| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Senior Citizen Bonus |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 7.00% | 7.15% | 7.10% | 7.00% | +0.50% |
| ICICI Bank | 7.00% | 7.10% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 7.10% | 7.15% | 7.10% | 7.00% | +0.50% |
| Kotak Mahindra | 7.10% | 7.15% | 7.10% | 6.20% | +0.50% |
| Bank of Baroda | 7.05% | 7.05% | 6.85% | 6.50% | +0.50% |
| PNB | 6.80% | 7.00% | 7.00% | 6.50% | +0.50% |
| Canara Bank | 6.85% | 7.00% | 6.80% | 6.70% | +0.50% |
| IDFC First Bank | 7.50% | 7.50% | 7.25% | 7.00% | +0.75% |
| AU Small Finance Bank | 7.75% | 7.75% | 7.50% | 7.25% | +0.50% |
| Unity Small Finance Bank | 8.00% | 8.00% | 7.75% | 7.50% | +0.50% |
| Shriram Finance | 8.20% | 8.40% | 8.30% | 8.15% | +0.50% |
| Bajaj Finance | 8.05% | 8.25% | 8.10% | 7.85% | +0.25% |
| Mahindra Finance | 7.95% | 8.10% | 8.00% | 7.75% | +0.25% |
| Post Office TD | 6.90% | 7.00% | 7.00% | 7.50% | N/A |
* Rates are indicative and may vary based on individual profile. Please verify with the institution before applying.
How to Choose the Best FD
While higher interest rates are attractive, consider these factors:
- Safety: Deposits in banks are insured up to Rs. 5 lakh by DICGC (per bank). PSU banks and large private banks are safest. NBFCs (Bajaj, Shriram) offer higher rates but no DICGC insurance.
- Premature Withdrawal: Most banks charge 0.5-1% penalty on premature withdrawal. HDFC and ICICI are relatively lenient.
- Compounding: Banks typically compound quarterly. Check if interest is paid monthly, quarterly, or at maturity.
- Tax Implication: FD interest is fully taxable at your slab rate. TDS is deducted at 10% if annual interest exceeds Rs. 40,000 (Rs. 50,000 for senior citizens).
- 5-Year Tax Saving FD: Eligible for Section 80C deduction (old regime). Lock-in of 5 years. Interest still taxable.
FD Calculator
Use our FD Maturity Calculator to compute exact maturity amount for any bank's rate and tenure.
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Frequently Asked Questions
Which bank gives the highest FD rate in India?
Among small finance banks, Unity SFB offers up to 8.00% and AU SFB offers 7.75% for 1-year FD. Among NBFCs, Shriram Finance offers up to 8.40% for 2-year tenure. Among major banks, IDFC First Bank (7.50%) and Axis Bank (7.10%) are competitive.
Is FD interest taxable?
Yes, FD interest is fully taxable at your income tax slab rate. TDS is deducted at 10% if annual interest exceeds Rs. 40,000 (Rs. 50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
What is the penalty for breaking an FD early?
Most banks charge 0.5-1% penalty on premature withdrawal. For example, if the FD rate was 7% and you break it early, you may receive the rate applicable for the completed period minus 1%. Some banks like HDFC offer sweep-in FDs that avoid penalties.
FD vs Debt Mutual Fund: which is better?
Post-2023, debt mutual funds are taxed at your slab rate like FDs, removing their earlier tax advantage. FDs offer guaranteed returns and Rs. 5 lakh DICGC insurance. Debt funds offer potentially higher returns and better liquidity. For conservative investors, FDs remain simple and safe.