FD Rates in India
Fixed deposits are a safe investment option that offers stable interest rates, special rates for elderly citizens, a variety of interest payment methods, no market risk, and income tax benefits. Before forming a new fixed deposit or renewing an existing one, it is critical to evaluate the latest fixed deposit rates offered by the country's leading banks.
The most recent fixed deposit rates for the year 2021 are listed below.
Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a) |
State Bank of India FD | 2.90% to 5.40% | 3.40% to 6.20% |
ICICI Bank FD | 2.50% to 5.50% | 3.00% to 6.00% |
HDFC Bank FD | 2.50% to 5.50% | 3.00% to 6.25% |
Punjab National Bank FD | 2.90% to 5.25% | 3.50% to 5.75% |
Canara Bank FD | 2.90% to 5.25% | 2.90% to 5.75% |
Axis Bank FD | 2.50% to 5.75% | 2.50% to 6.50% |
Bank of Baroda FD | 2.80% to 5.25% | 3.30% to 5.75% |
IDFC Bank FD | 2.75% to 5.75% | 3.25% to 6.25% |
Bank of India FD | 2.85% to 5.05% | 3.35% to 5.55% |
Punjab and Sind Bank FD | 3.00% to 5.30% | 3.50% to 5.60% |
Highest FD rates in india 2021
- Muthoot Capital now offers the highest FD interest rates in India, which is 8% for a 5-year term.
- For regular citizens, Utkarsh Small Finance Bank, Suryodaya Bank, and Jana Bank are now offering the best FD rates in India of 6.75 %.
- RBL, SBM, YES, and Induslnd are among the leading banks offering the best fixed deposit rates in India. They are providing an interest rate of 6.5 % for general citizens and up to 7.25 % for senior citizens.
Best FD rates in india by top banks
Bank Name | FD Interest Rates | Deposit Tenure | |
Regular Customers | Senior Citizens (60 years and above) | ||
RBL | 6.30% | 6.80% | 1 year to 1 year 1 month |
SBM | 7.00% | 7.50% | 60 months to 60 months 1 day |
YES | 6.50% | 7.00% | 5 years and up to 10 years |
DCB | 5.95% | 6.45% | 36 months to 120 months |
IndusInd | 6.50% | 7.00% | 1 year to 5 years |
IDFC First | 5.20% | 5.70% | 3 years 1 day to 5 years |
Axis | 5.50% | 6.00% | 5 years to 10 years |
ICICI | 5.50% | 6.00% | 5 years 1 day to 10 years |
HDFC | 5.50% | 6.00% | 5 years 1 day up to 10 years |
SBI | 5.40% | 6.20% | 5 years and up to 10 years |
Kotak Mahindra | 5.25% | 5.75% | 5 years and up to 10 years |
Bank of Baroda | 5.25% | 5.75% | Above 5 years and up to 10 years |
Things to consider to choose the best fd plan in india
Now that you've learned about interest rates, use this simple method to get the greatest fixed deposit in 2021.
Compare Fixed deposit rates in India:
- The first step in selecting a fixed-term deposit plan is to compare the interest rates offered by various providers. Several factors influence the interest rate, including the size of the deposit, the candidate's age, and the term chosen.
- Small finance banks and private sector banks currently provide the highest Fd interest rates in India, ranging from 7% to 8.25 percent per annum, which is 2 percent to 2.5 percent more than public sector banks and major private sector banks.
FD tenure:
When it comes to choosing the best-fixed deposit scheme, the ability to deposit your money is critical. Fixed deposits are offered by banks for periods ranging from seven days to ten years. Consider liquidity and the time horizon of your financial goals while deciding on the FD tenure. If you disregard your financial goals and terminate your FD accounts early in the event of a financial emergency, the bank will charge you a penalty of up to 1% of the effective interest rate. Your deposit's net interest will be reduced as a result of this.
Credibility of the Provider:
- Several banks offer the highest FD interest rates in India. However, this may come with a risk. Deposits should always be made at authorized banks and NBFCs that are certified by ICRA, CRISIL, and other organisations.
- In addition, if you want to invest in Corporate Fixed Deposits, you should select company funds based on deposit credit ratings. High-credit-rating company deposits (for example, FAAA, FAA) are deemed safe. These scores indicate the likelihood of timely payment of the deposit amount (principal) and interest.
Penalty Rates:
You may need to take a partial withdrawal from your FD in the event of an emergency. Certain suppliers charge a hefty penalty or lower the interest rate if you do so. As a result, before selecting the best fixed deposit, you must examine the penalty amounts.
Cumulative and Non-Cumulative Foreign Direct Investments
Depending on your financial goals, you can choose between periodic returns and interest at maturity. Non-cumulative FDs payout weekly, quarterly, or semi-annually, making them perfect for retirees looking for a consistent source of income. Cumulative fixed deposits, on the other hand, allow you to compound your interest over time and retrieve your money at maturity. Furthermore, cumulative fixed bank deposits pay larger interest rates than their equivalents.
Application Procedures
The application process varies depending on the FD provider. When selecting a provider, look for one that has an online application process that allows you to open an FD from the convenience of your own home rather than having to visit a bank. It's advisable to choose with a company that takes both online and offline applications.
Frequently asked questions
What is the shortest time a fixed deposit can be held?
A fixed deposit account must be opened for at least seven days.
What is the smallest amount that can be deposited into a fixed-income account?
The minimum deposit amount varies by bank. It could cost as little as Rs.50.
Is it possible to earn monthly interest on a fixed deposit?
Yes, you can earn income on your fixed deposit monthly.
Is it wise to invest in an FD?
Fixed deposits are one of the most secure investing options accessible. The interest rates offered by banks on FDs make them an attractive investment.
Can I take money out of a Tax Saver Term Deposit before it matures?
No, because a tax saver term deposit has a 5-year lock-in period, you cannot withdraw it early.
Is there a limit to how long an FD account can be opened for?
A fixed deposit account can be opened for a maximum of ten years.
Is it true that all NBFCs provide the option of starting a 10-year FD account?
No, not all NBFCs provide you with the option of opening a 10-year FD.
What is the greatest amount of tax savings I can earn from tax-deferred savings accounts?
The maximum exemption available under tax-saving FDs is Rs.1.5 lakh.
The tax benefit on tax saver FDs is provided under which section of the Income Tax Act?
Section 80C of the Income Tax Act of 1961 provides tax relief.
Is there a penalty if you withdraw your FD early?
Yes, banks will charge you a penalty if you take your money from an FD early.