Fixed deposit (FD) interest rates in India fluctuate over time, largely influenced by the repo rate set by the Reserve Bank of India (RBI). However, these rates vary across banks. Generally, private sector banks offer relatively higher FD rates, while public sector banks provide lower rates. If you are seeking high returns, here is a look at some of the top banks FD in India.
Comparison of Fixed Deposits Rates Across Banks in India
The following sections illustrate the fixed deposit rates across private banks, small finance banks, foreign banks and nationalised banks in India for you to determine which bank is best for fixed deposit:
Private Sector Banks in India
Here are the domestic FD interest rates for prominent private-sector banks in India as of October 2024:
| Bank Name | Highest Interest Rate (Non-Senior Citizens) | Highest Interest Rate (Senior Citizens) |
| HDFC Bank | 7.40% (for FD amount below ₹3 crore) | 7.90% (for FD amount below ₹3 crore) |
| ICICI Bank | 7.25% (for FD amount below ₹3 crore) | 7.80% (for FD amount below ₹3 crore) |
| Axis Bank | 7.25% (for FD amount below ₹3 crore) | 7.75% (for FD amount below ₹3 crore) |
| Bandhan Bank | 8.05% | 8.55% |
| Kotak Mahindra Bank | 7.40% (FD amount less than ₹3 crore) | 7.90% (FD amount less than ₹3 crore) |
| DBS Bank | 7.50% | 8% |
| DCB Bank | 8.05% | 8.55% |
| Federal Bank | 7.40% | 7.90% |
| IDFC Bank | 7.75% | 8.25% |
| IndusInd Bank | 7.75% | 8.25% |
| RBL Bank | 8.10% | 8.60% |
| Yes Bank | 7.75% | 8.25% |
Small Finance Banks in India
Here are the highest FD interest rates offered by small finance banks in India as of October 2024:
| Bank Name | Highest Interest Rate (Non-Senior Citizens) | Highest Interest Rate (Senior Citizens) |
| AU Small Finance Bank | 8% (for less than ₹3 crore deposits) | 8.50% (for less than ₹3 crore deposits) |
| Equitas Small Finance Bank | 8.25% | 9% |
| ESAF Small Finance Bank | 8.25% (less than ₹3 crore term deposit) | 8.75% (less than ₹3 crore term deposit) |
| Jana Small Finance Bank | 8.25% | 8.75% |
| Suryoday Small Finance Bank | 8.60% | 9.10% |
| Ujjivan Small Finance Bank | 8.25% | 8.75% |
| Utkarsh Small Finance Bank | 8.50% | 9.10% |
Foreign Banks in India
The following are the highest FD interest rates offered by some leading foreign banks in India as of October 2024:
| Bank Name | Highest Interest Rate (Non-Senior Citizens) | Highest Interest Rate (Senior Citizens) |
| Deutsche Bank | 8% | 8% |
| HSBC Bank | 7.50% | 8% |
| Standard Chartered Bank | 7.50% | 8% |
Nationalised Banks in India
Here are the highest interest rates on term deposits (deposit amount below ₹3 crore) of nationalised banks in India as of October 2024:
| Bank Name | Highest Interest Rate (Non-Senior Citizens) | Highest Interest Rate (Senior Citizens) |
| Bank of Baroda | 7.15% | 7.65% & 7.75% (for super senior citizens) |
| Bank of India | 7.30% | 7.80% |
| Bank of Maharashtra | 7.40% | 7.90% |
| Canara Bank | 7.25% | 7.75% |
| Central Bank of India | 5.50% | 6.00% |
| Indian Bank | 7.30% | 7.80% (senior citizens) and 8.05% (super senior citizens) |
| Indian Overseas Bank | 7.30% | 7.80% |
| Punjab National Bank | 7.25% | 7.75% (senior citizens) and 8.05% (super senior citizens) |
| State Bank of India | 7% | 7.5% |
| Union Bank of India | 7.30% | 7.80% (senior citizens) and 8.05% (super senior citizens) |
Eligibility Criteria for Fixed Deposits
Here are the eligibility criteria for booking FD with banks:
- Resident individuals
- Hindu Undivided Families (HUF)
- Sole proprietorship firms
- Partnership firms
- Private Limited Companies
- Trust Accounts
Documents Required to Open Fixed Deposits
If you already hold an account with a bank, the bank will use the existing KYC documents to book your FD. However, if you are a new customer, you will need the following KYC documents to open an FD:
- PAN card
- Address Proof (Aadhaar card, driving licence, passport)
- You might need a photo additionally, based on the requirements of the concerned bank.
Taxation on the Interest of Fixed Deposits
The interest you earn from top banks FD in India is considered income from other sources and is subject to taxation. Here are the conditions when the bank deducts TDS (Tax Deductible a Source) on your FD interest:
- If your interest income from FD exceeds ₹40,000 per year, the concerned bank will deduct TDS.
- TDS deduction is applicable if the account holder has not submitted Form 15G or 15H at the beginning of a fiscal year.
Factors Affecting Fixed Deposit Interest Rates
The following are the factors that affect the interest rates offered by the top banks FD in India:
1. Deposit Tenure:
A short FD tenure can accrue a lower interest rate for the account holder. On the other hand, a longer FD tenure comes with a higher FD interest rate. You can book an FD for a minimum tenure of 7 days to a maximum tenure of 10 years.
2. Age of the Customer:
Senior citizens above 60 years usually receive a higher interest rate on FD. Banks offer approximately 0.25% to 0.50% higher interest rates to senior citizens compared to non-senior citizens.
3. Resident Status:
Banks make provisions for non-resident Indians to book FD such as NRE (non-resident external) deposits, NRO (non-resident ordinary) deposits, FCNR (foreign currency non-resident) deposits and RFC (resident foreign currency) deposits. However, the interest rates for the aforesaid FD might vary from the FD rate of resident Indians.
The Bottom Line
Top banks FD in India provide account holders with high interest rates based on the FD amount, tenure and age of the customer. Choose a tenure that offers the highest interest rate to reap the maximum benefit. Moreover, make sure to submit Form 15G or 15H in order to avoid TDS deduction.
