Fixed Deposits are safe and secure investment options for beginners and pros. You can earn attractive interest from banks depending on the amount of money you put in the account.
Let us look at the top banks and their interest rates so you decide which bank is best for FD for you!
A Fixed Deposit, known as an FD in short, is a type of term deposit. You can deposit a sum of money in an FD for a specific period. You earn a cumulative interest on the money throughout the time, and get it as a lump sum in the end.
Here are some salient features of a Fixed Deposit -
Can be opened online as well as offline
You have to invest a huge amount as a lump sum
You can deposit an amount as low as Rs.1,000
Tenures range from 7 days to 10 years
Banks allow automatic renewal of FDs
Banks also allow you to take loans for up to 90% of the amount in your FD
Now that you know what a Fixed Deposit is, let us try to see which of the top banks is best for opening an FD. The most important factor that your decision will depend on is the interest rate offered by the bank.
Here is a list of the top banks in India and the interest rates they offer on FDs -
|
Name of the Bank |
General Public |
Senior Citizens |
|
3.00% - 7.00% |
4.00% - 7.50% |
|
|
4.25% - 7.45% |
4.75% - 7.90% |
|
|
4.00% - 7.40% |
4.00% - 7.90% |
|
|
2.80% - 7.25 % |
3.30% - 7.75 % |
|
|
3.50% - 7.25% |
4.00% - 7.75% |
|
|
4.00% - 7.30% |
4.50% - 7.80% |
|
|
2.90% - 7.05% |
Additional 0.25% for tenures up to 1 year and 0.50% for tenures over 1 year |
|
|
2.65% - 6.50% |
3.15% - 7.00% |
|
|
2.80% - 7.40% |
3.30% - 7.90% |
|
|
3.00% - 7.61% |
3.50% - 8.11% |
|
|
3.50% - 7.00% |
4.00% - 7.50% |
|
|
3.00% - 7.20% |
3.50% - 7.85% |
|
|
3.00% - 7.75% |
3.75% - 8.50% |
|
|
3.00% - 7.25% |
3.50% - 7.75% |
|
|
3.00% - 8.00% |
3.50% - 8.50% |
|
|
IndusIndIndusInd Bank |
3.50% - 7.75% |
4.00% - 8.25% |
|
3.00% - 7.00% |
3.50% - 7.50% |
|
|
2.75% - 7.40% |
3.25% - 7.90% |
|
|
5.25% - 7.25% |
5.75% - 7.75% |
|
|
3.25% - 7.75% |
3.75% - 8.25% |
|
|
3.00% - 7.85% |
3.75% - 8.35% |
|
|
4.00% - 7.50% |
4.00% - 7.50% |
|
|
5.00% - 7.00% |
5.00% - 7.50% |
|
|
2.50% - 7.50% |
2.50% - 8.00% |
|
|
3.00% - 8.00% |
3.00% - 8.00% |
|
|
3.00% - 7.40% |
3.50% - 7.90% |
|
|
3.50% - 7.05% |
4.00% - 7.55% |
|
|
3.50% - 7.40% |
3.90% - 7.80% |
|
|
3.25% - 7.50% |
3.75% - 8.00% |
Note: Rates mentioned as of 16th April 2024 and can be revised by the bank without any notice. Please check with the bank before opening an account.
The rate of interest is decided by the bank but it also varies depending on some factors. Some of them are -
The tenure refers to the number of days or years you keep your money in the FD. In the case of an FD, you have to specify while opening the account how long you want the tenure to be.
Generally, medium to long-term tenures attract higher interest rates as compared to shorter tenures.
For opening an FD, you have to invest the whole amount as whole. The higher the amount you invest, the more interest you will earn.
Your age also plays a role in deciding the interest you will earn. Most banks offer 0.25% to 0.50% higher interest to senior citizens. Thus, if you are above the age of 60, you can get a higher interest rate.
Fixed deposits are great investment options to meet short or long-term life goals. You can start an FD to save up for a vacation, your wedding, or to buy a gadget. The best part is that you get the principal amount as well as the interest amount as a lump sum at the end of your tenure.
Your money does not dapple in the market when you invest in FDs, which makes it a safe option. You get the interest that is promised to you while opening the account.
However, note that FDs are not tax-saving investment options. You have to pay taxes according to your tax-slab on the interest you earn.
Almost all top banks offer more than 7.00% as fixed deposit interest. However, Deutsche Bank India offers up to 8.00% interest on fixed deposits.
SBI offers 3.00% - 7.00% interest on fixed deposits for the general public. Senior citizens above the age of 60 get 0.50% interest, i.e., 4.00% - 7.50%.
You can choose a fixed deposit based on the interest rate offered by the bank, the application process, and the penalty charges on premature withdrawals.
Some banks offer a Fixed Deposit monthly income if the account holder has chosen a monthly interest payout. However, generally, FDs are paid out as a lump sum at the end of the tenure.
The minimum amount you can invest in a fixed deposit depends on the bank you choose. Most banks allow you to invest as low as Rs.1,000 in fixed deposits.
Thank you. Your feedback is important to us.