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

The post lists down the rate of interest on Bank fixed deposits as of April 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 State Bank of India, Punjab national Bank, Bank of Baroda, Ratnakar bank, Axis Bank, Yes Bank and some smaller banks have raised their fixed deposit interest rates substantially in last 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 (366 days) at 7.50%.

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 Ratnakar Bank (91 days to 364 days) at 7.15% .

BankDescriptionInterest Rate
Ratnakar Bank91 days to 364 days7.15%
City Union Bank181 days to 364 days7.00%
DCB Bank6 months to less than 15 months7.00%
IDFC Bank181 – 365 days7.00%
Karnataka Bank180 days7.00%
Ratnakar Bank46 days to 90 days7.00%
Repco Bank90 days – 364 days7.00%
South Indian Bank91 days7.00%
Karur Vysya Bank91 Days to 180 Days6.90%
Yes Bank3 months to < 6 months6.90%
Yes Bank46 to 90 days6.85%
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%
Lakshmi Vilas Bank181 – 364 days6.75%
Tamilnad Mercantile Bank180 days to less than 12 months6.75%
Union Bank of India10 Month to 14 Month6.75%
Kotak Mahindra Bank181 Days to 364 Days6.70%
Yes Bank6 months to < 1 Year6.70%
Kotak Mahindra Bank180 Days6.60%
Axis Bank9 months < 1 Year6.50%
Indus Ind Bank270 days or below 1 years6.50%
Standard Charted Bank181 – 364 days6.50%
Union Bank of India180 day to <10 Months6.50%
State Bank of IndiaGovernment Bank Benchmark5.75% – 6.40%
ICICI BankPrivate Bank Benchmark4.00% – 6.50%


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 IDFC Bank (366 days) at 7.50%.

BankDescriptionInterest Rate
IDFC Bank366 days7.50%
Repco BankRepco Mahila (18 Months, Exclusively for Women)7.35%
Deutsche Bank1 Year to 2 Years7.25%
IDFC Bank361 – 1095 days7.25%
Karnataka Bank450 Days7.25%
Lakshmi Vilas Bank725 Days7.25%
Ratnakar Bank12 months to less than 24 months7.25%
Repco Bank1 Year & Above – 2 years7.25%
DCB Bank15 months to less than 24 months7.15%
Lakshmi Vilas Bank17 Months to less than 30 Months7.15%
City Union Bank365 days – 5 Years7.10%
Karnataka Bank1 year to 2 years7.10%
Lakshmi Vilas Bank1 Year to less than 17 months7.10%
South Indian Bank600 Days7.10%
Yes Bank18 Months 8 Days to 18 Months 18 Days7.10%
Bandhan Bank1 year to less than 2 years7.00%
DCB Bank6 months to less than 15 months7.00%
J&K Bank1 year to less than 2 years7.00%
Karur Vysya Bank2 years and above7.00%
Standard Charted Bank21 Months – 2 Years7.00%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.00%
Yes Bank1 Year <= 10 years7.00%
Standard Charted Bank18 Months – 21 Months6.95%
Axis Bank17 months < 10 Years6.90%
Kotak Mahindra Bank390 Days (12 months 25 days)6.90%
Standard Charted Bank1 Year – 375 days6.90%
Indus Ind Bank1 Years to below 1 Years 2 Months6.85%
Kotak Mahindra Bank365 Days to 23 Months6.80%
Axis Bank1 Year < 17 months6.75%
Federal BankAbove 1 year to 2 years6.75%
HDFC Bank1 year 1 day – 1 year 3 days6.75%
Indus Ind Bank1 Years 2 Months to below 2 Years6.75%
Punjab and Sind Bank1 Year – 2 Years6.75%
Punjab National Bank1 Year – 3 Years6.75%
South Indian Bank1 year to 2 years6.75%
Syndicate Bank1 year to 2 years6.75%
Union Bank of India10 Month to 14 Month6.75%
Bank of BarodaAbove 1 year to 400 days6.70%
Corporation Bank555 days only6.70%
Federal Bank1 year6.70%
Federal Bank15 Months6.70%
Kotak Mahindra Bank23 Months to less than 3 years6.70%
Bank of India1 Year & above to less than 2 Yrs6.60%
Central Bank of India1 yr to less than 2 yrs6.60%
Corporation Bank444 days only6.60%
Dhanalakshmi Bank1 Year and above upto & inclusive of 2 years6.60%
Oriental Bank of Commerce1 year to less than 2 year6.60%
State Bank of IndiaGovernment Bank Benchmark6.40% – 6.60%
ICICI BankPrivate Bank Benchmark6.60% – 6.75%
Post Office FD (1 year)Post Office6.60%
Post Office FD (2 years)Post Office6.70%

