Top Fixed Deposit Interest Rates ★ May 2021

The post lists down the rate of Fixed Deposit Interest Rates as of May 1, 2021. 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

  1. Most banks offer FDs for tenure of 7 Days to 10 Years.
  2. The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
  3. 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.
  4. Most banks compound interest quarterly
  5. Most New Small Finance Banks offer higher interest rate across tenures.
  6. 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.
  7. 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)
  8. In case of Senior citizens TDS would be deducted at the rate of 10%, if the interest income exceeds Rs 50,000
  9. In case the PAN number is not updated with the bank, the TDS rate is 20%
  10. There might be penalty for pre-mature withdrawal of Fixed Deposits

Top Fixed Deposit Interest Rates

The highest interest rate on fixed deposit is offered by Jana Small Finance Bank (1188 Days – 1191 Days) at 7.51%. In traditional banks DCB Bank and Yes Bank are offering 6.75% for 36 months to 120 months tenure.

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.

How to Pay 0 Income Tax on Salary of Rs 20+ Lakh (FY 2020-21)?

As you can see with the above income tax calculation, salary components and salary structure plays a very important role in how much income tax you pay. We have come up with some optimised salary structure using which you pay NO income tax even with CTC of more than Rs 20 Lakhs.

Best Fixed Deposit Interest Rates for Less than 1 Year

  • The highest interest rate is offered by ESAF Small Finance Bank (183 days to 727 days) at 6.50%
  • In traditional banks DCB Bank offers 5.95% for 6 months to less than 12 months tenure
BankType of BankTenureInterest Rate
ESAF Small Finance BankSmall Bank183 days to 727 days6.50%
Suryoday Small Finance BankSmall BankAbove 9 months to less than 1 Year6.25%
ESAF Small Finance BankSmall Bank91 days to 181 days6.00%
Jana Small Finance BankSmall Bank181-364 days6.00%
Suryoday Small Finance BankSmall BankAbove 6 months to 9 months6.00%
Utkarsh Small Finance BankSmall Bank181 Days to 364 Days6.00%
DCB BankPrivate6 months to less than 12 months5.95%
Indus Ind BankPrivate270 days or below 1 year5.75%
Yes BankPrivate9 months to < 1 Year5.75%
DCB BankPrivate91 days to less than 6 months5.50%
Indus Ind BankPrivate211 days to 269 days5.50%
Ratnakar BankPrivate241 days to 364 days5.50%
Yes BankPrivate6 months to < 9 months5.50%
Equitas Small Finance BankSmall Bank181 – 364 days5.40%
AU Small Finance BankSmall Bank6 Months 1 Day to 12 Months5.25%
Capital Small Finance BankSmall Bank180 Days to less than 1 Year5.25%
Bandhan BankPrivate6 months to less than 1 year5.25%
IDFC First BankPrivate181 days – less than 1 year5.25%
Indus Ind BankPrivate181 days to 210 days5.25%
Tamilnad Mercantile BankPrivate180 dys to less than 1 Year5.25%
Ratnakar BankPrivate181 days to 240 days5.25%
Ujjivan Small Finance BankSmall Bank180 Days to 364 Days5.20%
Karnataka BankPrivate91 days to 364 days5.20%
Axis BankPrivate11 months 25 days < 1 year 5 days5.15%
Nainital BankPrivate270 days and above but less than 1 year5.15%
Nainital BankPrivate180 days and above but less than 270 days5.05%
North East Small Finance BankSmall Bank181-365 Days5.00%
City Union BankPrivate271 days to 364 days5.00%
Ratnakar BankPrivate91 days to 180 days5.00%
Yes BankPrivate3 months to < 6 months5.00%
Capital Small Finance BankSmall Bank90 Days to 179 Days4.75%
State Bank of IndiaGovernmentGovernment Bank Benchmark2.90% – 4.40%
ICICI BankPrivatePrivate Bank Benchmark2.50% – 4.40%
Best Fixed Deposit Interest Rates for Less than 1 Year

Do you Know about Hidden Charges in Banks?

