Hi friends today we will read about Best Bank New Fixed Deposit Rates 2023, Best Fixed Deposit Bank Rates, FD Rates, Which bank FD rate is high 2023, Fixed Deposit Rates in India, Which bank is best for fixed deposit in 2023,.
Fixed Deposit is considered to be a major means of safe investment offered by banks and non-banking financial companies ie NBFCs. Investors get higher returns through FD as compared to savings account. A bumper return can be earned in the form of interest by depositing a lump sum amount for a fixed period of time in a fixed deposit. Let us tell you here that according to the fixed rules of FD, the amount deposited before maturity cannot be withdrawn. However, the deposited amount can be withdrawn earlier by paying some penalty.
Let us tell you that at present, Jana Small Finance Bank is offering hefty interest on fixed deposits to its customers. Jan Small Finance Bank has recently changed the interest rates available on fixed deposits. The new interest rates of FD of Jana Small Finance Bank have been effective from 7 May 2021. Experts say that investors get the option to open FD for a period of 7 days to 10 years. Experts say that investors get fixed returns from investing in FDs, but it is much less than mutual funds.
This article has everything you need to know about the best fixed deposit schemes available for Indian citizens in the year 2021.
Commercial Bank Data – Updates
| Bank | FD Interest Rate | Duration | |
| ordinary citizens | senior citizen | ||
| SBM | 7.70% | 8.30% | 2 years to 3 years |
| Indusind | 7.00% | 7.50% | 1 year to 3 years |
| DCB | 6.95% | 7.45% | 36 months to 120 months |
| Yes | 6.75% | 7.50% | 3 years to 10 years |
| RBL | 6.75% | 7.25% | 36 months to 36 months 1 day |
| IDFC First Bank | 6.00% | 6.50% | 500 days |
Small Finance bank
| Interest rates offered by Small Finance | |||
| Bank | ordinary citizens | senior citizen | period |
| Suryoday Small Finance Bank | 7.50% | 8.00% | 5 year |
| North East Small Finance Bank | 7.50% | 8.00% | 730 days to 1095 days |
| Jana Small Finance Bank | 7.25% | 7.75% | >3 Years – <5 Years |
| Utkarsh Small Finance Bank | 7.00% | 7.50% | 700 days |
| Aquitas Small Finance Bank | 7.00% | 7.50% | 2 years 1 day to 3 years |
| AU Small Finance Bank | 6.75% | 7.25% | 24 months 1 day to 36 months and 60 months 1 day to 120 months |
| Ujjivan Small Finance Bank | 6.50% | 7.00% | 1 year – 2 years |
| Fincare Small Finance Bank | 6.50% | 7.00% | 36 months 1 day to 59 months |
Company / Corporate FD Interest Rates
| Company | Rate of Interest (% Years) | Duration |
| Muthoot Capital FD | 7.75% – 8.00% | 15 years |
| Shriram Transport Finance FD | 7.25% – 8.09% | 12 – 60 months |
| Kerala Transport Development Finance Corporation (KTDFC) FD | 5.75% – 6.00% | 15 years |
| Sundaram Finance Company FD | 5.72% – 6.22% | 12 to 36 months |
| Mahindra Finance FD Scheme (MMFSL) | 5.70% – 6.45% | 12 to 60 months |
| Bajaj Finserv FD | 5.94% – 6.60% | 12 to 60 months |
| PNB Housing FD | 5.90% – 6.70% | 12 to 120 months |
| HDFC Ltd. FD | 5.65% – 6.05% | 12 to 84 months |
| LIC Housing Finance FD | 5.65% – 5.75% | 15 years |
| ICICI Home Finance FD | 5.30% – 6.10% | 12 to 120 months |
| Hawkins Cookers Limited FD* | 10% – 10.50% | 12 to 36 months |
| Housing and Urban Development Corporation (HUDCO) FD* | 7.00% – 7.25% | 12 to 60 months |
FD interest rates across various entities
FDs, ie Fixed Deposits, are considered a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens, no market risk, various interest payment options and income tax benefits. But before choosing the entity to invest in, it is important to compare several factors, such as default risk, tenure offered, prepayment penalty and many more. Another important factor to inspect before investing in an FD is the latest FD rates amongst leading institutions like banks, corporates and post offices across the country.
In this article we compare the latest interest rates offered by these institutions. However, despite one important feature one must remember, it should not be the only decision-making factor. To know about the latest FD rates, let’s move on with the article.