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) at 7.50%

BankDescriptionInterest Rate
Deutsche Bank5 Years7.50%
DCB Bank24 months to 60 months7.25%
IDFC Bank361 – 1095 days7.25%
Ratnakar Bank24 months to less than 36 months7.25%
Yes Bank36 Months 10 Days to 36 Months 20 Days7.25%
Digibank by DBS2 years & 6 months7.20%
IDFC Bank3 years 1days – 10 years7.20%
Lakshmi Vilas Bank30 months to less than 36 months7.20%
Lakshmi Vilas Bank36 months to 120 months7.15%
Ratnakar Bank36 months to less than 240 months7.15%
City Union Bank365 days – 5 Years7.10%
Karur Vysya Bank2 years and above7.00%
Repco BankAbove 2 years – 5 Years7.00%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.00%
Yes Bank1 Year <= 10 years7.00%
Axis Bank17 months < 10 Years6.90%
Tamilnad Mercantile Bank3 Years & above6.90%
Bandhan Bank2 years to less than 5 years6.80%
Catholic Syrian Bank3 Years6.75%
Indus Ind Bank2 years to below 2 years 6 Months6.75%
Punjab National Bank1 Year – 3 Years6.75%
Kotak Mahindra Bank23 Months to less than 3 years6.70%
Syndicate BankAbove 2 year & upto 5 years6.60%
Punjab and Sind BankAbove 3 Year – 10 Years6.55%
State Bank of IndiaGovernment Bank Benchmark6.70%
ICICI BankPrivate Bank Benchmark6.50%
Post Office FD (2 years)Post Office6.90%
Post Office FD (3 years)Post Office7.10%
Post Office FD (5 years)Post Office7.60%


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 days – 10 years) and DCB Bank (More than 60 months to 120 months) at 7.20%.

BankDescriptionInterest Rate
DCB BankMore than 60 months to 120 months7.20%
IDFC Bank3 years 1days – 10 years7.20%
Lakshmi Vilas Bank36 months to 120 months7.15%
Ratnakar Bank36 months to less than 240 months7.15%
Karur Vysya Bank2 years and above7.00%
Yes Bank1 Year <= 10 years7.00%
Axis Bank17 months < 10 Years6.90%
Tamilnad Mercantile Bank3 Years & above6.90%
City Union BankAbove 5 years & upto 10 years6.70%
State Bank of IndiaGovernment Bank Benchmark6.75%
ICICI BankPrivate Bank Benchmark6.50%

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 Bank36 months to less than 240 months7.10%
IDBI Bank5 Years to 20 Years6.00%


Source:
Bank Websites                                          Last Updated: April 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

