How to find the best rates for a Fixed Deposit
The table above provides the best fixed deposit rates for the selected duration and deposit amount. Use the slider to change the FD amount. The FD duration can be updated by using the duration dropdown. If you are a senior citizen, please choose the appropriate status so that you see the correct Senior Citizen FD rate.
Fixed Deposit Interest Rates for Top Banks – January 2017
The fixed deposit schemes offered by most banks can be availed for tenures ranging from as short as seven days to as long as 10 years. Few of the banks, such as the State Bank of Patiala, IDBI Bank, the Ratnakar Bank, etc. offer FDs that stretch to 20 years as well. The FD rates applicable to schemes with short tenures is very similar to the interest rates applicable to Savings Account. The interest on FDs is compounded on a quarterly basis.
Individuals who invest in fixed deposit can avail overdraft / loan facilities from the bank against the amount in their fixed deposit accounts. The interest rate charged for loans / overdrafts is usually 0.5% or 1% in addition to the interest rate applicable to the fixed deposit itself. In case the income earned from fixed deposit rates in a given financial year is over Rs.10,000, the investor can claim tax deductions at the rate of 10%.
➲Fixed Deposit Interest Rates related
Banks
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Fixed
Deposits with Bank
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Tenure
(Min-Max)
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Interest
Rates for Regular Deposit
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State Bank of India
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7 days-10 years
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5.25% p.a.-7.00% p.a.
|
Indian Post Office
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1 year-5 years
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7.10% p.a.-7.90% p.a.
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HDFC Bank
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7 days-10 years
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3.50% p.a.-7.25% p.a.
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ICICI Bank
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7 days-10 years
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4.00% p.a.-7.50% p.a.
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Axis Bank
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7 days-10 years
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3.50% p.a.-7.50% p.a.
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Punjab National Bank
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7 days-10 years
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4.25% p.a.-7.50% p.a.
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Bank of India
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7 days-10 years
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4.00% p.a.-7.25% p.a.
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Canara Bank
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7 days-10 years
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4.00% p.a.-7.50% p.a.
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Indian Bank
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7 days-More than 3 years
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5.00% p.a.-7.25% p.a.
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Bank of Baroda
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7 days-10 years
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4.50% p.a.-7.30% p.a.
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Bandhan Bank
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7 days-10 years
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3.50% p.a.-8.00% p.a.
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Kotak Mahindra Bank
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7 days-10 years
|
4.00% p.a.-6.75% p.a.
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Union Bank
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7 days-10 years
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5.00% p.a.-7.25% p.a.
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Indian Overseas Bank
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7 days-10 years
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4.00% p.a.-6.75% p.a.
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Central Bank of India
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7 days-10 years
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4.00% p.a.-7.00% p.a.
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LIC HFL
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1 year-5 years
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7.85% p.a.-7.95% p.a.
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Bank of Maharashtra
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7 days-10 years
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4.75% p.a.-6.80% p.a.
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IDFC Bank
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7 days-10 years
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4.00% p.a.-8.25% p.a.
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State Bank of Travancore
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7 days-10 years
|
5.50% p.a.-6.95% p.a.
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Yes Bank
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7 days-10 years
|
5.50% p.a.-7.15% p.a.
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Corporation Bank
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7 days-10 years
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5.00% p.a.-7.10% p.a.
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Andhra Bank
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7 days-10 years
|
4.00% p.a.-7.00% p.a.
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State Bank of Hyderabad
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7 days-10 years
|
5.50% p.a.-7.00% p.a.
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RBL Bank
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7 days-20 years
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5.00% p.a.-7.85% p.a.
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IDBI Bank
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15 days-20 years
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4.25% p.a.-7.15% p.a.