Comparison of FD interest rates among banks, financial institutions and post offices
The comparison will be based on tenure and rates for general public and senior citizens.
| Bank Name | General Public (per year) | Senior Citizen (per year) | Duration |
| Post Office | 5.50% to 6.70% | 5.50% to 6.70% | 1 year to 5 years |
| State Bank of India | 2.90% to 5.40% | 3.40% to 6.20% | 7 days to 10 years |
| ICICI Bank | 2.50% to 5.50% | 3.00% to 6.30% | 7 days to 10 years |
| HDFC Bank | 2.50% to 5.50% | 3.00% to 6.25% | 7 days to 10 years |
| Axis Bank | 2.50% to 5.50% | 2.50% to 6.00% | 7 days to 10 years |
| PNB Bank | 3.00% to 5.25% | 3.50% to 5.75% | 7 days to 10 years |
| Canara Bank | 2.95% to 5.50% | 2.95% to 6.00% | 7 days to 10 years |
| IDFC Bank | 2.75% to 5.75% | 3.25% to 6.25% | 7 days to 10 years |
| Yes Bank | 3.50% to 6.75% | 4.00% to 7.50% | 7 days to 10 years |
| Indusland Bank | 3.25% to 6.75% | 3.75% to 7.25% | 7 days to 5 years and above |
| Union Bank | 3.00% to 5.40% | 3.50% to 5.90% | 7 days to 10 years |
| SBM Bank | 3.50% to 6.50% | 4.00% to 7.00% | 7 days to 10 years |
| Bandhan Bank | 3.00% to 5.75% | 3.75% to 6.50% | 7 days to 10 years |
| BOI Bank | 3.25% to 5.30% | 3.75% to 5.80% | 7 days to 10 years |
Comparison of FD Rates among NBFCs (Non-Banking Financial Institutions)
Some NBFCs offer competitive and decent interest rates on their FD accounts. Here are some of the highest interest rates for a period of 1 year to 5 years with effect from December 2020.
| Bank | General Public (per year) | Senior Citizen (per year) | Duration |
| LIC housing finance | 5.00% to 5.60% | 5.75% to 5.85% | 12 to 60 months |
| PNB housing finance | 5.90% to 6.70% | 6.15% to 6.85% | 12 to 120 months |
| ICICI Home finance | 5.30% to 6.10% | 5.75% to 6.35% | 12 to 120 months |
| Mahindra Finance | 5.70% to 6.45% | 5.85% to 6.70% | 15 to 60 months |
| Bajaj Finance | 5.94% to 6.60% | 6.17% to 6.85% | 12 to 60 months |
| Shriram City Union Finance | 7.50% to 8.40% | 7.90% to 8.80% | 12 to 60 months |
Tax Liability on FD
Income earned from fixed deposits is fully taxable under the head Income from other sources. However, banks do not deduct any TDS (Tax Deductible at Source) if a person takes interest less than Rs 40,000 in a year from FD. Form 15G and Form 15H have to be submitted to the bank at the beginning of the financial year. Once the form is submitted, banks do not deduct TDS.
Tax Saving FD
Tax Saving Fixed Deposit is a unique type of scheme under which one can avail tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. Partial or premature withdrawal options are not provided in this plan and loan facility is also not available.
Comparison of Tax Saver FD Rates Between Different Institutions
The maximum deposit amount here is Rs 1,50,000. An additional interest rate of 0.50% is given to senior citizens.
| unit name | General Public (per year) | Senior Citizen (per year) | tenure |
| SBI Bank Tax Saving FD | 5.30% | 5.80% | Lock-in for 5 years |
| ICICI Bank Tax Saving FD | 5.35% | 5.85% | Lock-in for 5 years |
| Axis Bank Tax Saving FD | 5.75% | 6.25% | Lock-in for 5 years |
| HDFC Bank Tax Saving FD | 5.50% | 6.25% | Lock-in for 5 years |
| Canara Bank Tax Saving FD | 5.50% | 6.00% | Lock-in for 5 years |
| PNB Tax Saving FD | 5.30% | 6.05% | Lock-in for 5 years |
| IDBI Bank Tax Saving FD | 5.30% | 5.90% | Lock-in for 5 years |
| Corporation Bank Tax Saving FD | 5.45% | 5.95% | Lock-in for 5 years |
Company fixed deposit
Deposits placed with companies for a specified period at a specified interest rate are called company or corporate FDs. Funds raised in these companies are governed by the Companies Act 2013 u/s 58A. These deposits are unsecured, ie, if the company defaults, the depositor will not be able to recover the capital by selling the documents, hence making it a risky option.