Fixed Deposit Interest Rate across all Banks

Highest Interest Rate on Bank Fixed Deposits -April 2018

Highest Interest Rate on Bank Fixed Deposits -April 2018

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 Bank6.60%6.50%6.50%6.50%6.50%6.50%
Andhra Bank6.50%6.50%6.25%6.25%6.25%6.25%
Axis Bank6.75%6.90%6.90%6.90%6.90%6.90%
Bandhan Bank7.00%7.00%6.80%6.80%6.80%6.40%
Bank of Baroda6.60%6.60%6.70%6.70%6.70%6.60%
Bank of India6.60%6.50%6.50%6.30%6.30%6.25%
Bank of Maharashtra6.50%6.25%6.25%6.00%6.00%6.00%
Canara Bank6.50%6.45%6.20%6.20%6.20%6.00%
Catholic Syrian Bank6.50%6.50%6.75%6.50%6.50%6.50%
Central Bank of India6.60%6.50%6.50%6.50%6.50%6.50%
Citibank5.00%5.00%5,25%NANANA
City Union Bank7.10%7.10%7.10%7.10%7.10%6.70%
Corporation Bank6.50%6.60%6.50%6.50%6.50%6.50%
DCB Bank7.00%7.15%7.25%7.20%7.20%7.20%
Dena Bank6.50%6.50%6.25%6.25%6.30%6.30%
Deutsche Bank6.00%7.25%6.90%7.00%7.50%NA
Dhanalakshmi Bank6.60%6.60%6.50%6.50%6.50%6.50%
Digibank by DBS6.75%7.20%6.25%6.25%6.40%NA
Federal Bank6.70%7.10%6.50%6.50%6.50%6.50%
HDFC Bank6.75%6.25%6.00%6.00%6.00%6.00%
ICICI Bank6.60%6.75%6.50%6.50%6.50%6.50%
IDBI Bank6.75%6.50%6.50%6.50%6.50%6.00%
IDFC Bank7.00%7.25%7.25%7.20%7.20%7.20%
Indian Bank6.50%6.25%6.25%6.00%6.00%6.00%
Indian Overseas Bank6.75%6.50%6.25%6.00%6.00%6.00%
Indus Ind Bank7.00%6.80%6.80%6.50%6.50%6.50%
J&K Bank7.00%6.50%6.50%6.25%6.25%6.25%
Karnataka Bank7.10%7.10%6.50%6.50%6.50%6.50%
Karur Vysya Bank6.75%7.00%7.00%7.00%7.00%7.00%
Kotak Mahindra Bank6.85%6.80%6.70%6.25%6.25%6.25%
Lakshmi Vilas Bank7.20%7.25%7.15%7.15%7.15%7.15%
Oriental Bank of Commerce6.60%6.50%6.50%6.40%6.40%6.40%
Post Office FD6.60%6.70%6.90%NA7.40%NA
Punjab and Sind Bank6.75%6.75%6.60%6.55%6.55%6.55%
Punjab National Bank6.60%6.75%6.75%6.25%6.25%6.25%
Ratnakar Bank7.25%7.25%7.25%7.15%7.15%7.15%
Repco Bank7.25%7.00%7.00%7.00%7.00%NA
South Indian Bank6.75%7.10%6.50%6.50%6.50%6.50%
Standard Charted Bank6.75%6.85%6.50%6.50%6.50%NA
State Bank of India6.40%6.60%6.70%6.70%6.75%6.75%
Syndicate Bank6.75%6.75%6.60%6.60%6.60%6.50%
Tamilnad Mercantile Bank7.00%7.00%7.00%6.90%6.90%6.90%
UCO Bank6.50%6.50%6.40%6.25%6.25%6.25%
Union Bank of India6.75%6.50%6.50%6.50%6.50%6.50%
United Bank of India6.10%6.00%6.00%6.00%6.00%6.00%
Vijaya Bank6.50%6.60%6.50%6.50%6.50%6.25%
Yes Bank7.00%7.00%7.00%7.00%7.00%7.00%


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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230 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – April 2018

  1. what about Gramin Vikas Banks ?

  2. What about Deautsche Bank? Is it safe to invest 5 lacks for 5 years?

  3. axis bank ,missing ji

  4. Debadutta Mohapatra says:

    What about United Bank of India?

  5. Hi Amit,

    I checked IDBI Bank interest rate but didn’t find FD for 366 days.