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FD Rates for Senior Citizens for Top 10 Banks – January 2017
Fixed deposits are a relatively safer and more secure form of investment than other conventional modes of investment available out in the market. Acting more like a savings instrument, the lock-in periods associated with fixed deposits allows for a more disciplined approach to long term savings or short term wealth growth. Fixed deposit tenures can be available for periods as low as 7 days to tenures as high as 10 years. Fixed deposits are an especially great idea for senior citizens considering that their sources of income are limited and people are mostly risk averse in that age group. Additionally, banks tend to offer better interest rates for senior citizens. The best fixed deposit interest rates offered by banks in India for senior citizens’ are mentioned in the table below –
FD Rates for Senior Citizens for Top 10 Banks – January, 2017
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Fixed Deposits with Bank
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Tenure (Min-Max)
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Senior Citizen FD Rates
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State Bank of India
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7 days-10 years
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5.50% p.a. to 7.75% p.a.
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Indian Post Office
|
1 year-5 years
|
7.10% p.a. to 7.90% p.a.
|
HDFC Bank
|
7 days-10 years
|
4.00% p.a. to 8.00% p.a.
|
ICICI Bank
|
7 days-10 years
|
4.50% p.a. to 8.00% p.a.
|
Axis Bank
|
7 days-10 years
|
3.50% p.a. to 8.00% p.a.
|
Punjab National Bank
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7 days-10 years
|
4.75% p.a. to 8.00% p.a.
|
Bank of India
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7 days-10 years
|
4.50% p.a. to 7.80% p.a.
|
Canara Bank
|
7 days-10 years
|
5.75% p.a. to 8.05% p.a.
|
Indian Bank
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7 days-More than 3 years
|
5.00% p.a. to 7.75% p.a.
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Bank of Baroda
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7 days-10 years
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5.00% p.a. to 7.80% p.a.
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FD rate using online calculator
A Fixed Deposit is a great way to save money for a period of time, if you’re looking at getting your invested money safely along with good earning through it then Fixed Deposit is the way to go. With the online and e-commerce platforms having such an influence on our day to day activities, checking our banking work and making decisions with relation to that is now very easy. To learn about how your Fixed Deposit earns interest and how much will be your earning at the end of the tenure chosen, online calculators will help you.
A Fixed Deposit online calculator will help you calculate the interest that your money will earn when kept in a Fixed Deposit. This will take into account your investment that's the Principal amount on maturity after the interest is compounded on a monthly, quarterly, half-yearly or yearly basis. As an example let’s say that you have a sum of Rs.15, 000 that is deposited in your bank for a period 2 years the interest the bank is paying you is an annual interest rate of 5%, The interest will be compounded quarterly for this period.
The formula used by the bank will be A = P x (1 + r/n)nt I = A - P.
Maturity Value (A) = P x (1 + r/n)nt
= 15000 x (1 + 0.05/4)4x2
= 15000 x (1 + 0.0125)8
= 15000 x (1.0125)8
= 15000 x 1.104486101
Making the Maturity Value (A) = Rs. 16567.29.
And hence leading to the Maturity Value (FD) = Rs. 16567.29
Interest Earned Amount (I) = Rs. 1567.29.
What are the factors affect the changes in rate of Fixed Deposits?
Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit.
Policies of the Reserve Bank of India - The several norms and restrictions posed by the Reserve Bank of India, in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc.
Recession - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial market. With this release the funds in the cash reserve reduces and hence again affects Fixed Deposits, loans etc.
Inflation - When prices of goods and items become more expensive on a daily basis, the opposite of recession, banks and lending institutions are scared of the devaluation of the rupee, and reducing the purchasing amount over the amount lent out. To ensure the losses of interest over the amount lent. Banks will offer higher interest rates on Fixed Deposits.
Fixed Deposit changes over a period of years
The rate of Fixed Deposits have changed over the last few financial years, in 2000-01 the rate was the highest, and stood at 9.50% -10.00%, the rate started to make a downward trend when they fell to 8.00% - 8.50% in 2001-02. They still continued to decline with the years to come in 2003-04 the fixed deposit rates fell to 5.25% -5.50%. In 2004-05 the rate climbed a little and went up to 5.75% - 6.25%, 2005-06 6.25% - 7.00%, and in 2006-07 stood at 6.50% - 8.00%. The current year’s fixed deposit rates stands at anywhere between 6.25% - 9.25%, provided by different banks for different amounts and terms of these fixed deposits.
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