Fixed deposits guarantee capital preservation, in contrast to volatile market-linked investments. This feature makes it attractive for senior citizens and individuals who are risk averse. Upon the maturity of the FD, you will be paid a set interest rate on your investment
An FD allows you to invest a set amount of money at a set interest rate for a predetermined amount of time. The terms of each financial institution might affect a fixed deposit's interest rate. Fixed deposits with terms ranging from one week to ten years are available for selection
Also read: FD interest rates of 8-9% to continue for a longer period as RBI holds repo rate; how to invest in fixed deposits
Also read: FD rates up to 9.5%: These 8 banks offer over 9% interest rate on fixed deposits for senior citizens
Here are top banks' fixed deposit interest rates for tenures ranging from 1 – 3 years.
| Bank Name | Highest interest rate (%) | Highest interest rate tenure | 1-3 years |
| Axis Bank | 7.20 | 17 months to less than 18 months | 6.70% to 7.20% |
| Bandhan Bank | 7.85 | 500 days | 7.45% -7.85% |
| DCB Bank | 8.00 | 25 months to 26 months | 7.15% to 8% |
| Federal Bank | 7.50 | 500 days | 6.80%- 7.50% |
| HDFC Bank | 7.25 | 18 months to less than 21 months | 6.60%-7.25% |
| ICICI Bank | 7.20 | 15 months to 2 years | |
| IDFC First Bank | 8.00 | 500 days | 6.50%- 8% |
| IndusInd Bank | 7.65 | 1 year to 2 years | 7% to 7.65% |
| Kotak Mahindra Bank | 7.40 | 390 days to less than 23 months | 6.50% to 7.40% |
| RBL Bank | 8.10 | 18 months to 2 years | 7.50% to 8.10% |
| Bank of India | 7.25 | 2 years | 6.8% to 7.25% |
| Canara Bank | 7.25 | 444 days | 6.85% to 7.25% |
| Indian Bank | 7.25 | 400 days - IND SUPER | 6.10% to 7.25% |
| Punjab National Bank | 7.25 | 400 days | 6.75% to 7.25% |
| Punjab & Sind Bank | 7.40 | 444 days | 6.20% to 7.25% |
| State Bank of India | 7.10 | 400 days - Amrit Kalash | 6.80% to 7% |
| Union Bank of India | 7.25 | 399 days | 6.75% to 7.25% |
Source: Bank websites; interest rates as on April, 4, 2024.
Maximising returns: FD Laddering
Using the FD laddering strategy, you split your total investment amount among many FDs with different maturities. Rather than investing all of your funds in a single FD, you can create a ladder of FDs with different maturities.
According to the ICICI Bank, “A Fixed Deposit Laddering Strategy is an investment technique that involves dividing a lump sum of money into multiple FDs, each with varying maturities. Instead of investing the entire amount in a single deposit, investors allocate it across several deposits with staggered maturity periods. The primary objective of this approach is to strike a balance between earning steady returns and maintaining access to funds at regular intervals.”
How are fixed deposits taxed?
The interest income you earn from an FD is fully taxable. The interest earnings form a part of your total tax liability. Due to the fact that interest received on FD is regarded as "income from other sources," Tax Deducted at Source, or TDS, is applied. The TDS is deducted at the exact moment your bank credits your account with interest revenue.
This is the rate of tax deducted at source (TDS) on fixed deposit interest that exceeds Rs. 40,000 in a fiscal year. For elderly individuals (60 years or over), the TDS threshold is Rs. 50,000.
Tax Deducted at Source (TDS) is a system implemented by the Income Tax Department to collect taxes during certain transactions.
FAQs
Unity Small Finance Bank offers interest rates of up to 9% per annum to its general customers and up to 9.5% per annum to senior citizens. These rates are applicable on tenures ranging from 7 days to 10 years. Unity Small Finance Bank is a scheduled commercial bank, recognised by the Reserve Bank of India.
Who has the highest 3 year FD interest rates? ›
Highest Fixed Deposit Interest Rates for 3 Years 2024
| FD Scheme | Interest Rate | Senior Citizen Rates |
|---|
| Punjab National Bank FD | 7 % | 7.5 % |
| Canara Bank FD | 6.83 % | 7.33 % |
| South Indian Bank FD | 6.7 % | 7.2 % |
| Indian Overseas Bank FD | 6.5 % | 7 % |
16 more rowsTop 20 Scheduled Banks offering Best FD Rates
| Banks | Highest FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
|---|
| DCB Bank | 8.05 | 0.50 |
| RBL Bank | 8.00 | 0.50 |
| AU Small Finance Bank | 8.00 | 0.50 |
| Induslnd Bank | 7.99 | 0.26-0.50 |
16 more rowsQ3. Which bank gives the highest interest rate on FD? As of 2024, Canara Bank offers the highest interest rate of 7.25% for 444 days.
