Best FD Interest Rates In India

Fixed deposits or high-interest term deposits are offered by the banks in India. The most common form of term deposits tends to be fixed deposits. Other kinds of term deposits are Flexi fixed deposits, recurring deposits, etc.

In India, the interest on fixed deposits is usually paid every three months from the date the deposit is conducted. The interest is usually sent to the customers by cheques. Best FD interest rates vary from time to time and depend on a lot of external and internal scenarios. 

Fixed Deposit is one of the safest investment option in India in today's scenario. Fixed deposits guarantee special interest rates for senior citizens, constant and consistent interest rates, several payment methods, no external risks, and automatic tax deductions. If you are wondering what the best FD interest rates in India currently are, we have got you covered! Here is all that you need to know about fixed deposit rates in India. 

Best FD Rates in India in 2023

If you're wondering what the best FD interest rates in India this year are, keep reading to know all the details.

• Some of the Best of the interests that are being offered by Banks this year are Bajaj Finance LTD., ICICI Bank, SBI Bank, Axis Bank, IDFC Bank, Kotak Mahindra Bank, Canara Bank, Punjab national bank, Union Bank, and many more.
• NBFC offers the best FD rates of 6.5% of regular FD and 6.75% for senior citizens FD with a guarantee. Therefore, it seems to be offering the highest amount of FD rates that can be seen in today's scenario in India.
• The State Bank of India, however, seems to offer a high rate as well. The SBI is offering a guaranteed fixed deposit interest rate of 2.90% to 5.40% for general citizens and 3.40% to 6.30% for senior citizens.

The State Bank of India and the NBFC seem to be the highest paying agency right now in India compared to the other banks who are offering relatively low guaranteed FD rates to regular and senior citizens.
Muthoot capital offers an interest rate of 8% for regular citizens, which also is a good amount compared to the other banks and NBFCs. For a tenure of one year,  Muthoot capital is offering to pay a guaranteed percentage of it to the regular citizens, followed by the SBM bank, which is also offering around 7.25% interest rates for all their regular citizens for a tenure of one year to one year one month.

Best FD Interest Rates Offered by Other Popular Banks

The Best FD rates can be quite difficult for one to guess, considering how so many banks and NBFCs are offering a great guaranteed amount of interest rates in the current scenario in our country. The State Bank of India seems to be offering a guaranteed amount of 3% to 5.40% of the rates for general citizens and 6.20% for senior citizens. The ICICI Bank, on the other hand, offers a guaranteed rate of 2.50% to 5.50% to regular citizens and 3.00% to 6.30% if the rates are for senior citizens.

For instance, the SBM bank offers a guaranteed 7.25% FD rate to all regular citizens. Jana Bank seems to be offering a 6.75% interest rate to the regular citizens, and RBL Bank is offering a 6.5% of interest rate to the regular citizens. Although the tenure period might differ from one bank to the other according to their FD rate plans, the interest rates seem to be similar for all banks across the entire country.

Deciding what the best fixed deposit rates in India currently are can, therefore, be quite tricky. For instance, the Axis bank of India seems to be offering a guaranteed FD interest rate of 2.50% to 5.75% to the regular citizens and 3.50% to 6.75% interest rates to the senior citizens. 

While the Kotak bank is also offering a 50% interest of 2.50% to 5.30% FD interest to regular citizens and 3.00% to 5.80% FD rates to senior citizens of India, apart from that, IDFC first bank also seems to be offering a guaranteed interest rate ranging from 3% to 6% to general citizens and 2.75% to 6.50% interest rates to senior citizens.

On the other hand, PNB housing finance is also offering a decent rate of 5.90% to 6.70% interest rate to general citizens and 6.15% to 6.95% FD rates to senior citizens. If you're wondering what the best interest offering bank currently in India is, go through the percentages thoroughly and decide for yourself which bank seems to be offering the best fixed deposit interest rates as per your position.

