In an FD Account, a person has to keep a fixed amount for a certain period of time with a bank or a financial institution. Against this deposited amount, the person will earn a certain fixed interest which has been offered by the bank while opening the FD account.
Bank calculates the interest in an Bank FD account based on the deposited amount, rate of interest and the tenure of investment. If you deposit higher amount in your bank FD account, you will get higher fd interest rates. You can make use of your FD account to achieve your short term or long term financial objectives. According to your objectives, you can choose to deposit a certain amount of money for a fixed duration.
There are 2 options available in FD for interest payment. One is "cumulative option", in which you will receive the total interest on maturity of your FD account and second one is "non-cumulative option", in which you will receive monthly or quarterly payouts of accumulated interest as per your requirement.
It is to be kept in mind that the interest earned on an FD account is subject to income tax. If the interest earned crosses Rs 10,000 in a given financial year, banks deduct a TDS at 10% from the interest to be paid to such FD account holders. Under tax saver FD, you can claim exemption of upto Rs 1.5 lakhs per financial year under Section 80C of the Income Tax Act but there will be a lock in period of 5 years.
As per its name, the amount deposited in an FD remains fixed for the whole tenure and banks do not provide the facility to withdraw the fund before the maturity. In case of urgent need of money, however, you can withdraw the funds prematurely also but you will have to pay certain penalty for the same and you may get much lesser interest rate than what you would have earned at maturity of your FD account. Most of the banks charge premature withdrawal penalty in the form of a 0.5o% to 1% lower interest.
On maturity of FD, amounts up to Rs. 20,000 can be withdrawn in cash but amounts above Rs.20,000 need to be paid to the account holder by way of crossed cheque or can be transferred to his/ her savings account.
Bank Fixed Deposit gives you option to invest a fixed sum of money for a specified time ranging from 7 days to 10 years. Private sector banks and foreign banks offer slightly higher rate of interest as compared to public sector bank in order to attract more deposits and expand their customer base.
The interest rate on bank term deposit depends upon the duration of your investment and varies accordingly. Following table provides you the details of Bank FD Rates offered by multiple banks. You can compare and choose the best to start your FD. On clicking the link "All Interest Rates", you can view tenure wise interest rate list of selected bank. With the help of "calculate" feature shown in the table, you can easily calculate interest using FD Interest Rate Calculator on investment and the maturity value. Find latest Bank Fixed Deposit Interest Rates (as on 25 Jan 2021) below.
|Bank||Tenure||FD Interest Rate (p.a.)||Find Interest Rates||Calculate|
|North East Small Finance Bank||12 Months||7.50%|
|Abu Dhabi Commercial Bank||12 Months||7.50%|
|Suryoday Small Finance Bank||12 Months||7.25%|
|Utkarsh Small Finance Bank||12 Months||7.25%|
|Equitas Small Finance Bank||12 Months||7.10%|
|Indusind Bank||12 Months||7.00%|
|Rbl Bank||12 Months||7.00%|
|Esaf Small Finance Bank||12 Months||7.00%|
|Fincare Small Finance Bank Ltd||12 Months||6.95%|
|Yes Bank||12 Months||6.75%|
|Allahabad Bank||12 Months||6.75%|
|Idfc Bank||12 Months||6.75%|
|Bharatiya Mahila Bank||12 Months||6.70%|
|A B Bank||12 Months||6.50%|
|United Bank Of India||12 Months||6.50%|
|Dcb Bank||12 Months||6.50%|
|Capital Small Finance Bank||12 Months||6.50%|
|Ujjivan Small Finance Bank||12 Months||6.50%|
|Standard Chartered Bank||12 Months||6.30%|
|Laxmi Vilas Bank||12 Months||6.00%|
|Tamilnad Mercantile Bank||12 Months||5.90%|
|Bandhan Bank||12 Months||5.75%|
|Punjab And Sind Bank||12 Months||5.55%|
|Karur Vysya Bank||12 Months||5.50%|
|Au Small Finance Bank||12 Months||5.50%|
|South Indian Bank||12 Months||5.50%|
|City Union Bank||12 Months||5.50%|
|Syndicate Bank||12 Months||5.50%|
|Karnataka Bank||12 Months||5.50%|
|Federal Bank||12 Months||5.45%|
13-01-2020: SBI revised FD interest rate
SBI has announced a cut in retail fixed deposits of FD rates. The latest FD rates on SBI deposits is effective from 10th January 2020. The bank has cut the FD rates by 15 bps on long-term deposits maturing in 1 year to 10 years. Now FD interest rate for 7 to 45 days is 4.50%, for 46 to 179 days is 5.50%, for 180 days to 1 year is 5.80% and for 1 year to 10 years is 6.10%.
