Best Banks for Fixed Deposit in India: Check Latest FD Rates

All bank’s FD interest rates are dynamic and evolve with time. Depending on your preferred bank’s policy and other factors, it changes for every deposit you make. These rates are mentioned on the official website of the bank, which allows you access to complete data to estimate your returns. 

This way, you can compare multiple issuers’ rates and select the most favourable type of FD. To begin, you should understand how financial institutions offering fixed deposits calculate your FD interest. Read on to know which bank is best for fixed deposits, factors that affect it, how to choose and more.

Factors Affecting FD Interest Rate

Before knowing the best bank for fixed deposit in India, you should know how financial companies decide your FD rates. Here are the parameters:

• Tenure

This is the most common and visible factor that can increase or decrease your interest rate on a term deposit. In general, a longer tenure gives you a higher interest rate while making a deposit for a shorter tenure earns you low interest. Some banks may offer special tenures for which you can earn a higher rate, so watch out for those.  

• Investment Amount

A larger deposit can earn you a higher interest. As such, deposits up to ₹3 crore will attract lower interest as opposed to deposits over ₹3 crore, even if you choose the same tenure. 

• Age 

If you are investing in a senior citizen account, you can get an additional rate of hike to 0.25% to 1% or more based on the bank. 

• Repo Rate

Banks do not have the liberty to choose any interest rate on their own. They must adhere to the RBI policy to calculate the interest rates based on the repo rate. If the repo rate is higher, FD rates will also be high and vice versa. 

• Inflation

To combat inflation, the RBI may increase the repo rate. This may lead to higher FD rates, so investing in this climate can be a good decision. 

• Fixed Deposit Type

When you choose a tax saver FD, your invested amount is locked in for 5 years. To compensate for this reduced liquidity of your funds, banks offer you are higher interest rate. In some cases, you can get the highest FD rates in banks by investing in tax-saving FD for 5 years instead of the maximum tenure of 10 years. Similarly, investing in a cumulative FD gives you higher rates than a non-cumulative FD. 

• Premature Withdrawal 

When you withdraw your funds after the completion of the tenure, most banks charge a penalty. This can reduce your interest rates by 0.5% to 1%, reducing your overall earnings.

Some of the Top Banks’ FD Interest Rates

Now that you know the factors that dictate how you can earn the maximum returns, you can make informed decisions. To simplify your search, here are some banks with the best fixed deposit rate for FDs of less than ₹3 crores:

Banks	Interest Rate for Regular Citizens		Interest Rate for Senior Citizens
	Minimum	Maximum	Minimum	Maximum
Axis Bank	3% p.a.	7.25% p.a.	3.50% p.a.	7.75% p.a.
Bank of Baroda	4.25% p.a.	7.15% p.a.	4.75% p.a.	7.65% p.a.
Canara Bank	4% p.a.	7.25% p.a.	4% p.a.	7.75% p.a.
HDFC Bank	3% p.a.	7.40% p.a.	3.50% p.a.	7.90% p.a.
ICICI Bank	3% p.a.	7.25% p.a.	3.50% p.a.	7.80% p.a.
IDFC Bank	3% p.a.	7.75% p.a.	3.50% p.a.	8.25% p.a.
IndusInd Bank	3.50% p.a.	7.75% p.a.	4% p.a.	8.25% p.a.
Kotak Mahindra Bank	2.75% p.a.	7.40% p.a.	3.25% p.a.	8.14% p.a.
Punjab National Bank	3.50% p.a.	7.25% p.a.	4.30% p.a.	8.05% p.a.
SBI Bank	3.50% p.a.	7% p.a.	4% p.a.	7.50% p.a.
Yes Bank	3.25% p.a.	7.75% p.a.	3.75% p.a.	8.25% p.a.

Disclaimer: These rates are the latest as of November 2024 and are subject to the bank’s policy. They can change at any time at the discretion of the bank, so check them before you invest. 
Knowing the banks with the best fixed deposit rate helps you make better choices and potentially earn better returns. In addition, try to avoid withdrawing your funds before the tenure is complete. If you need urgent funds, choosing an affordable loan without any end-use restrictions can be a good solution.