FD Interest Rates Today

Today’s FD Interest Rates of Top Indian Banks – Nov 18, 2024

Bank NameGeneral Public FD Interest RatesSenior Citizen FD Interest Rates
Axis Bank  3.00% to 7.10% 3.50% to 7.75%
Bandhan Bank 3.00% to 7.85% 3.75% to 8.35%
Bank of Baroda 4.25% to 7.25% 4.75% to 7.65%
Bank of India3.00% to 7.25% 3.00% to 7.75% 
Canara Bank 4.00% to 7.25% 4.00% to 7.75%
Central Bank of India 3.50% to 6.75%  4.00% to 7.25%
HDFC Bank 3.00% to 7.20% 3.50% to 7.75%
ICICI Bank  3.00% to 7.10% 3.50% to 7.65%
IDBI Bank  3.00% to 7.00%  3.50% to 7.50%
IDFC FIRST Bank  3.00% to 7.75% 3.50% to 8.25%
Indian Bank2.80% to 7.25%3.30% to 7.75%
IndusInd Bank  3.50% to 7.50% 4.25% to 8.25%
Karnataka Bank 3.50% to 7.25% 3.90% to 7.65%
Kotak Mahindra Bank 2.75% to 7.25% 3.25% to 7.80%
Punjab National Bank 3.50% to 7.25% 4.00% to 7.75%
RBL Bank 3.50% to 8.00% 4.00% to 8.50%
SBM Bank India4.25% to 7.75%4.75% to 8.25%
South Indian Bank  2.90% to 7.40% 3.40% to 7.90%
State Bank of India 3.00% to 7.00% 4.00% to 7.50%
Tamilnad Mercantile Bank 5.25% to 7.00% 5.25% to 7.50%
UCO Bank 2.90% to 6.50% 3.15% to 7.00%
Union Bank of India 3.00% to 7.20% 3.50% to 7.75%
YES Bank 3.25% to 7.75% 3.75% to 8.25%
Note: As per the bank’s discretion, the interest rates listed in the above table might fluctuate.

Fixed Deposit (FD)

A Fixed Deposit (FD) is a popular investment avenue in India, favored for its safety, guaranteed returns, and ease of investment. It’s essentially a financial instrument where you invest a lump sum amount for a predetermined period with a bank or Non-Banking Financial Company (NBFC). In return for locking your money, you earn a fixed interest rate, typically higher than regular savings accounts.

FD interest rates for the general public range from 3.00% to 9.50% annually, depending on the chosen term length (7 days to 10 years). Senior citizens enjoy an additional 0.50% to 0.75% interest rate bonus compared to the general public.

Here’s a comprehensive guide to FDs, covering everything you need to know before investing:

Benefits of Fixed Deposits

Safety: FDs are one of the safest investment options, as your principal amount is guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakhs per depositor per bank.

Guaranteed returns: Unlike market-linked investments, FDs offer fixed interest rates throughout the tenure, providing predictable returns.

Flexibility: FDs come in various tenures, ranging from a few days to 10 years or more, allowing you to align your investment with your financial goals.

Regular income: You can choose to receive interest payouts monthly, quarterly, half-yearly, or annually, depending on your needs.

Tax benefits: Interest earned on FDs up to Rs. 10,000 is tax-free under Section 80TTA of the Income Tax Act. This deduction is allowed to all individuals and HUFs other than super senior citizens (those aged 60 or more) because they have a separate deduction under Section 80TTB.

Key Features of FDs

  • Principal amount: This is the lump sum you invest in the FD.
  • Tenure: This is the fixed period for which you lock your money.
  • Interest rate: This is the fixed rate you earn on your principal amount throughout the tenure.
  • Maturity date: This is the date on which your FD matures and you receive your principal amount along with the accrued interest.
  • Premature withdrawal: You can withdraw your FD before maturity, but you will be charged a penalty and may also earn a lower interest rate.

Types of Fixed Deposit (FD) Accounts Available

Fixed deposit accounts can be categorized into several types based on the benefits offered, the account holder’s age, and the purpose of the account. Below are some types of FD accounts:

Regular FD Account

The regular FD account is available for individuals under the age of 60. The interest rates for this account are lower compared to those offered to senior citizens. Any Indian resident individual can open this account.

FD Account for Senior Citizens

This account is exclusively for individuals aged 60 and above. Senior citizens receive higher interest rates and can opt for a monthly interest payout option, which can help cover their monthly expenses.

Corporate FD Account

Corporate firms have separate interest rates and deposit tenures with banks. They can deposit excess funds or profits into corporate FD accounts temporarily until they are utilized.

Tax-Saving FD Account

Risk-averse individuals can use tax-saving FD accounts, which have a minimum lock-in period of five years to save income tax. Deposits in these accounts qualify for tax deductions under section 80C of the Income Tax Act, 1961.