  6. Hi Amit,

    I have one query on investment on land . Let’s say I buy a land for (Rs 5 lakh) for investment purpose and keep it as it is and sale it after 5 years at price Rs 10 Lakh . What will be the taxation rate for the holding period of 5 years and then when I sale the land ?

    • You will have to pay capital gains tax. Please use this Capital Gains Calculator for Property

      • Thanks Amit for the quick response . I have couple of queries on PPF .

        1) I have a PPF a/c on my name in SBI and another PPF a/c on my son’s name who is a minor.
        Can you please let me know the taxation rule/benefit I will get for both of these PPF a/cs.
        2) My wife is a home maker. Will I get any additional benefit if I open a PPF a/c on my wife’s name and i deposit the money on behalf of her (say gift to her) ?
        3) In one financial year if I deposit rs 2 Lakh in PPF , will I get 8.1% interest on Rs 1.5 lakh or I will get 8.1% interest on Rs 2 Lakh ?

        • 1. You get benefit up to Rs 1.5 lakhs only as that is the limit for Sec 80C.
          2. You would not get any tax benefit as the interest earned is tax free. But by having account in your wife name gives 2 benefits: a> Your PPF investment limit increase 2> The interest earned is your wife’s income and if she invests it further clubbing rule of taxation would not apply. Read: How your wife can help you save taxes?
          3. The limit for deposit on PPF has been increased to Rs 1.5 Lakhs per year from Budget 2014. If you manage to deposit more than that in financial year, no interest would be paid on that. You can learn more on PPF here.

  7. Hello sir….I am a student,I want to do fixed deposit of 5 lacs for 3 year..which bank should I choose to get higher return and how much I will get?please guide me

  8. VINOTHEASWRAN says:

    hi amit,why hdfc bank was not included in fd interest rates.please add it for comparison

    • Have included banks which give higher interest than SBI/ICICI as they are biggest banks in government/private sector. We would soon expand this list to include other major banks too!

  9. Hi Amit,

    Really appreciate your quick response. I have few follow up queries .
    May I request to respond them as well ?

    Option 1 : Can you please tell me know the calculation how did you get Rs 82,432 interest for 10 lakh FD investment @ 8% interest rate . Also please let me know how did you get Rs 56,961 after tax deduction.

    Option 2 : Please tell me calculation for RD deposit also .

    Requesting you to tell me the above calculations for my knowledge purpose so that I can calculate them on my own in future.

    Option 3 : Thanks for suggesting to for “Arbitrage Mutual Fund”. But I have below query on “”Arbitrage Mutual Fund”” .

    a) I am unable to understand how normal mutual fund is different than “Arbitrage Mutual Fund” .
    b) For 1 year I should go for Growth or Dividend (Reinvestment/ Payout) option ?

    c) Please suggest where and how can I buy “Arbitrage Mutual Fund” ? can I buy it online on my own or I need to go some agency/bank/office to buy them ?

    d) Is it advisable to investment the entire 10 Lakh or do an SIP over 1 year ? I am not sure whether SIP option is available in “Arbitrage Mutual Fund” or not .

    e) Also please suggest me some good “Arbitrage Mutual Fund” which I should buy .

    Thanks again in advance for all your help and suggestion/advice

    • Hi Amit,

      could you please respond to my query ? Thanks …

    • You can search for any RD/FD calculator online and get your interest numbers. The tax applied is 30.9% on interest earned. There might be slight variation depending on what compounding you choose. For most banks its quarterly.

      Ans 3:
      a. Arbitrage Mutual Funds invest in arbitrage opportunities available in the market. Learn more at this link.
      b. Investing in Arbitrage Fund: Growth or Dividend Reinvestment?
      c. You can buy this fund as you buy any other mutual fund – online/offline or through Demat account.
      d. There is NO need to do SIP as this is not volatile fund. You can invest in one go.
      e. You can look at IDFC/ICICI arbitrage funds

      • chittaranjan mishra says:

        Thanks Amit for your response.