Here is a brief comparison table between various corporates.
| unit name | interest rate (normal) | tenure |
| Bajaj Finserv FD | 5.94% -6.60% | 1 to 5 years |
| Mahindra Finance | 5.70% -6.45% | 12 months to 5 years |
| LIC Housing Finance FD | 5.50% -5.60% | 1 to 5 years |
| HDFC Limited FD | 5.45% -6.05% | 1 to 7 years |
| PNB Housing FD | 5.90% -6.70% | 1 to 10 years |
| Shriram City Union Finance Ltd. | 7.25% -8.40% | 12 – 60 months |
| ICICI Home Finance FD | 5.30% -6.10% | 1 to 10 years |
| Sundaram Finance Company Fd. | 5.72% – 6.25% | 12 to 36 months |
| Hawkins Cookers Limited FD* | 8.50% – 9% | 12 to 36 months |
| Housing and Urban Development Corporation (HUDCO) FD* | 6.80% -7.50% | 12 to 60 months |
Note – Fixed Deposit rates are subject to change without prior notice
As can be seen, presently small finance banks are offering higher interest rates than commercial banks. While some customers may be more comfortable with commercial banks than small finance banks. They should note that like commercial banks, depositors in small finance banks are also covered under the Depositor Insurance Program of the Deposit Insurance and Credit Guarantee Corporation (DICGC). This means banks are covered by insurance up to a maximum of Rs.1 lakh, including fixed, savings, current and recurring deposits, per depositor per bank. Customers are covered for the same amount with both Small Finance Bank and Commercial Bank; Hence, the risk of investing in fixed deposits remains the same for both.
Highest Bank FD Rates from Top Banks
| Maximum interest rates (per annum) | ||||||
| Bank | 1 year | 3 years | 5 year | |||
| ordinary citizens | senior citizen | ordinary citizens | senior citizen | ordinary citizens | senior citizen | |
| SBM Bank | 6.50% | 7.00% | 7.70% | 8.30% | 6.50% | 7.00% |
| indusind bank | 6.50% | 7.00% | 6.50% | 7.00% | 6.50% | 7.00% |
| DCB Bank | 6.50% | 7.00% | 6.95% | 7.45% | 6.95% | 7.45% |
| RBL Bank | 6.50% | 7.00% | 6.75% | 7.25% | 6.40% | 6.90% |
| Yes Bank | 6.50% | 7.00% | 6.75% | 7.50% | 6.75% | 7.50% |
| IDFC First Bank | 5.75% | 6.25% | 5.75% | 6.25% | 5.75% | 6.25% |
| Bandhan Bank | 5.75% | 6.50% | 5.65% | 6.40% | 5.50% | 6.00% |
| standard Chartered Bank | 5.40% | 5.90%* | 5.50% | 6.00%* | 5.50% | 6.00%* |
| Canara Bank | 5.25% | 5.75% | 5.50% | 6.00% | 5.50% | 6.00% |
| PNB | 5.20% | 5.70% | 5.20% | 5.70% | 5.30% | 5.80% |
| Axis Bank | 5.15% | 5.80% | 5.40% | 5.90% | 5.50% | 6.00% |
| federal bank | 5.10% | 5.60% | 5.35% | 5.85% | 5.50% | 6.00% |
| ICICI Bank | 4.90% | 5.40% | 5.15% | 5.65% | 5.35% | 5.85% |
| HDFC Bank | 4.90% | 5.40% | 5.15% | 5.65% | 5.30% | 5.80% |
| SBI | 4.90% | 5.40% | 5.30% | 5.80% | 5.40% | 6.20% |
| Bank Of Baroda | 4.90% | 5.40% | 5.10% | 5.60% | 5.25% | 5.75% |
| Kotak Mahindra Bank | 4.50% | 5.00% | 4.75% | 5.25% | 4.50% | 5.00% |
| DBS | 4.05% | 4.05% | 5.50% | 5.50% | 5.50% | 5.50% |
Maximum FD Interest Rates of Small Finance Banks
| Bank | 1 year | 3 years | 5 year | |||
| ordinary citizens | senior citizen | ordinary citizens | senior citizen | ordinary citizens | senior citizen | |
| Suryoday Small Finance Bank | 6.75% | 7.25% | 7.15% | 7.65% | 7.50% | 8.00% |
| Utkarsh Small Finance Bank | 6.75% | 7.25% | 6.75% | 7.25% | 6.75% | 7.25% |
| Equitus Small Finance Bank | 6.75% | 7.25% | 7.00% | 7.50% | 7.25% | 7.75% |
| Jana Small Finance Bank | 6.60% | 7.10% | 7.00% | 7.50% | 6.75% | 7.25% |
| Ujjivan Small Finance Bank | 6.50% | 7.00% | 6.05% | 6.55% | 5.80% | 6.30% |
| Fincare Small Finance Bank | 6.00% | 6.50% | 6.30% | 6.80% | 6.00% | 6.50% |
How to choose the best Fixed Deposit Scheme?