Do you know you pay a few thousand rupees every year to hidden charges of banks. This could range from more known fines for not maintaining minimum balance amount to lesser know POSDEC charge of ICICI Bank. There could be charges for ATM usage, branch visits, cheque books and so on. Do read our article on Hidden Charges in Banks and what you can do about it?

Best Fixed Deposit Interest Rates for 1 – 2 Years

  • The highest interest rate is offered by Jana Small Finance Bank (366 – 1095 Days) and Utkarsh Small Finance Bank (700 Days) at 7.00%
  • In traditional banks DCB Bank offers 6.70% for 700 days tenure
BankType of BankTenureInterest Rate
Jana Small Finance BankSmall Bank366 – 1095 Days7.00%
Utkarsh Small Finance BankSmall Bank700 Days7.00%
Jana Small Finance BankSmall Bank1 Year6.75%
Suryoday Small Finance BankSmall Bank1 Year to 2 years6.75%
Utkarsh Small Finance BankSmall Bank365 Days to 3652 Days6.75%
North East Small Finance BankSmall Bank366 days to 1095 days6.75%
DCB BankPrivate700 days6.70%
Equitas Small Finance BankSmall Bank2 years 1 day to 3 years6.65%
ESAF Small Finance BankSmall Bank183 days to 727 days6.50%
Ujjivan Small Finance BankSmall Bank1 Year to 2 Years6.50%
DCB BankPrivate18 months to less than 36 months6.50%
Indus Ind BankPrivate1 year to below 61 month6.50%
Equitas Small Finance BankSmall Bank18 months 1 day to 2 years6.40%
AU Small Finance BankSmall Bank12 Months 1 Day to 15 Months6.35%
DCB BankPrivate15 months to less than 18 months6.35%
AU Small Finance BankSmall Bank15 Months 1 Day to 24 Months6.25%
Capital Small Finance BankSmall Bank400 Days6.25%
Ratnakar BankPrivate12 months to less than 36 months6.25%
Yes BankPrivate1 years < 2 years6.25%
DCB BankPrivate12 months to less than 15 months6.05%
Capital Small Finance BankSmall Bank1 Year to less than 10 Years6.00%
Bandhan BankPrivate1 year to less than 3 years5.75%
Tamilnad Mercantile BankPrivate1 Year to less than 2 years5.75%
Tamilnad Mercantile BankPrivate2 Years to less than 3 Years5.65%
City Union BankPrivate365 days to 550 days5.50%
Federal BankPrivate16 Months5.50%
IDFC First BankPrivate1 Year – 2 years5.50%
Karur Vysya BankPrivate1 year to less than 3 years5.50%
Equitas Small Finance BankSmall Bank1 year to 18 months5.40%
South Indian BankPrivate1 year to less than 3 years5.40%
Standard Charted BankForeign18M < 21M5.40%
Nainital BankPrivateAbove 18 months but less than or equal to 10 years5.35%
Dhanalakshmi BankPrivate640 days5.30%
Karnataka BankPrivate1 year to 2 Years5.30%
Standard Charted BankForeign1yr – 375days5.30%
Union Bank of IndiaGovernment>1 Year to 2 Years5.30%
Axis BankPrivate18 Months < 2 years5.25%
Dhanalakshmi BankPrivate1 Year and above upto & inclusive of 2 years5.25%
Indian Overseas BankGovernment444 days5.25%
Indian Overseas BankGovernment2 yrs and above5.25%
Nainital BankPrivate1 year and above but less than or equal to 18 months5.25%
Punjab and Sind BankGovernment1 Year – 10 Years5.25%
Standard Charted BankForeign21M < 2 Yrs5.25%
Union Bank of IndiaGovernment1 Year5.25%
Canara BankGovernment1 year to less than 2 years5.20%
Standard Charted BankForeign376 days < 18 Months5.20%
Axis BankPrivate11 months 25 days < 1 year 5 days5.15%
State Bank of IndiaGovernmentGovernment Bank Benchmark5.00% – 5.10%
ICICI BankPrivatePrivate Bank Benchmark4.90% – 5.00%
Post Office FD (1 year)Post OfficePost Office5.50%
Post Office FD (2 years)Post OfficePost Office5.50%
Best Fixed Deposit Interest Rates for 1 – 2 Years

How to generate Regular Monthly Income?

