Co-operative Bank Fixed Deposit Interest Rate as on (Jul 2025)

One of the banking products offered by Co-operative banks is Fixed Deposit. As Co-operative banks work on passing on maximum benefit to their customers, they offer higher interest on their Fixed Deposits. Further, they offer senior citizens more rate of interest as compared to general public.

The current fixed deposit interest rates offered by different Co-operative banks for various tenures from 7 days to 10 years range between 7% and 9.25% per annum. You can use FD Interest Rate Calculator to calculate the interest and maturity value of your FD. You can also compare the interest rate offered by co-operative banks with commercial banks.

Outlined below is Co-operative Banks Fixed Deposit Interest Rate (as on 08 Jul 2025) detailing the interest rates on Co-operative Banks Fixed Deposits for 1 year period. You can click on "FD Interest Rates" button to view FD interest rates of all the tenures offered by a particular bank.

Co operative Banks Fixed Deposit Interest Rate

For Whom Fixed Deposit is a Preferred Investment Option?

• Persons who do not want to take any kind of risk. It has very low risk as compared to other instruments such as equity, debentures, mutual funds, etc. With FD, one will not lose his/ her principal invested.
• Investors who want a regular income. It is an instrument which generates fixed returns hence those who need a regular income can opt for interest payout option either monthly or quarterly.
• People who are Older. Older persons, generally senior citizens, want a hassle-free and safe investment vehicle and they do not want to manager any risky portfolio at that age. Therefore, they can easily invest in Fixed Deposit.
• Investors who want to diversify their portfolio. It is a famous adage that "Do not put all your eggs in one basket" hence investors who want to make investments in different instruments, surely, keep some of their lump sum money in FDs.

Co-operative Banks are the banks which are registered under the Cooperative Societies Act, 1912 and regulated by the Reserve Bank of India (RBI) and Banking Laws Act. Co-operative banks have been formed with the objective to offer financial assistance to economically weaker sections of the society & they are created by the people belonging to same local/ professional community who share a common interest and objectives. They are known to provide better services to the customers due to their personal interaction with customers and local reach. Fixed deposit (FD) interest rates at cooperative banks may vary on the basis of the lending bank, the tenure of the deposit and whether the depositor is a senior citizen.

Co-operative banks cater to the credit needs of agriculturists and small businesses. Co-operative banks offer their members and non-members (owners as well as customers) a wide range of banking and financial services such as bank deposits, loans, etc.

Co-operative banks have been divided under following 3 categories:

1. Urban Co-operative Banks
2. District Central Co-operative Banks (DCCB)
3. State Co-operative Banks

Features of Cooperative Banks

• Minimum and Maximum Deposit: The minimum deposit amount can be as low as Rs.500 and usually there is no upper limit in majority of banks.
• Interest Rates: Cooperative banks often provide competitive interest rates on FDs. Their Interest Rates range from 5.40% to 6.75% per annum for regular customers and senior citizens receive up to 0.60% higher interest rates.
• Tenure of FDs: The tenure for FDs in cooperative banks may vary from short-term (7 days to 1 year) to long-term (up to 10 years or more).
• Interest Rate Compounding: Interest is generally compounded quarterly which improves the overall returns.

Benefits of Cooperative Banks

• Community Focus: Cooperative banks are formed by members of the same local or professional community which can lead to more personalized banking services.
• Higher Interest Rates for Senior Citizens: Senior citizens often receive higher interest rates compared to regular customers and hence it is a beneficial option for retirees.
• Support for Small Businesses and Agriculturists: These banks provide financial assistance to small businesses and agriculturists and also contribute to local economic development.
• Safety and Security: Cooperative banks are regulated by the Reserve Bank of India (RBI) and the Banking Laws Act so they provide a certain level of safety and security to depositors.

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