Fixed deposit is a safe investment option that guarantees consistent interest rates, special interest rates for pensioners, various interest payment options and no market risks with income tax deductions. Before opening a new fixed deposit or renewing an existing one, it is important to compare the latest rates for fixed deposits among the leading banks in the country. Here are the latest fixed deposit rates for 2023.
Fixed deposit rates Top 10 banks in India under Rs.2 crore
Below are the latest interest rates offered by the best banks for a period of 7 days to 10 years from February 2023.
|Bank FD Names||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|State Bank of India FD||3.00% to 6.75%||3.50% to 7.25%|
|HDFC Bank FD||3.00% to 7.00%||3.50% to 7.75%|
|ICICI Bank FD||3.00% to 7.90%||3.50% to 7.50%|
|IDBI Bank FD||3.00% to 6.75%||3.50% to 7.50%|
|Kotak Mahindra Bank FD||2.75% to 7.10%||3.25% to 7.60%|
|RBL Bank FD||3.25% to 7.80%||3.75% to 8.30%|
|KVB Bank FD||4.00% to 7.25%||5.90% to 7.65%|
|Punjab National Bank FD||3.50% to 7.25%||4.00% to 7.75%|
|Canara Bank FD||3.25% to 7.00%||3.25% to 7.50%|
|Axis Bank FD||3.50% to 7.26%||3.50% to 8.01%|
|Bank of Baroda FD||3.00% to 7.05%||3.50% to 7.55%|
|IDFC First Bank FD||3.50% to 7.50%||4.00% to 8.00%|
FD rates offered by other popular banks in India under Rs.2 crore
Fixed deposit rates offered by other banks in India are listed below for deposits under Rs.2 crore, from February 2023. This is a term of office from 7 days to 10 years.
|Bank FD Names||For General Citizens (p.a.)||For Senior Citizens (p.a.)|
|Yes Bank FD||3.25% to 7.00%||3.75% to 7.75%|
|IndusInd Bank FD||3.50% to 7.25%||4.00% to 7.85%|
|UCO Bank FD||2.90% to 7.15%||3.15% to 7.25%|
|Central Bank of India FD||3.00% to 6.75%||3.50% to 7.25%|
|Indian Bank FD||2.80% to 6.50%||3.30% to 7.00%|
|Indian Overseas Bank FD||4.50% to 7.00%||5.00% to 7.50%|
|Bandhan Bank FD||3.00% to 8.00%||3.75% to 8.50%|
Types of fixed deposits
- Current Fixed Deposits
- Tax-Saving Fixed Deposits
- Fixed Deposits Of Seniors
- Fixed deposits NRI
- Cumulative / Non-Cumulative Fixed Deposits
- Fixed Deposits Flexi
Features of a fixed deposit account
- Safer than other investment vehicles.
- It allows you to earn interest for a certain period of time.
- Flexible duration up to 10 years.
- No limit on the maximum deposit.
- Additional rates for seniors.
Top 10 tax savers FD interest rates
FDs tax savers offer a maximum deduction of Rs.1.5 lakh according to Section 80C of the Income Tax Act, whereby the maximum allowable deposit is Rs.1.5 lakh. The locking period is 5 years. Seniors are offered an additional interest rate.
These are the interest rates from February 2023.
|Name of the Tax Saving FD||For General Citizens (p.a.)||For Senior Citizens (p.a.)|
|SBI Bank Tax Saving FD||6.25%||7.25%|
|IndusInd Bank Tax Saver Scheme||7.25%||8.00%|
|RBL Bank Tax Saving FD||7.00%||7.50%|
|HDFC Bank Tax Saving FD||7.00%||7.75%|
|Canara Bank Tax Saving FD||6.50%||7.00%|
|Axis Bank Tax Saving FD||7.00%||7.75%|
|Bank of Baroda Tax Saving FD||6.25%||6.90%|
|IDFC First Bank Tax Saving FD||7.00%||7.50%|
|Union Bank of India Tax Saving FD||6.70%||7.20%|
|PNB Tax Saving FD||6.50%||7.00%|
|Punjab and Sind Bank Tax Saving FD||6.25%||6.75%|
|IDBI Bank Tax Saving FD||6.25%||7.00%|
Fixed Deposits Of Seniors
Fixed deposits for the elderly have some features that distinguish them from fixed deposits for the general public, for example:
- The depositor should be 60 years old or older at the time of opening a fixed deposit account
- Depending on the bank, interest rates are higher by 0.25% to 0.50%
- Holding is between 7 days and 10 days
- Credit against FD can be used
- Penalties for early withdrawal are the same as for the general public
Punjab National Bank launches 666 days fixed deposit scheme for Christmas
On the occasion of Christmas, the official Twitter account of Punjab National Bank tweeted about its new and unique system of fixed deposits (PNB 666 day fixed deposit). The plan matures in 666 days, when the fixed deposit receives an interest of 8.10%. It is higher than the FD rates that the bank usually offers. Interest rates are higher for seniors. If you do not want to visit the bank in person, you can invest in this system using internet banking or the PNB One application.
Eligibility criteria for FD investments
The following entities are eligible to open an FD account in India:
- Indian resident
- Partner companies
- Individuals or joint investors
- Associations or clubs
Documents required to open an FD account
The documents required to open an FD account are listed below:
- Identity document: voter ID card, PAN card, Aadhaar card, driver’s license, photo ration card, senior citizen ID card, etc.
- Proof of address: utility bills, bank statement with a check, identification card or certificate issued by mail, etc.
How to open a fixed deposit
You can open FD in two ways: online and offline.
Online: if you want to open an FD account online, it would be easiest to do so at a bank where you already have an account. All you have to do is use a clean banking device, fill out an online form to open the FD and submit it. In such cases, KYC will not be required because your bank will already have the details. You can transfer funds through your account using the internet banking device.
Offline: visit the nearest branch of your bank and fill out the application form to open an FD account. Present it to the appropriate official with the required documents. Deposit the required amount and you will receive a confirmation from the FD.
Factors that affect FD interest rates
There are many factors that affect FD interest rates, some of which are listed below:
Deposit holding: the lower the holding, the lower the interest rate and the higher or medium range of the holding, the higher the interest rate.
Deposit amount: higher deposit amounts will bring you higher interest rates, especially bulk deposits in excess of Rs.1 crore
Depositor type: seniors typically receive a 0.25% to 0.50% additional interest rate on fixed deposits.
Fixed Deposit Interest Rate Calculator
The interest you can earn on the amount deposited depends on several factors, including the amount invested, Holdings, interest rate, frequency of interest calculation and taxation. You can calculate the return on your investment using the FD calculator. The whole process of calculating the amount is easy and hassle-free. All you need to do is enter the term of the deposit, choose the type of FD (reinvestment, quarterly or monthly payment), the amount of investment, the date of opening the account and the interest rate.
Fixed interest on deposits and income tax
The income you earn on your FD is called income from another source and is fully taxable.
Banks will not deduct TDS if your interest income on fixed deposits is less than Rs.40,000 a year.
At the beginning of the financial year, you must submit Form 15g and Form 15h to the bank. Banks will not deduct TDS after submitting the form.