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

The post lists down the rate of interest on Bank fixed deposits as of August 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, 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 Ratnakar Bank (241 days to 364 days) and Kotak Mahindra Bank (271 Days to less than 12 months) at 7.25% .

BankDescriptionInterest Rate
Kotak Mahindra Bank271 Days to less than 12 months7.25%
Ratnakar Bank241 days to 364 days7.25%
Ratnakar Bank91 days to 240 days7.15%
City Union Bank181 days to 364 days7.00%
DCB Bank6 months to less than 15 months7.00%
HDFC Bank9 months 1 day < 1 Year7.00%
IDFC Bank181 – 365 days7.00%
Indus Ind Bank270 days to below 1 years7.00%
Kotak Mahindra Bank181 Days to 270 Days7.00%
Lakshmi Vilas Bank181 – 364 days7.00%
Ratnakar Bank46 days to 90 days7.00%
Repco Bank90 days – 364 days7.00%
Standard Charted Bank181-210 days7.00%
Yes Bank46 to 90 days7.00%
Karur Vysya Bank91 Days to 180 Days6.90%
Yes Bank3 months to < 6 months6.90%
South Indian Bank92 days to less than 15 months6.85%
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%
Kotak Mahindra Bank91 – 180 Days6.75%
Tamilnad Mercantile Bank180 days to less than 12 months6.75%
Union Bank of India10 Month to 14 Month6.75%
Standard Charted Bank211 – 364 days6.70%
Yes Bank6 months to < 1 Year6.70%
Axis Bank9 months < 1 Year6.50%
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 (731 – 1095 days) at 8.00%.

BankDescriptionInterest Rate
IDFC Bank731 – 1095 days8.00%
Deutsche Bank1 Year to lass than 2 Years7.75%
Ratnakar Bank12 months to less than 24 months7.75%
Repco BankRepco Mahila (18 Months, Exclusively for Women)7.70%
Indus Ind Bank1 Years to below 1 Years 2 Months7.65%
Repco Bank1 Year & Above – 2 years7.60%
IDFC Bank366 – 730 days7.50%
Lakshmi Vilas Bank18 Months to 120 Months7.50%
Yes Bank18 Months 8 Days to 18 Months 18 Days7.50%
Indus Ind Bank1 Years 2 Months to below 2 Years7.40%
Kotak Mahindra Bank12 months – less than 15 months7.40%
South Indian Bank500 Days7.40%
Standard Charted Bank18 Months – 2 Years7.40%
Yes Bank12 Months 10 Days to 12 Months 20 Days7.40%
Lakshmi Vilas Bank12 Months to less than 18 Months7.35%
Bandhan BankAbove 1 year to less than 2 years7.30%
Federal BankAbove 1 year to 15 Months7.30%
Karnataka Bank1 year to 2 years7.30%
DCB Bank15 months to less than 24 months7.25%
HDFC Bank1 year – 2 Years7.25%
Kotak Mahindra Bank15 months – less than 2 Years7.25%
Standard Charted Bank1 Year – 375 days7.25%
Tamilnad Mercantile Bank1 Year7.15%
Axis Bank1 year < 14 months7.10%
Canara Bank555 Days (Canara Shikhar Deposit)7.10%
City Union Bank365 days – 5 Years7.10%
Vijaya Bank500 Days7.10%
Yes Bank1 Year <= 10 years7.10%
Canara Bank444 Days (Canara Shikhar Deposit)7.05%
Vijaya Bank400 Days7.05%
Axis Bank14 months < 10 Years7.00%
Bandhan Bank1 year7.00%
Canara BankAbove 1 year to less than 2 years7.00%
Citibank401 – 540 Days7.00%
DCB Bank6 months to less than 15 months7.00%
Digibank by DBS1 year to less than 5 Years7.00%
Federal BankAbove 15 months7.00%
J&K Bank1 year to less than 3 years7.00%
Karur Vysya Bank1 years and above7.00%
South Indian Bank15 months to upto and incl. 5 years7.00%
Tamilnad Mercantile Bank1 Year to less than 3 Years7.00%
Federal Bank1 year6.85%
South Indian Bank92 days to less than 15 months6.85%
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 Benchmark6.70%
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) 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%
IDFC Bank731 – 1095 days8.00%
DCB Bank36 months to 60 months7.75%
City Union Bank1000 Days7.50%
Deutsche Bank2 Year to lass than 5 Years7.50%
Digibank by DBS2 years & 6 months7.50%
Lakshmi Vilas Bank18 Months to 120 Months7.50%
Ratnakar Bank24 months to less than 60 months7.50%
Bandhan Bank2 years to less than 5 years7.40%
DCB Bank24 months to 36 months7.30%
Indus Ind Bank2 years to below 3 years7.25%
Yes Bank36 Months 10 Days to 36 Months 20 Days7.25%
Yes Bank36 Months 10 Days to 36 Months 20 Days7.25%
City Union Bank365 days – 5 Years7.10%
HDFC Bank2 years – 5 Years7.10%
Yes Bank1 Year <= 10 years7.10%
Axis Bank14 months < 10 Years7.00%
Digibank by DBS1 year to less than 5 Years7.00%
Federal BankAbove 15 months7.00%
Indus Ind Bank3 years to below 61 month7.00%
J&K Bank1 year to less than 3 years7.00%
Karur Vysya Bank1 years and above7.00%
Kotak Mahindra Bank2 years- less than 5 years7.00%
Repco BankAbove 2 years – 5 Years7.00%
South Indian Bank15 months to upto and incl. 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%
Indian Overseas Bank3 Yrs and above6.80%
State Bank of IndiaGovernment Bank Benchmark6.75% – 6.80%
ICICI BankPrivate Bank Benchmark7.00%
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 Day – 10 years) at 8.25%.