There can be several situations when we look for regular income. This is especially true for people after retirement without any pension. Also there would be new entrepreneurs who need regular income until their start-up stabilises. We tell you 13 investments which can generate regular income for you along with their pros and cons.

Best Fixed Deposit Interest Rates for 2 – 5 Years

  • The highest interest rate is offered by Jana Small Finance Bank (1188 Days – 1191 Days) at 7.51%
  • In traditional banks DCB Bank & Yes bank offers 6.75% for 36 months to 120 months tenure
BankType of BankTenureInterest Rate
Jana Small Finance BankSmall Bank1188 Days – 1191 Days7.51%
Jana Small Finance BankSmall Bank1096 – 1824 Days7.25%
Suryoday Small Finance BankSmall Bank5 Years7.25%
Suryoday Small Finance BankSmall BankAbove 3 Years to less than 5 Years7.10%
Suryoday Small Finance BankSmall BankAbove 2 Years to 3 Years7.00%
Equitas Small Finance BankSmall Bank888 days6.80%
Ujjivan Small Finance BankSmall Bank2 Years and 1 Day to 5 years6.75%
Utkarsh Small Finance BankSmall Bank365 Days to 3652 Days6.75%
North East Small Finance BankSmall Bank366 days to 1095 days6.75%
DCB BankPrivate36 months to 120 months6.75%
Yes BankPrivate3 Years to <= 10 years6.75%
AU Small Finance BankSmall Bank24 Months 1 Day to 36 Months6.50%
North East Small Finance BankSmall Bank1096 days to less than 1825 days6.50%
Indus Ind BankPrivate1 year to below 61 month6.50%
Yes BankPrivate2 years < 3 years6.50%
Capital Small Finance BankSmall Bank900 Days6.40%
Equitas Small Finance BankSmall Bank3 years 1 day to 5 years6.40%
Ratnakar BankPrivate36 months to less than 60 months6.40%
AU Small Finance BankSmall Bank36 Months 1 Day to 60 Months6.25%
ESAF Small Finance BankSmall Bank729 days to 1091 days6.25%
Deutsche BankForeign5 Years6.25%
Ratnakar BankPrivate12 months to less than 36 months6.25%
Capital Small Finance BankSmall Bank1 Year to less than 10 Years6.00%
ESAF Small Finance BankSmall Bank1093 days to 1819 days6.00%
IDFC First BankPrivate3 years 1 day – 5 years6.00%
Bandhan BankPrivate1 year to less than 3 years5.75%
City Union BankPrivate551 days to 3 years5.75%
IDFC First BankPrivate2 years 1 day – 3 years5.75%
Karur Vysya BankPrivate3 years to less than 5 years5.65%
South Indian BankPrivate5 years5.65%
Tamilnad Mercantile BankPrivate2 Years to less than 3 Years5.65%
Karnataka BankPrivateAbove 2 Year to 5 years5.55%
Union Bank of IndiaGovernment>3 Years to 5 Years5.55%
Bandhan BankPrivate3 years to less than 10 years5.50%
Canara BankGovernment3 years & above to less than 10 years5.50%
Catholic Syrian BankPrivate1100 days5.50%
Dhanalakshmi BankPrivateAbove 3 years upto & inclusive of 5 years5.50%
Digibank by DBSForeign3 years and above5.50%
Karur Vysya BankPrivate1 year to less than 3 years5.50%
South Indian BankPrivate3 years to less than 5 years5.50%
Tamilnad Mercantile BankPrivate3 Years to 10 Years5.50%
Union Bank of IndiaGovernment>2 Year to 3 Years5.50%
Canara BankGovernment2 years & above to less than 3 years5.40%
South Indian BankPrivate1 year to less than 3 years5.40%
Indian Overseas BankGovernment2 yrs and above5.25%
State Bank of IndiaGovernmentGovernment Bank Benchmark5.10% – 5.40%
ICICI BankPrivatePrivate Bank Benchmark5.15% – 5.35%
Post Office FD (2 years)Post OfficePost Office5.50%
Post Office FD (3 years)Post OfficePost Office5.50%
Post Office FD (5 years)Post OfficePost Office6.70%
Best Fixed Deposit Interest Rates for 2 – 5 Years

