Fixed Deposit Interest Rates in India

Fixed Deposit Rates in India: Fixed deposits are a high-interest -yielding Term deposit which is offered by banks in India. The fixed deposit (FD) is a financial instrument which is provided by banks to provide investors with a higher rate of interest than a regular savings account, until the given maturity date. They are considered to be very safe investments. The main criteria for fixed deposit is the money cannot be withdrawn from the FD as compared to a recurring deposit or a demand deposit before maturity. It may or may not require the creation of a separate account for fixed deposits. These Fixed Deposits are also known as the Term Deposits.

The FD is often used by individuals, businessmen and financial institutions around the world as a means of storing their liquid funds for a fixed period of time for future use. Some of the banks may offer additional services to FD holders such as loans against FD certificates at the competitive interest rates. These investments are much safer as they are covered by the Deposit Insurance and Credit Guarantee Corporation as DICGC guarantees amount up to 1,00,000 per depositor per bank. They also offer income tax and wealth tax benefits.

The FDs offer higher rates of interest than saving accounts. It is very important to note that banks may offer lesser interest rates under uncertain economic conditions. The interest rate may vary between 4 and 11 percent. The tenure of an FD may vary from 7, 15 or 45 days to 1.5 years. It can also be as high as 10 years. The longest permissible term for a FD is 10 years. The longer the term of deposit, higher is the rate of interest. 

Best Fixed Deposit Rates in India:

Interest Rate for FD of Less than 1 Year:


Interest Rate for FD of Less than 1 Year

Interest Rate for Fixed Deposit of 1–2 Years:


Interest Rate for Fixed Deposit of 1–2 Years
Interest Rate for Fixed Deposit of 1–2 Years

Interest Rate for Fixed Deposit of 2–5 Years:


Interest Rate for Fixed Deposit of 2–5 Years

Interest Rate for FD of More than 5 Years


Interest Rate for FD of More than 5 Years

Fixed Deposits for Top Banks:

Lakshmi Vilas Bank:

It is a leading private bank which offers an interest rate of 8.80% p.a for FDs over 1 year but less than 2 years. The interest rate for Senior citizens will be 0.5% p.a more than other FD holders.

IndusInd Bank:

IndusInd Bank is a leading private bank and it offers an interest rate of 8.65% p.a for fixed deposits greater than 1 year but less than 1 year 2 months. The interest rate for Senior citizens will be 0.5% p.a more.

Jammu & Kashmir Bank:

It offers an interest rate of 8.75% interest p.a for fixed deposits greater than 1 year but less than 3 years. For senior citizens, an additional 0.50% p.a is applicable.

Canara Bank:

It is a Public sector Canara Bank which offers 8.60% interest for fixed deposits for one year. The Senior citizens can earn 0.5% p.a interest extra.

UCO Bank: 

It is also a public sector Bank which offers an interest rate of 8.5% for FDs for one year. Senior citizens can earn get 9.0% interest rate on their FDs.

The interest rates may change without prior notice, depositor shall ascertain the rates on the value date of Fixed deposit.
Fixed Deposit Interest Rates in India Fixed Deposit Interest Rates in India Reviewed by amara sangati for Rating: 5