Are you looking to park your money in a safe financial instrument that isn’t affected by market volatility and gives better returns than a regular savings account? If you’re a risk-averse investor seeking stable returns on your investments, a fixed deposit is perfect for you.
It is a low-cost investment with guaranteed returns, flexible tenures, and tax-saving benefits. But with multiple banks offering different FD options, selecting one with the highest interest rates can be challenging. After all, even a slight increase in the fixed deposit interest rate can significantly increase your gains over the tenure of the deposit.
To make it easier, we’ve created a list of the highest FD interest rates offered by top Indian banks.
Banks Offering the Best FD Interest Rates in India
We understand that choosing the right bank for your fixed deposit investment is crucial, and we’re here to help you navigate the options. So, let’s jump into the list of top banks offering the best fixed deposit interest rates in India.
| Name of the Bank | Interest Rate for General Citizens (p.a.) | Interest Rate for Senior Citizens (p.a.) |
| State Bank of India | 3.00% to 7.10% | 3.50% to 7.60% |
| IndusInd Bank | 3.50% to 7.25% | 4.00% to 7.75% |
| HDFC Bank | 3.00% to 7.10% | 3.50% to 7.75% |
| ICICI Bank | 3.00% to 7.10% | 3.50% to 7.60% |
| IDBI Bank | 3.00% to 6.75% | 3.50% to 7.50% |
| Kotak Mahindra Bank | 2.75% to 7.20% | 3.25% to 7.70% |
| RBL Bank | 3.25% to 7.80% | 3.75% to 8.30% |
| KVB Bank | 4.00% to 7.50% | 5.90% to 8.00% |
| Punjab National Bank | 3.50% to 7.25% | 4.00% to 7.75% |
| Canara Bank | 3.25% to 7.00% | 3.25% to 7.50% |
| Axis Bank | 3.50% to 7.26% | 3.50% to 8.01% |
| Bank of Baroda | 3.00% to 7.05% | 3.50% to 7.55% |
| IDFC First Bank | 3.50% to 7.75% | 4.00% to 8.25% |
| Yes Bank | 3.25% to 7.50% | 3.75% to 8.00% |
| UCO Bank | 2.90% to 7.20% | 3.15% to 7.70% |
| Indian Overseas Bank | 4.50% to 7.00% | 5.00% to 7.50% |
Note: These are the FD interest rates provided by banks for tenures ranging from 7 days to 10 years and deposits below Rs.2 crore.
While the fixed deposit interest rate is a crucial factor to consider when selecting a bank, it must not be the only one. There are several other factors that you must consider to make an informed decision. Let’s find out what they are.
Factors to Consider Before Opening a Fixed Deposit
1. Tenure
The tenure of a fixed deposit typically ranges from 7 days to 10 years. Your FD interest rate will also depend on this tenure. So select a duration that aligns with your financial goals and liquidity requirements.
2. Minimum Deposit Amount
Many banks have a minimum deposit requirement to open a fixed deposit. However, this amount varies from bank to bank and depends on the type of FD account you select. So, if you want to invest a smaller amount, look for a bank with a lower minimum deposit requirement.
3. Penalty on Premature Withdrawal
Some banks might charge a penalty if you withdraw your fixed deposit before the maturity date. Therefore, it’s essential to read the terms and conditions to understand the penalty or other charges before investing. Moreover, you must also consider your liquidity needs and choose a bank that meets your requirements.
To Sum Up
Fixed deposits are an excellent low-risk investment option to earn a steady income on your savings. But besides looking for the highest FD interest rates, make sure to consider other important factors too.
Leading banks like IndusInd Bank offer not only the best fixed deposit interest rates in the market but also flexible tenures and a hassle-free account opening process. So visit their website to open a fixed deposit today and let your savings earn for you.
Also read: How to Get The Personal Loan at The Lowest Interest Rate
