10 Best Banks for Fixed Deposits in India

10 Best Banks for Fixed Deposits in India

India’s favourite investment product – Fixed Deposits are one of the safest and most secure investment options for investors to deposit their lumpsum money. FD is a popular and easy-to-use choice with guaranteed interest rates, multiple payment options, and no market risk.

In such kind of an investment, the interest gets accumulated on the deposit over a fixed tenure, and the depositor gets the entire amount at once. Since it is free from market risk, FDs are, indeed, an ideal choice for investors who are averse to taking risks.

Almost all the banks in India provide their customers with an option to safeguard their money with FD schemes. There are different schemes with different interest rates by the banks, and picking one bank is a daunting task. But fret not; to make the decision easier, we have listed the 10 best banks for Fixed Deposits that are great options to choose from.

Why Is It Important To Include Fixed Deposit in Your Portfolio?

FDs Reduce Portfolio Risk

Fixed Deposits are some of the safest investment options whose returns are not dependent on market fluctuations. This reduces the overall risk and makes it a lot more stable option to park your hard-earned money.

Provides Assurance Of Return Upon Maturity

Unlike other investment options, Fixed Deposits provide a sure-shot return. They will let you know the exact amount that will come in and when. Irrespective of the market fluctuations, your return upon maturity will remain the same.

Best For Meeting Short-Term Goals

Since the time is less for short-term goals, the risk tolerance ability is negligible. Customers look for options that can provide them with assured returns, and Fixed Deposits are perfect for such situations. They are an ideal choice for risk-free investment to fulfill short-term goals.

Flexibility Of Withdrawal

Fixed Deposits are an investment products that are easy to withdraw even before the tenure gets over. In case of financial emergencies, you can take out all the invested money just by paying a certain penalty.

List Of Top 10 Banks For FD in India

1. ICICI Bank

One of the largest banks in India, ICICI is a perfect choice for earning assured returns and meeting long-term and short-term goals with fixed deposits.

It offers an attractive rate of return and has flexible investment tenure with or without a premature withdrawal facility.

Features

Minimum deposit: Rs 10,000 (For General Public) and Rs 2,000 (For Minors)

Maximum deposit: No limit

Tenure: 7 days to 10 years (For Traditional plan) and 6 months to 10 years (For Reinvestment plan)

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year2.75% to 4.60%3.25% to 5.10%
1 Year to 3 Years5.30% to 5.70%5.80% to 6.20%
3 Years to 10 Years5.70% to 5.75%6.20% to 6.50%
*On investment below Rs 2 Crores

2. State Bank of India

One of the most reputed and well-established banks in India, SBI offers outstanding interest rates on fixed deposits.

It is the right bank to park your lumpsum money and avail of incredible benefits like a guaranteed return, premature withdrawal, multiple interest payout options, etc.

Features

Minimum deposit: Rs 1,000

Maximum deposit: No Upper Limit

Tenure: 7 days to 10 Years

Loan: Up to 90% of principal deposit

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year 2.90% to 4.60%3.40% to 5.10%
1 Year to 5 Years5.30% to 5.45%5.80% to 5.95%
5 Years to 10 Years5.50%6.30%
*On investment below Rs 2 Crores

3. HDFC Bank

HDFC Fixed Deposits are a great source of earning in a safe and assured manner. The bank allows the users to choose the tenure and the investment amount as per their preference in order to grow the income.

Apart from competitive interest rates and incredible benefits, HDFC FDs are easy and convenient to open as well as liquidate whenever required.

Features

Minimum deposit: Rs 5,000

Maximum deposit: Rs 5 Crore

Tenure: 7 days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year 2.75% to 4.65%3.25% to 5.15%
1 Year to 5 Years 5.35% to 5.70%5.85% to 6.20%
5 Years to 10 Years 5.75%6.50%
*On investment below Rs 2 Crores

4. Axis Bank

Next on the list of best banks for fixed deposits, we have Axis Bank, which offers a safe and convenient way of growing your hard-earned extra money.

The bank allows the users to open their account from wherever they are and lets them transfer their easily from savings account to fixed deposit account.

Features:

Minimum deposit: Rs 5,000 (If booked online) and Rs 10,000 (If booked via branch)

Maximum deposit: No limit

Tenure: 7 days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year 2.50% to 4.75% 2.50% to 5%
1 Year to 5 Years 5.45% to 5.70%6.10% to 6.35%
5 Years to 10 Years 5.75%6.50%
*On investment below Rs 2 Crores

5. IDFC First Bank

If you are looking forward to setting aside your finances for a rainy day or for achieving your long-term or short-term goals, IDFC First Bank Fixed Deposits are some of the best instruments.

It is a safe and risk-free option that offers competitive interest rates that are not subject to market fluctuations and ensures handsome returns on maturity.

Features

Minimum deposit: Rs 10,000

Maximum deposit: Rs 20 Crore

Tenure: 7 days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year3.50% to 5.75%4.00% to 6.25%
1 Year to 5 Years6.00% to 6.25%6.50% to 6.75%
5 Years to 10 Years6.00%6.50%
*On investment below Rs 2 Crores

6. Canara Bank

Canara is the third-largest nationalised bank in India that offers a diverse range of fixed deposit schemes for saving and earning decent returns with no or minimal risk. The FDs by this bank have easy liquidity and greater security.

Whether you are an individual, HUF, partnership, guardian, association, company, or institution, you can safely keep your money with Canara bank.