Best Fixed Deposit Rates for senior citizens

• The best FD interest rates for senior citizens can vary from one bank to the other. The State Bank of India offers around 6.20% fixed and guaranteed FD interest rates to senior citizens. In comparison, the ICICI bank also provides a fixed FD interest rate of 6.30% to senior citizens. The Punjab National Bank offers around 5.75% to senior citizens. On the other hand, the IDFC bank and the Bank of Baroda seem to provide a fixed FD rate of 6.25%.
• The Bajaj finance LTT offers a fixed FD rate of 6.75% to senior citizens, which seems to be a great option for those who have an NBFC account in their name.
• On the other hand, the Bank of Baroda also offers a fixed deposit rate of 6.3% to all their senior citizen customers. In comparison, the Canara Bank, Yes Bank, the Kotak Mahindra Bank, Punjab national bank, and Union Bank seem to offer an average of 5.5% to 6.3% to all their senior citizen customers. Therefore, by looking at the statistics closely, banks that offer the best FD rates for senior citizens can be tracked.

Best FD Rates for 1 Year Tenure

As far as the one-year tenures are concerned, banks like ESAF Small Finance Bank, Kerala Transport Development Finance Corporation Limited, ICICI home finance, LIC housing finance Ltd, Shriram City Union finance are some of the major banks that offer a good amount of interest rate when the tenure is of one year.

The best fixed deposit interest rates, therefore, are offered by several banks in India in the current situation. For instance, The SBM bank seems to offer a fixed amount of 7.25% of interest rate to all its regular citizens for a tenure of one year. 

On the other hand, the Muthoot Capital Banks tend to offer a fixed interest rate of 8% to all the regular citizens when the tenure is one year as well. Indusind bank, on the other hand, has several plans to offer to the customers. 

Most of their plans come with a fixed interest rate of 6.5% for all the regular customers. The tenure for this bank can vary from one year to 5 years. 

Best FD Rates for 3 Years Tenure

The FD rate seems to vary immensely when the tenure period increases from one year to three or five years. Best Fixed deposit interest rates, therefore, cannot be perfectly guessed. However, a detailed analysis of all the leading banks of India can give you an overview of what you can expect in this regard.

Some of the major banks that provide the customers with a plan of three years to five years tenure are Jana bank, RBL Bank, Bajaj Finserv, DCB Bank, Indusind Bank, and Suryodaya small finance bank. These are some of the banks that offer the best FD interest rates as far as long tenure periods like three years or five years are concerned. 

Yes, Bank seems to offer a fixed tenure rate of 6.5% to all their regular citizens if the ten-year period is more than three years. Jana Bank offers 6.75% FD rates to all the regular citizens for a tenure period of three years. DCB bank, on the other hand, has several programs for their customers. They offer around 4% to 6% interest rate to all their regular customers when the tenure period ranges from three years to 10 years.

Best FD Interest Rates in Bank for 5 Year Tenure 

Not all banks seem to offer five-year tenure period interest plans for the citizens. However, there are a few banks that have several FD plans for both regular and senior citizens across the country. Banks like Yes Bank, Bajaj Finserv Bank, DCB Bank, Indusind Bank, Jana Bank, Suryoday Small Finance Bank, or some of the leading banks seem to offer the best-fixed deposit rates it comes to the tenure period of five years or more.

Yes Bank offers an interest rate of 6.5% to all the regular citizens when the tenure period ranges from five years to 10 years. They have several plans, and according to the tenure period, the interest rate is decided by the bank officials. Similarly, Bajaj Finserv Bank offers a 6.5% interest rate to regular citizens when the tenure period ranges from three to five years. Depending upon the tenure period, the interest rate is decided. The State Bank of India offers around 5.40% to 6.20% of interest rates to general and senior citizens depending upon the tenure period. 

These are some of the leading banks that offer the best FD interest rates in India when it comes to a longer tenure period ranging from three years to five years and sometimes even 10 years.

Best Fixed Deposit Interest Rate in Small Finance Banks

If you're wondering about some of the small finance banks that offer some of the highest fixed deposit interest rates for both their regular and senior citizens across the country, here is all you need to know.

Ujjivan Small Finance Bank seems to be leading the chart when it comes to small banks that offer a good amount of interest rates to the citizens. This bank offers a fixed deposit rate of 3.5% to 6.75% to regular citizens and somewhere around 4% to 7.30% interest rates to all senior citizens across the country. The interest rate varies on the type of citizen you are, and the tenure period you are looking for.

India Post office offers around 5.50% to 6.70% interest rate to all their existing regular and senior citizens for a tenure of seven days to five years. The interest rate is decided depending upon the tenure.

