Fixed deposits are a popular form of investment in India because of the assured returns combined with guaranteed security of the capital amount. The interest rate on fixed deposits varies from bank to bank but depend on some common factors, such as the current global and national economic conditions, the type of FD, the tenure chosen, the age of the investor, etc.
Senior citizens, those above 60 years of age, are often given a rate of interest which is 0.50% more than those below the age of 60. There are also Tax Saving FDs which have a lock-in period of 5 years and offer tax exemptions under Section 80C of the Income Tax Act.
FDs for Non-Resident Indians also offer non-taxable interest income in India as well as fully repatriable interest and principal amount. FDs are now offered by Non-Banking Financial Companies (NBFCs) as well as small finance banks with high rates of interest.
Banks and NBFCs offering a higher rate of return on fixed deposit accounts:
These are the banks and NBFCs offering a higher rate of interest on domestic fixed deposits below Rs.2 crore across popular tenures:
Banks and NBFCs offering a higher rate of returnUp to 3-Year Tenors
Bank/ NBFC | 1 Year (p.a.) | 3 Year (p.a.) |
Mahindra Finance (Samruddhi) | 7.40% | 8.05% |
8.00% | 6.75% | |
6.25% | 8.00% | |
7.00% | 7.00% | |
7.25% | 7.75% | |
6.40% | 6.25% | |
6.25% | 6.50% | |
7.00% | 7.10% | |
6.75% | 6.25% | |
6.50% | 7.25% |
Banks and NBFCs offering a higher rate of returnUp to 5-Year Tenors
Bank/ NBFC | 4 Year (p.a.) | 5 Year (p.a.) |
Mahindra Finance(Samruddhi) | 8.05% | 8.05% |
6.75% | 6.25% | |
7.50% | 8.00% | |
6.75% | 6.75% | |
7.75% | 7.75% | |
6.25% | 6.25% | |
6.50% | 6.50% | |
7.10% | 7.10% | |
6.25% | 6.25% | |
7.00% | 7.00% |
Highlights
- Most banks and NBFCs provide interest in the range of 6.25% p.a. to 7.50% p.a.
- The highest rate paid is by IDFC Bank with an interest rate of 7.25% p.a. for a tenure of two years.
- The next highest rate paid is by ESAF Bank with an interest rate of 8.50% p.a. for a tenure of two years.
- The next highest interest rate is 8.05% p.a. for a tenure of five years by Mahindra Finance and Fincare Small Finance Bank for a tenure of five years.
- An interest rate of 7.00% is also offered by KTDFC for tenures of one year, two years, and three years.
- Repco Bank offers 7.05% p.a. for tenures of two years.
FAQs on Which Bank offers the Highest Interest Rate for FD
- How much interest does Repco Bank offer for a tenure of 3 years?
Repco Bank offers 6.25% p.a. for tenures of 3 years.
- How much should I deposit to get these returns?
The banks and NBFCs offer a high interest rate on domestic fixed deposits below for a deposit amount of Rs.2 crore.
- Which bank offers the highest FD rates?
The highest rate paid is by ESAF Small Finance Bank with an interest rate of 8.00% p.a. for a tenure of 3 years.
- Under which scheme of Mahindra Finance can I get high rates?
An interest rate of 7.25% p.a. is the third highest interest rate and is offered by Mahindra Finance (Samruddhi) for a tenure of 4 years.
- Do senior citizens get more interest rates?
Senior citizens, those above 60 years of age, are often given a rate of interest which is 0.50% more than those below the age of 60.
About the Author
Tanveer Masood
Tanveer Masood is an experienced content writer with passion for simplifying personal finance topics for the readers. In a career spanning 12 years, he has written content for a wide range of websites, blogs, magazines, news papers and for a variety of topics. Tanveer has been a part of the content team at BankBazaar since 2015, and has through his writing, tried to educate people about different aspects of personal finance such as credit cards, loans, managing taxes, investments and so on.