BankDescriptionInterest Rate
IDFC Bank3 years 1 Day – 10 years8.25%
Digibank by DBS5 Years7.50%
Lakshmi Vilas Bank18 Months to 120 Months7.50%
DCB BankMore than 60 months to 120 months7.25%
Ratnakar Bank36 months to less than 120 months7.25%
Yes Bank1 Year <= 10 years7.10%
Axis Bank14 months < 10 Years7.00%
Federal BankAbove 15 months7.00%
Indus Ind Bank3 years to below 61 month7.00%
Karur Vysya Bank1 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 Bank5 Years to 20 Years6.00%


Source:
Bank Websites                                          Last Updated: August 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 - August 2018

Highest Interest Rate on Bank Fixed Deposits – August 2018

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 Bank6.60%6.50%6.50%6.50%6.50%6.50%
Andhra Bank6.60%6.60%6.50%6.50%6.50%6.50%
Axis Bank7.10%7.00%7.00%7.00%7.00%7.00%
Bandhan Bank7.00%7.30%7.40%7.40%6.40%6.40%
Bank of Baroda6.70%6.60%6.70%6.70%6.70%6.60%
Bank of India6.60%6.65%6.40%6.40%6.35%6.35%
Bank of Maharashtra6.50%6.60%6.60%6.00%6.00%6.00%
Canara Bank7.00%7.00%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%
Citibank6.25%7.00%6.00%NANANA
City Union Bank7.10%7.10%7.10%7.10%7.10%6.70%
Corporation Bank6.60%6.80%6.50%6.50%6.50%6.50%
DCB Bank7.00%7.25%7.30%7.75%7.75%7.25%
Dena Bank6.60%6.60%6.60%6.25%6.30%6.30%
Deutsche Bank7.75%7.75%7.50%7.50%8.25%NA
Dhanalakshmi Bank6.60%6.60%6.50%6.50%6.50%6.50%
Digibank by DBS7.00%7.00%7.50%7.00%7.50%NA
Federal Bank6.85%7.30%7.00%7.00%7.00%7.00%
HDFC Bank7.25%7.25%7.10%7.10%7.10%6.00%
ICICI Bank6.60%7.00%7.00%7.00%7.00%7.00%
IDBI Bank6.75%6.70%6.70%6.70%6.75%6.00%
IDFC Bank7.50%8.00%8.25%8.25%8.25%8.25%
Indian Bank6.60%6.50%6.50%6.00%6.00%6.00%
Indian Overseas Bank6.60%6.75%6.80%6.80%6.80%6.80%
Indus Ind Bank7.65%7.40%7.25%7.00%7.00%6.75%
J&K Bank7.00%7.00%7.00%6.25%6.25%6.25%
Karnataka Bank7.30%7.30%6.50%6.50%6.50%6.50%
Karur Vysya Bank7.00%7.00%7.00%7.00%7.00%7.00%
Kotak Mahindra Bank7.25%7.40%7.00%7.00%7.00%6.50%
Lakshmi Vilas Bank7.35%7.50%7.50%7.50%7.50%7.50%
Oriental Bank of Commerce6.75%6.75%6.75%6.70%6.75%6.75%
Post Office Time Deposit6.60%6.70%6.90%NA7.40%NA
Punjab and Sind Bank6.75%6.75%6.60%6.55%6.55%6.55%
Punjab National Bank6.75%6.75%6.75%6.25%6.25%6.25%
Ratnakar Bank7.75%7.50%7.50%7.50%7.25%7.25%
Repco Bank7.60%7.60%7.00%7.00%7.00%NA
South Indian Bank6.85%7.40%7.00%7.00%7.00%6.50%
Standard Charted Bank7.25%7.40%7.00%6.50%6.50%NA
State Bank of India6.70%6.75%6.80%6.80%6.85%6.85%
Syndicate Bank6.70%6.80%6.60%6.60%6.60%6.50%
Tamilnad Mercantile Bank7.15%7.00%7.00%6.90%6.90%6.90%
UCO Bank6.60%6.60%6.60%6.60%6.60%6.60%
Union Bank of India6.75%6.70%6.70%6.75%6.75%6.75%
United Bank of India6.25%6.00%6.00%6.00%6.00%6.00%
Vijaya Bank6.75%7.10%6.75%6.75%6.75%6.75%
Yes Bank7.10%7.10%7.10%7.10%7.10%7.10%

