Top FD rates in 22 private & public banks for short, long-term investments

Fixed deposit (FD) interest rates in India vary subtly across banks, depending on factors like deposit amount, tenure, and depositor age. While private banks often lead in offering higher rates for short-term deposits, public sector banks remain competitive, especially for longer durations. Senior citizens generally benefit from higher interest rates, and the choice between withdrawal options impacts both flexibility and returns.

 

Among private sector banks, DCB Bank offers the highest interest rate of 8.05% for fixed deposits with a tenure of 19 to 20 months, followed closely by RBL Bank at 8.00% for a tenure of 500 days and IndusInd Bank at 7.99% for deposits between 1 year 5 months and 1 year 6 months. In the public sector, Central Bank of India provides the highest rate of 7.50% for tenures of 1111 and 3333 days. Other notable public banks include Bank of Maharashtra and Punjab & Sind Bank, offering 7.45% for 366 days and 555 days, respectively, according to Paisabazaar. These rates highlight competitive options for savers across both sectors, with private banks leading in short-term slabs and public banks offering attractive rates for longer durations.

 

FD rates of top private banks

 

1. Axis Bank

Highest rate: 7.25% for 15 months to less than 2 years

1-year: 6.70%, 3-year: 7.10%, 5-year: 7%

 

2. City Union Bank

Highest rate: 7.50% for 333 days

1-year: 7%, 3-year: 6.50%, 5-year: 6.25%

 

3. DCB Bank

Highest rate: 8.05% for 19 to 20 months

1-year: 7.10%, 3-year: 7.55%, 5-year: 7.40%

 

4. HDFC Bank

Highest rate: 7.40% for 4 years 7 months (55 months)

1-year: 6.60%, 3-year: 7%, 5-year: 7%

 

5. ICICI Bank

Highest rate: 7.25% for 15 months to 2 years

1-year: 6.70%, 3-year: 7%, 5-year: 7%

 

6. IDFC First Bank

Highest rate: 7.90% for 400 to 500 days

1-year: 6.50%, 3-year: 6.80%, 5-year: 6.75%

 

7. IndusInd Bank

Highest rate: 7.99% for 1 year 5 months to less than 1 year 6 months

1-year: 7.75%, 3-year: 7.25%, 5-year: 7.25%

 

8. Kotak Mahindra Bank

Highest rate: 7.40% for 390 days to less than 23 months

1-year: 7.10%, 3-year: 7%, 5-year: 6.20%

 

9. RBL Bank

Highest rate: 8% for 500 days

1-year: 7.50%, 3-year: 7.50%, 5-year: 7.10%

 

10. YES Bank

 Highest rate: 7.75% for 18 months to less than 24 months

 1-year: 7.25%, 3-year: 7.25%, 5-year: 7.25%

 

These rates appeal to savers seeking short-term investment options with high returns.

 

FD rates of top public banks

 

1. Bank of Baroda

Highest rate: 7.30% for 400 days (Bob Utsav)

1-year: 6.85%, 3-year: 7.15%, 5-year: 6.80%

 

2. Bank of India

Highest rate: 7.30% for 400 days

1-year: 6.80%, 3-year: 6.50%, 5-year: 6%

 

3. Bank of Maharashtra

Highest rate: 7.45% for 366 days

1-year: 6.75%, 3-year: 6.50%, 5-year: 6.50%

 

4. Canara Bank

Highest rate: 7.40% for 3 years to less than 5 years

1-year: 6.85%, 3-year: 7.40%, 5-year: 6.70%

 

5. Central Bank of India

Highest rate: 7.50% for 1111 and 3333 days

1-year: 6.85%, 3-year: 7%, 5-year: 6.75%

 

6. Indian Bank

Highest rate: 7.30% for 400 days (IND SUPER)

1-year: 6.10%, 3-year: 6.25%, 5-year: 6.25%

 

7. Indian Overseas Bank

Highest rate: 7.30% for 444 days

1-year: 7.10%, 3-year: 6.50%, 5-year: 6.50%

 

8. Punjab National Bank

Highest rate: 7.25% for 400 days

1-year: 6.80%, 3-year: 7%, 5-year: 6.50%

 

9. Punjab & Sind Bank

Highest rate: 7.45% for 555 days

1-year: 6.30%, 3-year: 6%, 5-year: 6%

 

10. State Bank of India

 Highest rate: 7.25% for 444 days (Amrit Vrishti)

 1-year: 6.80%, 3-year: 6.75%, 5-year: 6.50%

 

11. Union Bank of India

 Highest rate: 7.30% for 456 days

 1-year: 6.80%, 3-year: 6.70%, 5-year: 6.50%

 

Public banks often attract investors with longer tenures and reliable returns.

 

Senior citizens: Extra benefits on fixed deposits

 

Senior citizens, aged 60 and above, usually enjoy an additional 0.5% interest on FDs. This higher rate provides better yields, catering to their often fixed-income needs. For example, if a standard FD rate is 7%, senior citizens would earn 7.5% for the same tenure.

 

Withdrawal options: Impact on returns

 

Fixed deposits can be broadly categorised into two types:  

1. With premature withdrawal options: These FDs offer flexibility to withdraw funds early but come with slightly lower interest rates.  

2. Without premature withdrawal options: These FDs provide higher rates since funds are locked in, offering banks greater certainty in fund utilisation.

 

Adhil Shetty, CEO of Bankbazaar.com, explained this distinction, saying, “When banks offer FDs without the option to withdraw before maturity, they gain more certainty in managing their funds. This stability enables them to pass on benefits to customers as slightly higher interest rates.”

 

For example, a 5-year FD of Rs 1,00,000 with a withdrawal option may offer 7% interest, resulting in Rs 1,41,478 at maturity. Without the withdrawal option, the interest rate could rise to 7.5%, maturing at Rs 1,44,995—a difference of Rs 3,517.

 

Key points to consider before investing  

Lock-in period: Match the FD tenure with your financial goals.  

Interest rate variations: Compare rates across banks to maximise returns.  

Penalties: Check for penalties on premature withdrawals if flexibility is important. 

 

Fixed deposits remain a reliable choice for risk-averse investors, providing stability and guaranteed returns. Investors must weigh options based on tenure, flexibility, and rates.