Your Guide to Current FD Interest Rates in India

Do you feel as if FDs are the best investment option when it comes to safety and returns? Would you like to know which bank or company offers the best rates for your FD? If yes, then we will provide you with all the information you need to make the right decisions!

Find out where you can get the best FD rates in India for both banks and companies for regular and senior citizens, what you need to know about tax-saving FDs, income tax relating to FDs and, of course, how to use the fixed deposit maturity calculator!

How to Choose an FD

When it comes to choosing an FD, you should identify your requirements in terms of the tenure or purpose, like tax saving. Banks are safer than companies when it comes to FDs. Do careful research to find out the best FD rates in India. Also, consider the credit rating of companies before you invest in them or you may lose your principal as well!

Current FD Rates Offered in India

The best FD rates in India are offered by both private and public sector banks. Senior citizens get a higher rate of return compared to regular customers. Here is a list of some of the banks and the rates offered by them for regular, as well as senior citizens:

Bank Tenure Rates for Regular Citizens Rates for Senior Citizens
Axis Bank 10 years 6.75% 7.25%
Bank of Baroda 10 years 6.25% 6.75%
Bank of India 10 years 6.35% 6.85%
Canara Bank 10 years 6.25% 6.75%
Central Bank of India 10 years 6.45% 6.95%
HDFC Bank 10 years 7% 7.5%
ICICI Bank 10 years 7% 7.5%
IDBI Bank 10 years 7%  
State Bank of India 10 years 6.25% 7.75%
Yes Bank 10 years 7.25% 7.98%

Best FDs to Invest in

The deposits offered by non-banking financial institutions and companies are known as company FDs. With higher interest rates compared to banks, come higher risks. So, ensure that the bank you choose has a credit rating of AAA or AA. Lower ratings could mean losing your invested amount.

Here is a list of highest FD interest rates offered by companies in 2019:

Name of Company FD tenure Regular Interest Rate Senior Citizen Interest Rate
Mahindra Finance 3 years 7.8%  
Sundaram Home Finance 3 years 7.25% 9.4%
HUDCO 2-3 years 7.5% 7.75%
HUDCO 1 year 7.5% 7.75%
Kerala Transport Development Finance Corporation 1 year 8.25% 7.75%
LIC Housing Finance Ltd 1 year 8.25% 7.75%
Shriram City Union Finance 1 year 7.5% 7.7%

Tax-Saving FDs: What Are They?

Tax-saving FDs are a special category of FDs offered by public and private sector banks which offer a deduction of Rs. 1.5 lacs under Section 80C of the Income Tax Act. The tenure of these FDs are 5 years.

The features of these tax-saving FDs are:

  • No loans or premature withdrawals allowed.
  • They are not offered by rural and cooperative banks.
  • Post office FDs with a 5-year duration are included in this category.
  • The account can be held in single or joint mode. The tax benefit can only be availed of by the first holder.
  • Tax is deducted at source before payment of interest. The interest can be reinvested.
  • Senior citizens are entitled to higher rates.

Taxes Payable for FDs

If you have interest from FDs exceeding Rs. 10,000/- per year, 10% of the interest is deducted by the bank as TDS. The interest earned by you from FDs will be taxed according to your tax slab.

Determinations of Returns on FDs

Calculating the returns from an FD is simple with a fixed deposit calculator. You need the tenure of the FD, the interest rate and the principal invested.

So, match the tenure of your FD with your objectives, short-term or long-term goals or saving tax, and get ready to enjoy stable returns and safety of your investment!

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