Additional Tax Exemption for Senior Citizens on Interest Income

Budget 2018 introduced a new section 80TTB, which gives additional tax exemption up to Rs 50,000 to Senior Citizens for interest income. Additionally, the threshold for TDS (Tax Deduction at Source) on interest income for Senior Citizens has been raised from Rs 10,000 to Rs 50.000 from FY 2018-19.  In case your income is less than the income tax threshold you can avoid TDS by filling and submitting Form 15H to relevant banks and financial institutions.

Best Fixed Deposit Interest Rates for 5 – 10 Years

  • The highest interest rate is offered by Utkarsh Small Finance Bank (365 Days to 3652 Days) at 6.75%
  • In traditional banks DCB Bank & Yes bank offers 6.75% for 36 months to 120 months tenure
BankType of BankTenureInterest Rate
Utkarsh Small Finance BankSmall Bank365 Days to 3652 Days6.75%
DCB BankPrivate36 months to 120 months6.75%
Yes BankPrivate3 Years to <= 10 years6.75%
Equitas Small Finance BankSmall Bank5 years 1 day to 10 years6.65%
Ratnakar BankPrivate60 months to 60 months 1 day6.60%
AU Small Finance BankSmall Bank60 Months 1 Day to 120 Months6.50%
Jana Small Finance BankSmall Bank1825 – 3660 Days6.50%
Suryoday Small Finance BankSmall BankAbove 5 years to 10 years6.50%
Indus Ind BankPrivate1 year to below 61 month6.50%
North East Small Finance BankSmall Bank1826 days to less than 3650 days6.25%
Deutsche BankForeign5 Years6.25%
Indus Ind BankPrivate61 month and above6.25%
Capital Small Finance BankSmall Bank1 Year to less than 10 Years6.00%
ESAF Small Finance BankSmall Bank1821 days to 3653 days6.00%
Ratnakar BankPrivate60 months 2 days to less than 120 months6.00%
Ujjivan Small Finance BankSmall Bank5 Years and 1 Day to 10 Years5.80%
Axis BankPrivate5 years to 10 years5.75%
Catholic Syrian BankPrivateOver 5 years upto and including 10 Years5.75%
IDFC First BankPrivate5 years 1 day – 10 years5.75%
Karur Vysya BankPrivate5 years and above5.75%
Karnataka BankPrivateAbove 5 year to 10 years5.70%
South Indian BankPrivate5 years5.65%
Dhanalakshmi BankPrivateAbove 5 years upto & inclusive of 10 years5.60%
Union Bank of IndiaGovernment>5 Years to 10 Years5.60%
State Bank of IndiaGovernmentGovernment Bank Benchmark5.40%
ICICI BankPrivatePrivate Bank Benchmark5.50%
Best Fixed Deposit Interest Rates for 5 – 10 Years

Mutual Fund or Fixed Deposit?

In case you are a bit investment savvy, pay tax at higher rates and take some risk you must evaluate SWP in liquid funds. SWP gives you almost similar returns as Banks FDs but with careful planning you can reduce your tax outgo. The added advantage of Mutual fund is there is No TDS. Also in case of emergency you can withdraw your liquid fund without any penalty, where as there may be some penalty on prematurely breaking your FD.