NRO FD Account

Non-Resident Ordinary (NRO) FD accounts can be opened by Overseas Citizens of India (OCI), Persons of Indian Origin (PIO), and Non-Resident Indians (NRIs). Income earned in INR can only be deposited in NRO FD accounts. These accounts can be jointly held with an Indian resident who falls under the specified categories of relatives.

NRE FD Account

Non-Resident External (NRE) FD accounts can be opened by two or more NRIs. They facilitate the conversion of foreign currency earned outside India into Indian currency. Both the principal and interest from these accounts are fully repatriable, and the interest income is exempt from tax under Section 10(4) of the Income Tax Act.

FCNR FD Account

Foreign Currency Non-Repatriable (FCNR) FD accounts can be opened by NRIs to deposit money earned overseas in India. Accepted currencies include US Dollars, Pounds Sterling, Euros, Japanese Yen, etc. These accounts allow retention of funds in the same currency while earning returns.

FD Account With Monthly Payout

This FD scheme pays out the interest accumulated on a monthly basis. The interest is not compounded, and you can choose to have it transferred to your savings account monthly for expenses.

FD Account With Maturity Payout

In this scheme, interest accrues and compounds over the deposit tenure, and you receive the principal plus interest upon maturity of the FD account.

How to Invest in Fixed Deposits?

You can open an FD through various channels:

Online Banking/Mobile banking

Most banks allow you to open FDs through their online banking platforms.

  1. Visit the official website/mobile banking app of the bank to start the fixed deposit opening process.
  2. Log in to your existing bank account or create a new account if needed.
  3. Navigate to the ‘Fixed Deposit’ option.
  4. Fill in all mandatory fields, such as tenure, amount, nominee details, and digital signatures.
  5. Upload all the required documents.
  6. Verify all information provided and submit the application.
  7. Make the payment through internet banking.
  8. Keep the receipt for future use.

Bank Branch (Offline Process)

To initiate the offline process for opening an FD account, adhere to the following steps:

  1. Visit the bank and obtain a fixed deposit opening form.
  2. Fill out the fixed deposit application form with precise details, specifying the amount and tenure.
  3. Submit the completed application form along with the required documents to the bank.
  4. Provide the chosen investment amount for the fixed deposit account, either in cash or by cheque.
  5. The bank will process your application and proceed to open your FD account.

How to Calculate Fixed Deposit Maturity Amount?

\( A = P \times \left(1 + \frac{r}{n}\right)^{nt} \)

Where:

  • A is the maturity amount (future value of the investment, including interest).
  • P is the principal amount (the initial amount you deposit).
  • r is the annual interest rate (decimal).
  • n is the number of times that interest is compounded per unit t (usually per year).
  • t is the time the money is invested for in years.

You can easily calculate it by using an FD calculator available on the internet, allowing you to determine the total interest you will earn at the end of the tenure.

Things to Consider Before Investing in FDs

  • Interest rates: Compare interest rates offered by different banks and NBFCs before choosing an FD.
  • Tenure: Choose a tenure that aligns with your financial goals.
  • Premature withdrawal penalty: Be aware of the penalty charged for premature withdrawals.
  • Tax implications: Understand the tax implications of investing in FDs.

FAQs about FD Interest Rates

  1. What are FD interest rates?

    FD interest rates are the returns you earn on a fixed deposit (FD) account. These rates are fixed for the tenure of the deposit, offering predictable returns.

  2. How are FD interest rates determined?

    Several factors influence FD interest rates, including:

    * Bank’s internal policies and risk appetite.
    * Deposit tenure (longer tenures typically offer higher rates).
    * Current market interest rates.
    * Competition from other banks and investment options.

  3. Where can I find current FD interest rates?

    You can compare FD interest rates offered by different banks on their websites, financial comparison websites, or mobile apps.

  4. Do different types of FDs offer different interest rates?

    Yes, interest rates can vary depending on the FD type. Senior citizen FDs often offer higher rates, while tax-saving FDs may have lower rates but offer tax benefits.

  5. Do interest rates change during the FD tenure?

    Typically, no. The interest rate is locked in at the time of opening the FD and remains fixed until maturity. However, some banks offer FDs with callable features, where they can revise the interest rate during the tenure under specific conditions.

  6. How are FD interest payments made?

    Payments can be made monthly, quarterly, annually, or at maturity, depending on your chosen option.

  7. How are FD interest rates calculated?

    Interest is usually calculated using the simple interest method, based on the principal amount, interest rate, and deposit tenure. Some banks offer compound interest options, where interest is earned on both the principal and accumulated interest.

  8. What happens if I withdraw my FD prematurely?

    Most banks charge a penalty for early withdrawals, reducing the interest earned.

  9. Can I negotiate FD interest rates?

    Negotiation might be possible for larger deposits or if you have a good relationship with the bank.

  10. Is there a minimum or maximum FD interest rate?

    No fixed minimum or maximum rates exist, but banks generally offer rates within a certain range based on market conditions.