        As I understood arbitrage funds can be beneficial if market is too much volatile so that there is any opportunities of arbitrage.

        I also read about balance fund which invest both on equity(60 to 65%) and debt (35 to 40%).
        I would like to know your opinion on these ? How do you compare balance fund against arbitrage fund for investment for little more than 1 year.

        I am alaready having SBI Magnum Balanced Fund and have invested in it since last 2 years. But this is going negative for some time now . Hence I am little confused which one to go for .
        Need your suggestion.

        • Arbitrage Funds DO NOT have negative returns for long periods. The worst I have seen is -0.01% return in 1 month period. So its relatively safe if you consider principal safety.

          Balanced funds invest in equities and hence there are chances of negative return and by the same virtue more chances of out-performance when markets outperform.

  10. Hi Amit,

    I have one query. I would like to invest around Rs 10 Lakh for one year .
    I came to know that Bandhan bank is currently giving the highest FD interest rates of 8% for one year among all the banks . It also offers same 8% interest rates for RD for 1 year .

    At the same time, Bandhan bank also gives 4.25% interest rates on savings account for less than 1 lakh balance and 6% interest rates on savings account for more than 1 lakh balance.

    Considering that I fall on highest tax bracket(30% slab) , I am wondering which of the below options I should choose to invest for 1 year ?

    Option 1 : Invest in FD for 1 year to get 8% interest rate and pay tax on the interest
    Option 2 : Invest in an RD for 1 year by depositing every month around Rs 84,000 (= 10 lakh divided by 12 months).

    With option 2 , I would get same 8% interest rates from RD . Also I would get the benefit of 6% interest for keeping more than 1 lakh in savings a/c . Also there will be no tax upto Rs 10,000 on the savings a/c interest.
    I just need to pay the tax on interest of the RD amount.

    Option 3 : Any other option you can suggest which will be more beneficial

    Can you please suggest which option I should choose . Please explain me with the calculation to understand better.

    I would really appreciate for your quick response. Thanks …

    • You have thought a lot about getting that EXTRA return and make investment less taxing. Here are my suggestions:
      Option 1: Do FD at one go – You get Rs 82,432 in 1 year. After Tax return Rs 56,961
      Option 2: Keep money in savings account & do RD of 83,333 – You get Rs 44,141 in RD interest & Rs 27,500 in saving account interest. Taking Rs 10,000 as tax free on savings bank account interest, you should be left with Rs 52,594 after tax.
      So option 1 of doing complete FD at one go is still beneficial and simple.

      YOu must look at Arbitrage Mutual Fund as you are in 30% tax bracket. The returns are similar to 1 year FD and gains are tax free after 1 year and taxed at 15.45% in sold before 1 year.

  11. I am very happy but I have no money I don’t work so happy
    Truth
    P bank me money n lgay

  12. Dr Mallappa Sajjan says:

    SIR u have given us very useful information

  13. Hi Amit Ji,

    Your inputs are very appreciated,

    I have 1 lack rupees in my hand and planning to save for my Nephew (9 years old) for 5 to 10 years (need to get some high/better returns). Which one is better, FD/Mutual. Please guide me.

    Thanks in advance………. 🙂

  14. Hi amit i would like to save 4 lakh for 1 year and generate income for this amount every month for the next 1 year. what do you think will be the best deposit to pick?

  15. i want to ask u that i am NRI i have 50 lakh in hand…so which plan is best for me to get intrest monthly …garry singh

  16. Dear Amit,

    I have read all the blogs of you, it’s really very good, Kindly please suggest me, I was saving in smaller amount’s from my salary, Now they are seven lacks currently. my plan is to save for an House in future might be after six/seven years. Can you please suggest me where to Invest them to get more returns at the end ? or Can I get monthly interest amount from that seven lack’s if I invest in anywhere? Please suggest me there is no one to guide me, Please reply me, Thank you.

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