Best Fixed Deposit Interest Rates for more than 10 Years

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

BankType of BankTenureInterest Rate
Ratnakar BankPrivate121 months to less than 240 months6.00%
IDBI BankPrivate10 Years to 20 Years4.80%
Best Fixed Deposit Interest Rates for more than 10 Years

Source: Bank Websites                                 Last Updated: May 1, 2021

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

Best Fixed Deposit Interest Rates - April 2021
Best Fixed Deposit Interest Rates – May 2021

How much Taxes you Need to Pay this Year? Download Our Income Tax Calculator to Know your Numbers

Do you know how much tax you need to pay for the year? Have you taken benefit of all tax saving rules and investments? Should you use the “NEW” tax regime or continue with the old one? In case you have all these questions just Download the Free Excel Income Tax Calculator for FY 2021-22 (AY 2022-23) and get your answers.

Helpful Posts on Fixed Deposits

Summary of Fixed Deposit Interest Rates across 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.

BankType of Bank1 Year2 Years3 Years4 Years5 years5+ Years
AU Small Finance BankSmall Bank6.35%6.25%6.50%6.25%6.25%6.50%
Axis BankPrivate5.15%5.25%5.40%5.40%5.75%5.75%
Bandhan BankPrivate5.75%5.75%5.50%5.50%5.50%5.50%
Bank of BarodaGovernment4.90%5.00%5.10%5.25%5.25%5.25%
Bank of IndiaGovernment5.25%5.30%5.30%5.30%5.30%5.30%
Bank of MaharashtraGovernment4.90%4.90%4.90%4.90%4.90%4.90%
Canara BankGovernment5.20%5.40%5.50%5.50%5.50%5.50%
Capital Small Finance BankSmall Bank6.00%6.00%6.00%6.00%6.00%6.00%
Catholic Syrian BankPrivate5.00%5.00%5.00%5.25%5.25%5.75%
Central Bank of IndiaGovernment4.90%5.00%5.00%5.00%5.10%5.10%
CitibankForeign2.75%3.00%3.50%3.50%3.50%x
City Union BankPrivate5.00%5.50%5.50%5.50%5.50%5.25%
DCB BankPrivate6.05%6.50%6.75%6.75%6.75%6.75%
Deutsche BankForeign4.00%4.25%4.50%5.00%6.25%x
Dhanalakshmi BankPrivate5.25%5.40%5.40%5.50%5.50%5.60%
Digibank by DBSForeign4.25%4.50%5.50%5.50%5.50%5.50%
Equitas Small Finance BankSmall Bank6.50%6.65%6.65%6.40%6.40%6.65%
ESAF Small Finance BankSmall Bank6.50%6.50%6.25%6.00%6.00%5.50%
Federal BankPrivate5.10%5.50%5.35%5.35%5.50%5.50%
Fincare Small Finance BankSmall Bankxxxxxx
HDFC BankPrivate4.90%4.90%5.15%5.30%5.30%5.50%
ICICI BankPrivate4.90%5.00%5.15%5.35%5.35%5.50%
IDBI BankPrivate4.90%5.00%5.25%5.25%5.25%5.25%
IDFC First BankPrivate5.75%5.75%6.00%6.00%6.00%5.75%
Indian BankGovernment5.00%5.10%5.25%5.25%5.25%5.15%
Indian Overseas BankGovernment5.20%5.25%5.25%5.25%5.25%5.25%
Indus Ind BankPrivate6.50%6.50%6.50%6.50%6.50%6.25%
J&K BankGovernment5.10%5.20%5.30%5.30%5.30%5.30%
Jana Small Finance BankSmall Bank7.00%7.00%7.25%7.25%7.25%6.50%
Karnataka BankPrivate5.30%5.55%5.55%5.55%5.55%5.70%
Karur Vysya BankPrivate5.50%5.50%5.65%5.65%5.75%5.75%
Kotak Mahindra BankPrivate4.50%5.00%5.10%5.25%5.30%5.30%
Nainital BankPrivate5.25%5.35%5.35%5.35%5.35%5.35%
North East Small Finance BankSmall Bank6.75%6.75%6.75%6.50%6.50%6.25%
Post Office Time DepositPost Office5.50%5.50%5.50%x6.70%x
Punjab and Sind BankGovernment5.25%5.25%5.25%5.25%5.25%5.25%
Punjab National BankGovernment5.10%5.10%5.25%5.25%5.25%5.25%
Ratnakar BankPrivate6.25%6.25%6.40%6.40%6.60%6.00%
South Indian BankPrivate5.40%5.40%5.50%5.50%5.65%5.50%
Standard Charted BankForeign5.30%5.40%5.35%5.35%5.35%x
State Bank of IndiaGovernment4.40%5.10%5.30%5.30%5.30%5.40%
Suryoday Small Finance BankSmall Bank6.75%7.00%7.10%7.10%7.25%6.50%
Tamilnad Mercantile BankPrivate5.75%5.75%5.65%5.50%5.50%5.50%
UCO BankGovernment4.90%5.00%5.00%5.00%5.00%5.00%
Ujjivan Small Finance BankSmall Bank6.50%6.75%6.75%6.75%6.75%5.80%
Union Bank of IndiaGovernment5.30%5.30%5.50%5.55%5.55%5.60%
Utkarsh Small Finance BankSmall Bank6.75%6.75%6.75%6.75%6.75%6.75%
Yes BankPrivate6.25%6.50%6.75%6.75%6.75%6.75%
Fixed Deposit Interest Rates across Banks

