Best FD Rates in India that Various Issuers Offer

Comparing FD rates across issuers is crucial before you select a tool. All you have to do is use an FD calculator online and enter the invested amount, tenor, and applicable rate.

Faiz Askari
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Fixed Deposits

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Whether you are a conservative investor or an aggressive one, Fixed Deposits (FDs) are a great addition to your investment portfolio. The majority of the FD issuers, including banks, NBFCs, and companies, offer some of the best FD rates in India, making it a lucrative option.

You get assured returns at a predetermined interest rate. Also, these rates remain stable during the entire investment period as they are not affected by market fluctuations. With this investment option, you can generate higher returns on your investment and build a sizeable corpus for the future. 

Fixed Deposit Interest Rates Offered by Various Issuers

Comparing FD rates across issuers is crucial before you select a tool. All you have to do is use an FD calculator online and enter the invested amount, tenor, and applicable rate. Keep changing these parameters until you arrive at the right FD terms.

Remember, the longer the tenor, the higher the FD rate. Check this table out to know the current interest rates on FDs of up to ₹2 Crores:

Fixed Deposit Issuer


Rate of Interest for Regular Citizens (p.a.)

Rate of Interest for Senior Citizens (p.a.)

Axis Bank

17 – 18 months

Up to 7.20%

Up to 7.85%

AU Small Finance Bank

120 months

Up to 7.25%

Up to 7.75%

Bajaj Finance

42 months

Up to 8.60%

Up to 8.85%

Federal Bank

400 days

Up to 7.40% 

Up to 7.90%


18 – 21 months

Up to 7.25%

Up to 7.75% 


15 – 24 months

Up to 7.20%

Up to 7.75%

Mahindra Finance

60 months

Up to 8.10%

Up to 8.35%

IDFC First Bank

500 days

Up to 7.90%

Up to 8.40%

Kotak Mahindra Bank

391 days – Less than 23 months

Up to 7.40%

Up to 7.90%

YES Bank

18 – 24 months

Up to 7.75%

Up to 8.25%

South Indian Bank

400 days

Up to 7.25%

Up to 7.75%

Disclaimer: The aforementioned interest rates are subject to change at the discretion of the issuer.

Benefits of Investing in Fixed Deposits

Fixed deposits are a sought-after saving option because of the wide range of benefits it offers. Here are some of them:

  • Opening a fixed deposit account is easy, requiring only minimal documentation and a straightforward application process

  • FDs provide assured returns on your investment at a fixed interest rate

  • They are low-risk investments which remain unaffected by market fluctuations

  • You enjoy the complete safety of the principal amount, and you receive it back along with interest at maturity

  • You have the flexibility of choosing the investment amount and duration as per your preferences and goals

  • By opting for a fixed deposit with monthly interest payout, you can get a stable income stream to address your monthly expenses

  • Some issuers allow you to take a loan against your FD during a financial crunch without having to liquidate your deposit

  • You also enjoy the facility of withdrawing your deposit before the maturity date by paying a premature withdrawal fee

  • By investing in tax-saving FDs, you enjoy tax deductions under the Income Tax Act, 1961

  • You can also reinvest your FD after maturity and earn compound interest on both the principal and the interest income

  • FDs help you meet your short to medium-term financial goals easily

  • They are also a great investment option to help diversify your investment portfolio

Tips for Investing in Fixed Deposits Securely

Investing in any avenue, including fixed deposits, is a vital decision. Here are some points to consider while opening a fixed deposit account:

  • Compare interest rates from various issuers before finalising an option to ensure you get suitable FD terms

  • If you are a senior citizen, check the interest rates for seniors since various issuers offer a higher rate if you are above 60 years

  • Assess your requirements and choose the interest payout frequency carefully

  • Select the investment duration carefully, as it impacts the potential returns as well as the liquidity

  • Pay attention to the charges associated with the FD, such as penalties for premature withdrawal, to make an informed decision

  • Verify the minimum investment requirement with the issuer to check if the FD option is affordable for you

  • Confirm the maturity date with the issuer to see if it aligns with your specific investment requirements

  • Check the rules and regulations associated with nominating a family member, as it can offer support in the case of unexpected demise of the FD holder

As you can see, FDs can help you build a substantial corpus, whether you are saving for higher education or retirement. To ensure you manage these goals effortlessly, assess your financial requirements and then select the FD terms. 

By researching and comparing the available options, you can make the right choice and get some of the best FD rates in India.


FD Rates in India