09-01-2020: Axis Bank reduced FD interest rate
Axis Bank reduced interest rates by up to 20 bps from January 9. FDs for less than Rs 2 crore and with the tenor of less than 1 year will earn 6.40%, for the tenor of 5 years to up to 10 years, FD rates is 6.50%.
07-01-2020: HDFC Bank deposits up by 25% (YoY) in 2019
The largest private sector lender HDFC Bank's deposits up by 25% (YoY) in 2019. Its deposits are at Rs 10.67 trillion as of December 31, 2019 growing by 25% as compared to Rs 8.52 trillion as of December 31, 2018..
24-12-2019: HDFC Bank revised FD interest rate
The revised rate for FDs maturing in 9 months 1 day to less than 1 year will be 6.05%. Term deposits maturing in 1 year to 2 years will fetch an interest rate of 6.3%, 2-3 years 6.40%, and 3 years to 10 years 6.3%.
01-12-2019: PNB cuts off FD rates
With effect from December 1, 2019, FDs for less than Rs 2 crore and the tenor of 271 days to below 1 year will be 6% for general customers and 6.5% for senior citizens. For the tenor of 5 years to up to 10 years, PNB has FD rates of 6.3% for general customers and 6.8% for senior citizens.
12-11-2019: ICICI Bank reduces FD interest rate
The interest rates on ICICI Bank FD for less than Rs 2 crore and the tenor of 185 days to 289 days will be 5.75%, for 5 years to up to 10 years will be 6.40% and 6.9% for senior citizens. Its interest rates will be effective from December 7, 2019.
|Allahabad Bank||Andhra Bank||Bank Of Baroda|
|Bank Of India||Bank Of Maharashtra||Canara Bank|
|Central Bank Of India||Corporation Bank||Idbi Bank|
|Indian Bank||Indian Overseas Bank||Oriental Bank Of Commerce|
|Punjab National Bank||Syndicate Bank||Uco Bank|
|Union Bank Of India||United Bank Of India||Vijaya Bank|
|State Bank Of India||State Bank Of Mysore||State Bank Of Patiala|
|State Bank Of Travancore||State Bank Of Bikaner And Jaipur||Punjab And Sind Bank|
|Axis Bank||Bandhan Bank Limited||Catholic Syrian Bank Limited|
|City Union Bank Limited||Dcb Bank Limited||Dhanalakshmi Bank|
|Federal Bank||Hdfc Bank||Icici Bank Limited|
|Idfc Bank Limited||Jammu And Kashmir Bank Limited||Indusind Bank|
|Karnataka Bank Limited||Karur Vysya Bank||Kotak Mahindra Bank Limited|
|Laxmi Vilas Bank||The Nainital Bank Limited||Rbl Bank Limited|
|South Indian Bank||Tamilnad Mercantile Bank Limited||Yes Bank|
|Equitas Small Finance Bank Limited||Ujjivan Small Finance Bank Limited||Utkarsh Small Finance Bank|
|Suryoday Small Finance Bank||Au Small Finance Bank Limited||Capital Small Finance Bank Limited|
|Esaf Small Finance Bank Limited||North East Small Finance Bank Limited||Fincare Small Finance Bank Ltd|