Following are some of the important aspects that every fixed deposit investor should consider to maximize returns while investing:
1. Fixed Deposit Rates: The rate of interest for a specific tenure is of primary importance to the customers. Many banks offer higher FD interest rates for different tenure options. To choose the best FD plan available (higher FD interest rate and for how long you want to invest), you should first keep your financial goals in mind.
Once you have chosen your target, you should look for the bank that is offering you a good interest rate for the same amount of time you want to invest the money.
2. Duration: As given above, the time period for which you can deposit your money is an important aspect. Banks offer fixed deposits for tenors ranging from 7 days to 10 years. You should always invest in a fixed deposit amount and choose the tenure based on your financial goals.
Another thing that you should consider while choosing the tenure is the interest rate regime. If you think interest rate will increase in future, then you should invest for shorter FD tenure and, in case of falling interest rate regime (i.e. interest rates will decrease in future), you should invest for longer term.
3. Reliability: There are many banks that offer higher FD interest rates but may indicate some risk. It is always advisable to make deposits with scheduled banks and NBFCs which are certified by ICRA, CRISIL, etc.
Also, if you want to invest in corporate fixed deposits, you should consider company funds based on the credit rating on the deposits provided. Deposits with a higher credit rating (for example: FAAA, FAA) of the company are considered safe. These ratings indicate the safety of the deposit amount (principal) and timely payment of interest.
4.FD Calculator:- Use a fixed deposit calculator to compare the maturity amount on investment and FD rates by different banks. FD Calculator is an online tool that uses the deposit amount, tenor (years/days/months) and its associated fixed deposit rate etc. to calculate the maturity amount of the customers. In this way, clients can plan their investments well as they have an anticipated return/profit.
5. Pay-out: The pay-out option provided by your bank also plays an important role while choosing the best fixed deposit plan. Banks offer 2 types of fixed deposits (cumulative and non-cumulative fixed deposits) in India.
Under the cumulative FD scheme, interest will not be paid to you quarterly, half yearly or annually. FD interest under this scheme will be credited every quarter, half yearly or yearly and will be added to your principal amount, which will be paid at the end of the tenure.
Under the non-cumulative FD scheme, interest will be paid to you every quarter, half yearly or yearly depending on the option paid every month. This FD scheme is best suited for senior citizens, widows who want a regular income. Regular investors can opt for cumulative FDs for compounding interest rates.
In which post office or bank is getting the highest interest on FD, know here
In this era, if you are looking for a safe investment destination, then your search is over. Nothing can be better than a Fixed Deposit (FD) for a safe investment of your money. Let us tell you that through Fixed Deposit (FD), along with the safety of investors’ money, they also get excellent returns (FD Returns). At present, some banks in the public sector and private sector are offering the best interest. Profits can be earned in the form of interest by depositing a lump sum amount in a fixed deposit for a fixed period. As per the fixed rules of FD, the amount deposited before maturity cannot be withdrawn. However, some can withdraw the money even earlier by paying a fine.
One can invest in FDs in post offices, banks and non-banking financial institutions in the country. Now in such a situation, the question arises that where to invest in these from where you can get good returns. Experts say that at present, investing in FD in Bajaj Finance can prove to be a good way. Actually, it is getting more returns than other places here. Apart from this, other facilities are also available. In such a situation, if you want to invest for a long period, then investing in it can prove beneficial for you.
Experts say that the interest available on FDs of post offices and banks is less as compared to Bajaj Finance. According to the information, at present, 5.65 to 6.60 percent interest is being given on FDs of Bajaj Finance from 1 year to 5 years. At the same time, 5.90 percent to 6.75 percent interest is being offered to senior citizens. On the other hand, FDs of banks with a tenure of 7 days to 10 years are getting 5.30 to 6.50 percent interest and senior citizens are getting 5.80 to 6.50 percent interest on FDs of this period.
Read this article also :
- Low Risk High Return Investment
- What is Difference Between Recurring Deposit and SIP
- NPS Best Retirement Plan
- What is Health Insurance Plans
- What is Life Insurance
Disclaimer: Investors must consult their financial advisor before investing. This article provides fixed deposit interest rate data based on information from banks’ websites and other sources. Please go ahead with the investment process only after your own investigation by the investor. Taking the news of fastread as the basis, the profit and loss on investing will not have anything to do with Fastread. Investors take investment decisions at their own discretion !
Note: This information changes from time to time, so please invest with the right information – this information is for education only! This information has been taken from different websites online, Fastread does not take any responsibility for it.