Setting up a fixed deposit account has become a straightforward process. You can either opt for online banking services or visit the nearest branch of any bank.
Fixed deposits are an ideal option for individuals seeking a low-risk investment avenue. They guarantee a stable interest rate on the principal amount for the entire duration of the deposit, facilitating gradual growth over time. And this may be an ideal time to invest in fixed deposits as many banks usually come out with special FD schemes or rates during the festive season.
A significant benefit of FDs is their adaptable tenure, which enables investors to manage several deposits with different timeframes. You may choose to establish an FD account with your existing bank or opt for another institution that offers more competitive interest rates. The decision rests entirely with you; however, it is important to note that the procedures may vary, especially concerning KYC and documentation requirements if you select a bank with which you have no previous association.
Fixed deposits provide assurance for your principal investment while generating a reliable income stream. If you have a lump sum that you do not plan to access in the near future, depositing it in an FD account could be a wise choice. The returns on FDs are stable and unaffected by market volatility, ensuring a consistent interest rate for the agreed duration.
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Setting up a fixed deposit account has become a straightforward process. You can either opt for online banking services or visit the nearest branch of any bank. If you decide to open an FD account with the same bank where you hold a savings account, you can avoid the KYC process and easily transfer funds.
Moreover, banks offer senior citizens an additional 50 basis points on fixed deposit interest rates. Therefore, if your household includes senior citizens, it may be beneficial to open fixed deposits in their names to take advantage of the higher interest rates.
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Fixed deposits can also act as a dependable resource for urgent financial needs or emergencies, as the funds can be accessed promptly. Additionally, it is possible to obtain a loan against your FD; however, it is recommended to carefully examine the terms and conditions before proceeding.
It is crucial to understand that withdrawing your fixed deposit before the maturity date will result in a lower interest rate and a penalty on the fixed deposit amount. It is recommended to carefully consider the pros and cons and to compare the interest rates provided by different banks for fixed deposits prior to making a conclusive decision.
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Here is a list of India’s leading banks, including SBI, Axis Bank, Kotak Bank, HDFC Bank, ICICI Bank, and Bank of India, among others, all of which offer competitive interest rates on fixed deposits. You can evaluate the interest rates and terms ranging from 1 to 5 years and make your selection based on your preferences.
| Bank Fixed Deposit Rates | |||||
| Bank Name | Interest Rates (p.a.) | ||||
| Highest slab | 1-year tenure (%) | 3-year tenure (%) | 5-year tenure (%) | ||
| % | Tenure | ||||
| SMALL FINANCE BANKS | |||||
| AU Small Finance Bank | 8.00 | 18 months | 7.25 | 7.50 | 7.25 |
| Equitas Small Finance Bank | 8.25 | 444 days | 8.10 | 8.00 | 7.25 |
| ESAF Small Finance Bank | 8.25 | 2 years to less than 3 years | 6.00 | 6.75 | 6.25 |
| Jana Small Finance Bank | 8.25 | 365 days to 1095 days | 8.25 | 8.25 | 7.25 |
| NorthEast Small Finance Bank | 9.00 | 546 days to 1111 days | 7.00 | 9.00 | 6.25 |
| Suryoday Small Finance Bank | 8.65 | 2 years 2 days | 6.85 | 8.60 | 8.25 |
| Ujjivan Small Finance Bank | 8.25 | 12 months | 8.25 | 7.20 | 7.20 |
| Unity Small Finance Bank | 9.00 | 1001 days | 7.85 | 8.15 | 8.15 |
| Utkarsh Small Finance Bank | 8.50 | 2 years to 3 years; 1500 days | 8.00 | 8.50 | 7.75 |
| PRIVATE SECTOR BANKS | |||||
| Axis Bank | 7.25 | 15 months to less than 2 years | 6.70 | 7.10 | 7.00 |
| Bandhan Bank | 8.05 | 1 year | 8.05 | 7.25 | 5.85 |
| City Union Bank | 7.50 | 333 days | 7.00 | 6.50 | 6.25 |
| CSB Bank | 7.75 | 401 days | 5.00 | 5.75 | 5.75 |
| DBS Bank | 7.50 | 376 days to 540 days | 7.00 | 6.50 | 6.50 |
| DCB Bank | 8.05 | 19 months to 20 months | 7.10 | 7.55 | 7.40 |
| Federal Bank | 7.40 | 50 months ; 777 days | 6.80 | 7.00 | 6.60 |
| HDFC Bank | 7.40 | 4 Year 7 Months (55 months) | 6.60 | 7.00 | 7.00 |
| ICICI Bank | 7.25 | 15 months to 2 years | 6.70 | 7.00 | 7.00 |
| IDFC First Bank | 7.75 | 400 days to 500 days | 6.50 | 6.80 | 6.75 |
| IndusInd Bank | 7.75 | 1 year to 2 years | 7.75 | 7.25 | 7.25 |
| Jammu & Kashmir Bank | 7.00 | 1 year to less than 3 years | 7.00 | 6.75 | 6.50 |
| Karur Vysya Bank | 7.60 | 760 days – Special Deposit | 7.00 | 7.00 | 7.00 |
| Karnataka Bank | 7.50 | 375 days | 7.35 | 6.50 | 6.50 |
| Kotak Mahindra Bank | 7.40 | 390 days to less than 23 months | 7.10 | 7.00 | 6.20 |
| RBL Bank | 8.10 | 500 days | 7.50 | 7.50 | 7.10 |
| SBM Bank India | 8.25 | Above 18 months to less than 2 years 3 days | 7.05 | 7.30 | 7.75 |
| South Indian Bank | 7.40 | 1 year 7 days | 6.70 | 6.70 | 6.00 |
| Tamilnad Mercantile Bank | 8.10 | 300 days (TMB300) | 7.00 | 6.50 | 6.50 |
| YES Bank | 8.00 | 18 months | 7.25 | 7.25 | 7.25 |
| PUBLIC SECTOR BANKS | |||||
| Bank of Baroda | 7.30 | 400 days – Bob Utsav | 6.85 | 7.15 | 6.80 |
| Bank of India | 7.30 | 400 days | 6.80 | 6.50 | 6.00 |
| Bank of Maharashtra | 7.40 | 333 days | 6.75 | 6.50 | 6.50 |
| Canara Bank | 7.25 | 444 days | 6.85 | 6.80 | 6.70 |
| Central Bank of India | 7.45 | 444 days | 6.85 | 6.75 | 6.50 |
| Indian Bank | 7.30 | 400 days – IND SUPER | 6.10 | 6.25 | 6.25 |
| Indian Overseas Bank | 7.30 | 444 days | 7.10 | 6.50 | 6.50 |
| Punjab National Bank | 7.25 | 400 days | 6.80 | 7.00 | 6.50 |
| Punjab & Sind Bank | 7.45 | 555 days | 6.30 | 6.00 | 6.00 |
| State Bank of India | 7.25 | 444 days – Amrit Vrishti | 6.80 | 6.75 | 6.50 |
| Union Bank of India | 7.40 | 333 days | 6.80 | 6.70 | 6.50 |
| FOREIGN BANKS | |||||
| Deutsche Bank | 8.00 | Above 1 year to 3 years | 7.00 | 8.00 | 7.50 |
| HSBC Bank | 7.50 | 601 to 699 days | 4.00 | 7.00 | 6.00 |
| Standard Chartered Bank | 7.50 | 1 year to 375 days | 7.50 | 7.10 | 6.75 |
| Source: Paisabazaar.com | |||||
| Interest rates as of 23rd October 2024 | |||||
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