Fixed Deposit Highlights:
- Most banks offer FDs for tenure of 7 Days to 10 Years.
- Some banks like The Ratnakar Bank, IDBI Bank and State Bank of Patiala 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
- There might be penalty for pre-mature withdrawal of Fixed Deposits
Fixed Deposit Interest Rates:
The highest interest rate is offered by The Ratnakar Bank at 9.0% for 24 to 36 months Fixed Deposit.
Also IDFC Bank and Bandhan Bank are the newest banks to open and are offering higher rate of interest across deposit tenures.
For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 4 slabs:
- FD for Less than 1 Year
- FD for 1 to 2 years
- FD for 2 to 5 Years
- FD for More than 5 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.
Interest Rate for FD of Less than 1 Year:
The highest interest rate is offered by Bandhan Bank (181 days to 364 days) and The Ratnakar Bank (241 days to 364 days) at 8.25%.
| Bank | Description | Interest Rate |
| The Ratnakar Bank | 241 days to 364 days | 8.25% |
| Bandhan Bank | 181 days to 364 days | 8.25% |
| Bandhan Bank | 91 days to 180 days | 8.00% |
| IDFC Bank | 271 – 365 days | 8.00% |
| Lakshmi Vilas Bank | 200 Days | 8.00% |
| Karur Vysya Bank | 91 Days to 180 Days | 7.90% |
| DCB Bank | 6 months to less than 12 months | 7.75% |
| J&K Bank | 271 days to less than 1 year | 7.75% |
| Indus Ind Bank | 181 days to below 1 year | 7.75% |
| Canara Bank | 270 days to less than 1 year | 7.75% |
| IDFC Bank | 181 – 270 days | 7.75% |
| State Bank of India | Government Bank Benchmark | 5.25% – 7.00% |
| ICICI Bank | Private Bank Benchmark | 4.00% – 7.40% |
Interest Rate for Fixed Deposit of 1 – 2 Years:
The highest interest rate is offered by The Ratnakar Bank (12 months to less than 24 months) and Bandhan Bank at 8.50%.
| Bank | Description | Interest Rate |
| The Ratnakar Bank | 12 months to less than 24 months | 8.50% |
| Bandhan Bank | 1 year to less than 2 years | 8.50% |
| IDFC Bank | 366 – 400 days | 8.25% |
| Lakshmi Vilas Bank | 500 days | 8.25% |
| DCB Bank | 18 months to less than 24 months | 8.15% |
| DCB Bank | 13 months to less than 18 months | 8.10% |
| IDFC Bank | 271 – 365 days | 8.00% |
| IDFC Bank | 401 – 540 days | 8.00% |
| Indus Ind Bank | 1 year to below 1 years 2 months | 8.00% |
| J&K Bank | 1 year to less than 5 years | 8.00% |
| DCB Bank | 12 months to less than 13 months | 7.90% |
| Andhra Bank | 400 Days | 7.90% |
| Yes Bank | 12 Months 10 Days to 12 Months 20 Days | 7.90% |
| Yes Bank | 18 Months 8 Days to 18 Months 18 Days | 7.90% |
| State Bank of Hyderabad | SBH Kuber-400 days | 7.85% |
| Tamilnad Mercantile Bank Ltd | 555 days | 7.85% |
| Lakshmi Vilas Bank | 1 year to less than 18 months | 7.80% |
| Punjab and Sind Bank | 1 year to below 2 years | 7.80% |
| Tamilnad Mercantile Bank Ltd | 20 Months 20 Days | 7.80% |
| State Bank of Patiala | 1 year to 555 days | 7.77% |
| State Bank of India | Government Bank Benchmark | 7.25% – 7.50% |
| ICICI Bank | Private Bank Benchmark | 7.40% – 7.50% |
| Post Office FD (1 Year) | Post Office | 7.10% |
Interest Rate for Fixed Deposit of 2 – 5 Years
The highest interest rate is offered by The Ratnakar Bank (24 months to less than 36 months) at 9.0%.
| Bank | Description | Interest Rate |
| The Ratnakar Bank | 24 months to less than 36 months | 9.00% |
| Bandhan Bank | 2 years to less than 3 years | 8.50% |
| Bandhan Bank | 3 years to less than 5 years | 8.25% |
| DCB Bank | 24 months to 60 months | 8.20% |
| J&K Bank | 1 year to less than 5 years | 8.00% |
| Yes Bank | 24 Months 12 Days to 24 Months 24 Days | 7.95% |
| Tamilnad Mercantile Bank Ltd | 777 Days | 7.90% |
| Lakshmi Vilas Bank | 18 Months to less than 5 years | 7.90% |
| Indus Ind Bank | 2 years 6 months to below 2 years 9 months | 7.90% |
| Central Bank of India | 777 Days | 7.80% |
| State Bank of India | Government Bank Benchmark | 7.00% – 7.50% |
| ICICI Bank | Private Bank Benchmark | 7.50% |
| Post Office FD (2 years) | Post Office | 7.20% |
| Post Office FD (3 years) | Post Office | 7.40% |
| Post Office FD (5 years) | Post Office | 7.90% |
Interest Rate for FD of More than 5 Years
The highest interest rate is offered by The Ratnakar Bank (36 months to less than 120 months) at 8.75%.
| Bank | Description | Interest Rate |
| The Ratnakar Bank | 36 months to less than 120 months | 8.75% |
| The Ratnakar Bank | 120 months to 240 months | 8.50% |
| Bandhan Bank | 5 Years to 10 years | 8.00% |
| DCB Bank | More than 60 months to 120 months | 8.00% |
| Lakshmi Vilas Bank | 5 years and above | 7.80% |
| Tamilnad Mercantile Bank Ltd | 5 Years to 10 Years | 7.80% |
| State Bank of India | Government Bank Benchmark | 7.00% |
| ICICI Bank | Private Bank Benchmark | 7.25% |
Source: Bank Websites Last Updated: April 8, 2016
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