Best way to Double your Money

Who does not want more and wouldn’t you love to Double your money? For sure we all would – we have listed 7 authentic investments which you can use to double your money. The post talks not only about the returns but also the risks associated with each investment.

Fixed Deposit Interest Rates FAQs

✅Which is the best fixed deposit scheme in India?

The highest interest rate on fixed deposit is offered by Jana Small Finance Bank (1188 Days – 1191 Days) at 7.51%. In traditional banks DCB Bank and Yes Bank are offering 6.75% for 36 months to 120 months tenure.

✅What is best FD for less than year?

The highest interest rate is offered by ESAF Small Finance Bank (183 days to 727 days) at 6.50%. In traditional banks DCB Bank offers 5.95% for 6 months to less than 12 months tenure

✅What is the top Fixed Deposit Interest Rates for 1 year in banks?

The best FD interest rates for 1 year deposit is offered by Jana Small Finance Bank (366 – 1095 Days) and Utkarsh Small Finance Bank (700 Days) at 7.00%. In traditional banks DCB Bank offers 6.70% for 700 days tenure

✅What is the top Fixed Deposit Interest Rates for 2 years in banks?

The best FD interest rates for 2 years is offered by Jana Small Finance Bank and Suryoday Small Finance Bank at 7.00%. In traditional banks DCB Bank offers 6.50%.

✅What is the top Fixed Deposit Interest Rates for 3 years in banks?

Jana Small Finance Bank offers 7.5% for 366 – 1095 Days FD. DCB Bank & Yes Bank offers 6.75% for 3 year fixed deposit scheme.

✅What is the top Fixed Deposit Interest Rates for 5 years in banks?

Jana Small Finance Bank and Suryoday Small Finance Bank offers 7.25% for 5 year fixed deposit scheme. DCB Bank & Yes Bank offers 6.75% for 36 months to 20 months tenure.

✅What is the top Fixed Deposit Interest Rates for more than 5 years in banks?

Most banks offer FD up to 10 years tenure. DCB Bank, Yes bank and Utkarsh Small Finance Bank offers 6.75% for 10 year deposit.

✅What is the maximum tenure of bank fixed deposits?

Most bank offer FD up to 10 years. However Ratnakar bank and IDBI bank offer deposits up to 20 years.

✅Are Bank FDs safe?