Features

Minimum deposit: Rs 1,000

Maximum deposit: No ceiling

Tenure: 15 Days to 10 Years (7-14 days for a single deposit of Rs 5 lakh)

Loan: Up to 90% of the deposit amount

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year2.90% to 4.55%2.90% to 5.05%
For 1 Year5.30%5.80%
1 Year to 5 Years5.40% to 5.70%5.90% to 6.20%
5 Years to 10 Years5.75%6.25%
*On investment below Rs 2 Crores

7. Yes Bank

Unlike other banks, Yes Bank offers its customers double benefits on a single fixed deposit investment. Along with best-in-class interest rates, the bank provides its customers with loyalty points for enjoying multiple discount vouchers in the future.

With easy liquidity, higher flexibility, and greater safety, Yes Bank is one of the best banks for fixed deposits in India.

Features

Minimum deposit: Rs 10,000

Maximum deposit: No limit

Tenure: 7 days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year 3.25% to 5.00%3.75% to 5.50%
1 Year to 3 Years 6.00% to 6.50%6.50% to 7.00%
3 Years to 10 Years6.50%7.25%
*On investment below Rs 2 Crores

8. Kotak Mahindra Bank

A Fixed Deposit is an ideal source of investment for increasing your funds while maintaining absolute peace of mind.

Kotak Mahindra Bank offers attractive interest rates on FDs with multiple tenure options in order to fulfill your goals with more flexibility and security. It is an easy and secure way of turning all your money-saving dreams into reality.

Features

Minimum deposit: Rs 5,000

Maximum deposit: No limit

Tenure: 7 days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year 2.50% to 5.25%3.00% to 5.75%
1 Year to 3 Years5.50% to 5.75% 6.00% to 6.25%
3 Years to 10 Years5.90% 6.40%

*On investment below Rs 2 Crores

9. IndusInd Bank

Now secure your money and watch it grow with IndusInd Bank Fixed Deposit schemes. It is a guaranteed return investment to earn competitive interest rates and enjoy multiple benefits.

FDs with IndusInd bank are easy to start in just three steps with PAN and Aadhaar details. Whether you are an individual, HUF, Club, Trust, Association, or a company, the bank will make your money work for you.

Features

Minimum deposit: Rs 10,000

Maximum deposit: Rs 10 Lakhs (Existing Customer) and Rs 90,000 (New Customers)

Tenure: 7 Days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
Less than 1 Year 3.25% to 5.50%3.75% to 6.00%
1 Year to 3 Years6.00% to 6.50%6.50% to 7.00%
3 Years to 5 Years6.50%7.00%
5 Years and Above6.00%6.50%
*On investment below Rs 2 Crores

10. Punjab & Sind Bank

Punjab & Sind Bank offer attractive interest rates to customers who want to go safely in their investments by choosing Fixed Deposits. It is a perfect choice among risk-averse individuals, partnership firms, HUFs, societies, trusts, etc.

The bank offers multiple tenure options for investing your money as per the duration of your goals.

Features

Minimum deposit: N/A

Maximum deposit: N/A

Tenure: 7 Days to 10 Years

TenureInterest Rate for General Citizens (p.a.)*Interest Rate for Senior Citizens (p.a.)*
7 Days to 179 Days3.00% to 3.90% 3.00% to 3.90%
180 Days to 364 Days4.45% to 4.50%4.95% to 5.00%
1 Year to 3 Years5.25% to 5.35%5.75% to 5.85%
3 Years to 5 Years5.55%6.05%
*On investment below Rs 2 Crores

Final Word

A fixed deposit, a unique financial instrument, is the perfect choice for earning guaranteed returns over a specific period of time. It carries zero risk and makes it easy for the depositor to accumulate a big amount with ease and ultimate peace of mind.

Among all the banks that provide customers with various FD schemes, we have listed the 10 best banks. We believe ICICI and Yes Bank are among the best banks for higher interest rates and greater benefits along. They also allow you to manage your investment easily via mobile apps. However, you must check out the entire list and choose one bank as per your needs and investment goals.

FAQs

Which Indian Bank is best for FD?

There are a lot of banks in India that provide their customers with an attractive rate of interest and other benefits. For picking one of the best banks for Fixed Deposits, you must look for higher interest rates, lesser penalty, total yield, the credibility of the bank, and interest compounding frequency.

So, the choice of the bank totally depends upon the depository and their needs. However, we personally prefer FDs by IndusInd Bank, Yes Bank, and IDFC First Bank because of higher interest rates even on short-term investments.

Which bank FD rate is high?

As of writing this, Suryoday Small Finance Bank offers the highest rate of interest on an FD in India. It offers up to 7.49% interest per annum. However, Yes Bank and IndusInd bank are the highest FD interest rate providers among private banks.

Sources

  1. https://www.icicibank.com/Personal-Banking/account-deposit/fixed-deposit/fd-interest-rates.page?#toptitle
  2. https://sbi.co.in/web/interest-rates/deposit-rates/retail-domestic-term-deposits
  3. https://www.hdfcbank.com/personal/resources/rates#/fixed-deposit-interest-rate-less-than-5-cr
  4. axisbank.com/interest-rate-on-deposits
  5. https://www.idfcfirstbank.com/personal-banking/deposits/fixed-deposit/fd-interest-rates
  6. https://canarabank.com/User_page.aspx?othlink=9
  7. https://www.yesbank.in/personal-banking/yes-individual/deposits/fixed-deposit
  8. https://www.kotak.com/en/personal-banking/deposits/fixed-deposit/fixed-deposit-interest-rate.html
  9. https://www.indusind.com/in/en/personal/rates.html
  10. https://punjabandsindbank.co.in/content/interestdom
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