7.60% |
| Repco Bank | 7.70% | 7.70% | 7.00% | 7.00% | 7.00% | NA |
| South Indian Bank | 7.40% | 7.45% | 7.25% | 7.25% | 7.25% | 7.25% |
| Standard Charted Bank | 7.40% | 7.50% | 7.00% | 6.50% | 6.50% | NA |
| State Bank of India | 7.00% | 6.75% | 6.70% | 6.70% | 6.60% | 6.60% |
| Syndicate Bank | 6.70% | 7.15% | 7.15% | 7.15% | 6.50% | 6.50% |
| Tamilnad Mercantile Bank | 7.25% | 7.00% | 7.00% | 6.90% | 6.90% | 6.90% |
| UCO Bank | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Union Bank of India | 6.75% | 6.60% | 6.60% | 6.70% | 6.70% | 6.70% |
| United Bank of India | 6.25% | 6.25% | 6.25% | 6.00% | 6.00% | 6.00% |
| Yes Bank | 7.25% | 7.65% | 7.65% | 7.25% | 7.25% | 7.25% |
Bank FD Interest
The post compares the interest rate across all major banks in India. This would help you choose the best offering across banks and tenures.
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..
All 3 are public sector banks and safe for fixed deposit. Pick the one which offers highest interest rate for the duration you want to invest.
Other option would be Time Deposit in Post Office. Safe and higher interest rate.
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.
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.
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.
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.
Thanks for sharing your experience. This would be very helpful for our readers!
BANDHAN Bank ???? Recurring Deposit interest is 8.5%????
Thanks will include Bandhan Bank in future interest rate comparisons!
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
In most cases banks have quarterly compounding on their Fixed and recurring deposits.
Along with that kindly advice what are the best options of investment for NRI’s.
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.
Both Banks are small private sector banks and safe for FD. There is no recent history of default by private banks.
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.
Think you missed Central BANK of india 1-2 Years @ 8.0% , SBP @ 7.77 % 1-2 years
Thanks for pointing this out – will update the above post for December
Sir I m a government servant & want exemption from income tax ,,Fd income tax se rebate deti h kya,,,,, q
there are 5 year tax saving Fixed Deposit which you can do to save tax u/s 80C
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.
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.
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.
Thank you, Amit!
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.
i would like to enquire, if any indian bank do long term FD. e.g., 20 yrs on current interest rate ?
Most banks offer maximum tenure of 10 Years. State Bank of Patiala offers 8.85% for 18 years which is for Girl Child
Tnx Amit ji. Is this long term deposit / investment is tax free ?
No – the interest received is fully taxable