Generally speaking bank FDs are safe as banks are rigorously monitored by RBI. The FD in Government owned banks like SBI, PNB are the safest. This is because government would intervene and pay the depositors. Next is big private banks like ICICI & HDFC followed by smaller private banks. After this we have small finance banks. Co-operative banks are worst of the lot and I would not trust them with my money. So until there are compelling circumstances keep away from co-operative banks. You can learn from recent example where Yes Bank was rescued by the government and no depositors suffered. However depositors of PMC Bank (a co-operative bank) are still suffering. You can learn more about this in our detailed article about How safe is your Bank Fixed Deposit?

✅Which is better investment – Mutual Funds or Fixed Deposits?

The investment pre-tax return is almost similar for fixed deposit and liquid mutual funds. However SWP in liquid mutual funds provide a tax efficient way of generating regular income. So, liquid mutual funds is better for you if you are investment savvy, can bear some risk and are in higher tax bracket. Else stay with FD in well known banks.

✅How is FD taxed?

The interest earned on fixed deposit is taxable as per your income tax slab. For senior citizens an additional exemption of Rs 50,000 under section 80TTB is available for interest income from banks/post office.

✅What are the advantages of fixed deposits?

FDs are popular as it have various advantages:
– Its safe especially if you stay with Public or large private banks or post office
– It has guaranteed returns
– its easy to understand and handle

✅What are the disadvantages of fixed deposits?

The biggest disadvantage of FD is the interest offered on FD hardly beats inflation. And even if it beats inflation, it does not especially for higher tax brackets. This way you actually loose value of money in the long run.
The second disadvantage is unpredictability of interest rate. Interest rates go up and down. In case your FD matures when the interest rate is low, you may not be able to invest and generate the same returns as you used to do earlier.

✅Can I get loan on my fixed deposit?

Yes most banks offer loans up to 90% to 95% of fixed deposit. Not only this some banks also offer credit card against fixed deposits.

✅Can I get monthly interest from my fixed deposit?

The interest rates mentioned on bank websites are for cumulative FD. However if you want to receive monthly income from FD, you need to contact the bank. Most banks have the arrangement where they can pay you monthly interest. A point to note the interest would be lower than what you see on the website. This is because the interest rates on websites are for quarterly compounding but if you want monthly payment, the interest rate has to be adjusted accordingly. You can also look out for products similar to Post Office MIS.

253 thoughts on “Top Fixed Deposit Interest Rates ★ May 2021”

  1. Dear Amit,
    I would like to invest in FD or any other instrument where the rating of the institution is AAA and I shall get the interest in every half year / year without hassles. I am a senior citizen. It may be FDs of state/central govt, banks other NBFCs with AAA rating. Any past experience with that institution will be appreciated. The interest rate should be +-10 %.
    Can you please suggest.

  2. Dear Amit,

    We appreciate your valuable support to update the Bank Interest rate according to latest changes of 05 Feb 2018.

    Regards,
    Mohit

  3. As search on online i found Bajaj Finance offering highest interest rate on fixed deposit in comparison of Banks that is true? if Yes so it is save for investment?

  4. Are u sure the FD interest rates here are for real ??? For example, the Standard Chartered Bank only offers 1.3%/pa for amount >S$100,000 for one yr. How come & not >7% as stated in the abv table ???

  5. chandan kumar Mitra

    Hi sir myself chandan mitra, i want to know if i get interest more than 10000 per financial year in FD, so what to do save my money from TDS deduction? and suggest invest plan to get 1000000 in 15 years may be invest in lumsum or SIP which would be more safer. kindly help thanks.

  6. Ujjivan small finance bank has give u the 8% interest rates and for senior citizen 8.5% if u have interred plz contact me

    regards
    Madhu
    9480543700

  7. Dear sir,
    I want to take loan and also want to invest money in FD SO
    Tell me about loan against FD is better option or Home loan is better considering interest rates.

  8. Dear Amit ,
    i am plan for rs 1000000 inwest in fd and save tex.any other option aveleble to ern profit in safe garrented mode of inwest,please sajes me.

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