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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232 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – August 2018

  1. Hi sir,
    I am planning to FD 1000000 in karur vysya bank,, is it safe, can u suggest about bank

  2. Suryanarayana A says:

    Jeevan Akshya pension scheme intrest rate ..any proposal to reduce from sept 17 , i want to invest 50 L

  3. Is Ratnakar Bank reliable bank for investing in FD of rs 10lakhs

  4. is it safe to deposit 50,00,000 in RBL for FD?

  5. AU small finance bank is safe for FD.

    Which bank providing the highest rate of interest for 2 years & 6 months (2.6)

  6. Hi Amit,

    I am planning to invest around 10L for a year in FD. I have thought about IDFC Bank. Requesting your inputs or something else you would like to suggest. Thank you.

    -Amit

  7. If RBL is safe for 20 years term FD for 20 Lakhs ? as we know till 1 Lakh is safe against the insurance ? please advice

    • Yes RBL is private bank and quite safe. You can do fixed deposit with them for 20 years. Its just that you should keep you eyes/ears open for any bad news regarding the bank you put your money in.

  8. As the interest rate on PPF another cut down by 0.10% from 1 july, what will be the effect of this on fixed deposit interest rates?

  9. Hello sir, thank you so much for this latest information. I have sold the property in Hyderabad and now wanted to go for FD @ 33 lakhs. Would you please suggest which bank is good to invest (tax saving)?

    Many thanks

  10. Hi, is Urban cooperative bank safe for fd.

    • Any co-operative bank is riskier than government and private banks. Can’t comment specifically for Urban cooperative bank.

  11. Sir,
    I am planning to FD 25 Lakhs. As I wanted to get fixed monthly income . So my question is .
    Q1- On FD , can we get monthly income as a interest ?
    Q2- Is it good to FD in once bank or shall I split my amount in multiple banks,
    Q3- Which is the safe bank to do the FD? And with good interest rate.

    Please clarify my doubt .

    • Here are your answers:
      1. Yes you can get monthly interest credited to your savings account
      2. You can keep all money in one bank if its government or large private bank. If co-operative bank I would advise to split
      3. All government/private banks are safe. Co-operative banks are riskier. Just keep eyes/ears open about whats happening with your bank.

  12. Suryoday bank is safe for deposit

  13. Manish Diwakar says:

    I am living in Patna…can I make a FD in Deutsche Bank either online or offline. As there is no branch of Deutsche Bank in Patna, Bihar.

    • You might want to check that with Deutsche Bank customer care or alternatively use “Apply Now” and they can come with any possible solution!

  14. Navaneeth says:

    Dear sir,

    Is REPCO bank is safer for Fixed deposit?

  15. How can I save tax if In fd please mail me reply

    • You cannot save taxes on interest earned in FD. However you can invest in Debt mutual funds which are more tax efficient provided the investment tenure is for more than 3 years.

  16. SENTHILKUMAR R says:

    Very nice information. With this I understand post office is best than other Banks.

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