Along with these two leading small finance banks, Jana Small Finance Bank seems to have some exciting offers that they provide their customers with. They offer around 2.50% to 6.75% of bank FD rate of interest to their regular citizens. On the other hand, they offer about 3% to 7.25% FD rates to all the senior citizens depending on the tenure period of seven days to 10 years.

Best FD Rates in NBFCs

As far as the Non-Banking Financial Companies (NBFC) are concerned, several leading agencies seem to have excellent offers for all citizens across the country. For instance, SBM Bank offers a fixed interest rate ranging from 6.50% to 7.25%, depending on the tenure. The general tenure period that they offer ranges from somewhere between one year to three years.

Similarly, Utkarsh Small Finance Bank also offers a 6.75% FD rate to all the regular citizens for a tenure period of one year or more. Muthoot Capital offers a fixed rate of 8% interest to all the regular citizens for a tenure ranging from one year to two years. Apart from these leading NBFCs, Jana Bank, RBL Bank, Yes Bank, DCB Bank, Indusind Bank, and Bajaj Finserv Bank also have different interest rates depending upon their periods.

Post Office Fixed Deposit Interest Rates

The post office fixed deposit is also a convenient substitute for the fixed deposits that the banks and the NBFC usually provide. These are services that Indian Postal Services offer. By following these programs, you can earn a guaranteed return on the money that you deposit for a specific time. 

The highest fixed deposit interest rates that the post office usually pays vary depending upon the time period. They offer around a 5.5% FD rate to all the citizens for a tenure period of one year. For two years, they offer a 5.5% interest rate to all their citizens. For three years, they offer 5.5% to 6%, and for five years, they tend to offer around 6.7% interest rate to all the citizens.

How to Choose the Best FD Interest Rates in India?

There are several options to consider when you are wondering which plan to choose from all the available options in India in 2023. Most of the banks that offer these tend to have certain limitations, such as not allowing premature withdrawals. Although some banks allow early withdrawals, they charge a certain penalty fee which is not a convenient option.

However, bank fixed deposits are some of the based options out there that offer interest rates ranging from 5.50% to 7%, depending on the tenures. Despite certain shortcomings, banks tend to have a lot of security factors attached to the plans that make them more convenient than other plans. Your investments are entirely secured when you decide to deposit your money in a bank. However, no such security can be guaranteed under NBFCs.

How to Calculate Fixed Deposit Interest in 2023?

If you are wondering which bank or NBFC can provide you with the highest fixed deposit rates, consider analysing the possibilities, offers, and plans that various companies present. When you invest in a fixed deposit, the interest is calculated as per the amount that you deposited on the company/ bank/ post office. 

The interest keeps growing over time. Therefore, the interest plans keep your savings growing. Therefore, before investing in any fixed deposit, your first and foremost responsibility should be to consider the possible rate of interest for the amount you are depositing and how the tenure period can affect it.

In most cases, senior citizens tend to get more interest rates from banks and NBC apps. In comparison, the regular citizens tend to get a lower amount of interest rate offered by banks.  

Therefore, calculate the percentage that is being offered by the bank as the interest FD rate as per your depositing amount and compare it with the other contemporary companies and then go for the best deal that would suit your need. You can use FD Calculator to find the interest on your fixed deposit.

FAQs

1. Will my money be safe with banks and in BCS after investing?

Ans: Banks and government-funded post offices in India seem to have a secure and safe system when it comes to depositing and providing reasonable interest rates. However, many NBC apps have the reputation of not being as safe as banks and post offices.

2. Which bank offers the highest interest rate for a tentative tenure period of up to 10 years?

Ans: Several banks in India offer considerably reasonable interest rates to the citizens for up to 10 years. For instance, the State bank of India Provides around 6.25% to 6.75% interest rates for a 10 years tenure period. HDFC Bank and ICICI Bank also provide around a 7% interest rate for a 10 years tenure period. Other banks like Canara Bank, Bank of Baroda, Bank of India, and Bandhan Bank also plan to provide around 6.5% to 7.5% of interest rates to all their citizens when the tenure period ranges from eight years to 10 years.

3. Is fixed deposit interest always paid monthly to all the citizens?

Ans: The interest percentage depends on the amount of money you deposited. The interest on the fixed deposit is paid either quarterly or monthly as per your choice. For instance, if you deposit around three lakhs in a year, you can earn around 6000 INR quarterly, or you can choose to earn 2000 INR of interest every month.