Where can I get 9% interest rate? ›
Unity Small Finance Bank is offering a 9% interest rate for FDs maturing in 1001 days. Suryoday Small Finance Bank is offering an interest rate of 8.65% for FDs maturing in two years and two days. Ujjivan Small Finance Bank is offering an interest rate of 8.5% for FDs maturing in 15 months.
Which bank pays 7% interest? ›
As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
Which bank gives the highest interest rate on FD in 2024? ›
The highest interest rate of 9.50% is offered for tenure 1001 Days. The rates are effective from May 1, 2024. 1.
What is the maximum FD rate for senior citizens? ›
The highest FD rates are offered for a tenure of 42 months, which is up to 8.85% p.a. for senior citizens and up to 8.60% p.a. for customers below 60 years of age.
What is AAA rated FD? ›
As per India Ratings, AAA rating indicates highest degree of safety with lowest credit risk for the depositor.
What bank is giving 8% interest? ›
Top-pick regular savings
| Provider | Rate (AER) | Monthly amount |
|---|
| Saffron BS | 8% fixed | £0 to £50 |
| First Direct | 7% fixed | £25 to £300 |
| Co-operative Bank | 7% variable | £0 to £250 |
| Nationwide | 6.5% variable | £0 to £200 |
8 more rowsDec 5, 2023
IDFC FIRST Bank offers interest rate up to 7% on balances more than Rs 10lac to less than Rs 5 crore. The new rates are effective from July 1, 2023.
What is a senior citizen fixed deposit? ›
Senior citizen fixed deposit (FDs) are term deposit plans with exceptional interest rates available to individuals over the age of 60. Apart from the additional 0.40% p.a. rate of interest, these fixed deposit accounts offer a wide range of benefits to older residents.
Which bank is best for FD for 5 years? ›
Bank of Baroda (BOB): The state lender offers 6.50 percent on 5-year fixed deposit while the one-year FD offers 6.85 percent per annum. These rates came into effect on Jan 15, 2024. Kotak Mahindra Bank: This bank offers 6.20 percent on its five-year fixed deposit whereas the one-year FD offers 7.10 percent.
Which bank is best for fixed deposit 2024? ›
Best Fixed Deposit Rates in Singapore (June 2024)
- Best 12-month fixed deposit rates in June 2024 is 3.30% by Maybank.
- Best 6-month fixed deposit rates in June 2024 is 3.35% by SBI ($50,000 required).
- Best 3-month fixed deposit rates in June 2024 is 3.50% by Bank of China (min deposit of $500 only) or 3.40% by ICBC.
Top Banks for FDs in India
| Sr No | List Of Banks | Score |
|---|
| 1. | State Bank of India | AAA |
| 2. | HDFC Bank | AAA |
| 3. | Bank of Baroda | AAA |
| 4, | ICICI Bank | AAA |
12 more rowsA credit card APR below 10% is definitely good, but you may have to go to a local bank or credit union to find it. The Federal Reserve tracks credit card interest rates, and an APR below the average would also be considered good.
Who is offering highest interest rate for fixed deposit? ›
Overall best fixed deposit rates—highest in Singapore (Jun 2024)
- Syfe Cash+ Guaranteed (3.75% p.a.—3 or 6 months with no minimum amount)
- StashAway Simple Guaranteed (3.75% p.a.—3 months with no minimum amount)
- SBI (3.35% p.a.—min. $50,000 for 6 months)
- ICBC (3.40% p.a.—min. $500 for 3 months)
Federal Bank Fixed Deposit Rates 2024. Federal Bank offers the Fixed Deposit (FD) scheme at interest rates ranging from 3.00% p.a. to 7.40% p.a. The tenure of the FD account ranges between 7 days and 10 years. Apart from Indian residents, the bank offers the scheme for Non-Resident Indians (NRIs) as well.
What is the highest FD rate in SBI? ›
SBI offers FD interest rates of 3.50%-7.10% p.a. to the general public and 4.00%-7.60% p.a. to senior citizens for tenures ranging from 7 days to 10 years. The interest rate of SBI Tax Saving FD is 6.50% p.a. for the general public and 7.50% p.a.
