Fixed deposits (FDs) stand out as one of the safest investment choices in India. They offer a reliable avenue to earn interest on deposited funds, with predetermined interest rates set by NBFCs or banks.
Investing in FDs allows you to plan your finances effectively, providing a predictable source of returns. This makes fixed deposits an excellent option for growing your savings.
The interest earned through them is not only safe but also guaranteed until the maturity date. Before booking an FD, it's crucial to comprehend fixed deposit interest rates and how they function, ensuring informed decision-making for a profitable investment.
Instantly determine the potential interest earned on your FD with the fixed deposit calculator provided below:
This table showcases some of the highest FD interest rates banks offer on deposits under ₹2 Crores for non-senior citizens in 2024.
Bank Name |
Interest Rate (p.a.) |
Axis Bank |
Up to 7.10% |
ICICI Bank |
Up to 7.10% |
HDFC Bank |
Up to 7.20% |
Canara Bank |
Up to 7.25% |
Kotak Mahindra Bank |
Up to 7.25% |
SBI |
Up to 7.00% |
Bank of Baroda |
Up to 7.25% |
Bandhan Bank |
Up to 7.85% |
IDBI Bank |
Up to 7.00% |
IDFC Bank |
Up to 7.75% |
Indian Bank |
Up to 7.25% |
IndusInd Bank |
Up to 7.50% |
Punjab National Bank |
Up to 7.25% |
Union Bank |
Up to 7.25% |
Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the bank’s discretion.
This table displays some of the highest interest rates on deposits under ₹2 Crores for fixed deposits for senior citizens in 2024.
Bank Name |
Interest Rate (p.a.) |
Axis Bank |
Up to 7.75% |
ICICI Bank |
Up to 7.65% |
HDFC Bank |
Up to 7.75% |
Canara Bank |
Up to 7.75% |
Kotak Mahindra Bank |
Up to 7.80% |
SBI |
Up to 7.50% |
Bank of Baroda |
Up to 7.75% |
Bandhan Bank |
Up to 8.35% |
IDBI Bank |
Up to 7.50% |
IDFC Bank |
Up to 8.25% |
Indian Bank |
Up to 7.75% |
IndusInd Bank |
Up to 8.25% |
Punjab National Bank |
Up to 7.50% |
Union Bank |
Up to 7.75% |
Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the bank’s discretion.
Below are the maximum interest rates for some of the NBFCs for non-senior citizens on deposits under ₹2 Crores. You can compare and choose your most preferred one while booking an FD:
NBFC Name |
Maximum Interest Rate |
Bajaj Finance |
Up to 8.60% |
Mahindra Finance |
Up to 8.05% |
Shriram Finance |
Up to 8.60% |
Muthoot Capital |
Up to 8.50% |
Punjab National Bank Housing |
Up to 7.85% |
LIC Housing Finance |
Up to 7.25% |
Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the NBFC/bank’s discretion.
Here are the FD interest rates offered by some of the NBFCs/HFCs for senior citizens on deposits under ₹2 Crores:
NBFC Name |
Maximum Interest Rate |
Bajaj Finance |
Up to 8.85% |
Mahindra Finance |
Up to 8.30% |
Shriram Finance |
Up to 9.10% |
Muthoot Capital |
Up to 9.00% |
PNB Housing Finance |
Up to 8.15% |
LIC Housing Finance |
Up to 7.50% |
Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the NBFC/bank’s discretion.
Many foreign banks operate in India and offer competitive interest rates on fixed deposits, making them an attractive investment option. Check the table for some of FD interest rates offered on deposits under ₹2 Crores.
Bank |
Interest Rate |
Standard Chartered Bank |
Up to 8.00% |
DBS Bank |
Up to 8.00% |
HSBC |
Up to 7.75% |
Barclays Bank |
Up to 6.36% |
Deutsche Bank |
Up to 8.00% |
SBM Bank |
Up to 8.25% |
Disclaimer: The above-mentioned rates are effective as of 24th January 2024, and are subject to change as per the NBFC/bank’s discretion.
Under Section 80C of the Income Tax Act, 1961, you can claim tax deductions of up to ₹1.50 Lakhs per financial year on your tax-saver FD. Compare the interest rates offered by different FD issuers to make an informed decision:
Bank/NBFC |
Interest Rate (p.a.) |
Suryoday Small Finance Bank |
8.75% |
AU Small Finance Bank |
8.50% |
RBL Bank |
8.00% |
Canara Bank |
7.30% |
Disclaimer: The above-mentioned rates are effective as of 9th January 2024, and are subject to change as per the NBFC/bank’s discretion.
When you invest in FD, it is crucial that you estimate your returns, as it will help you choose among the best fixed deposit rates. On Bajaj Markets, browse fixed deposits from various NBFCs and banks offering interest rates of up to 8.85% p.a. The FD booking process is simple and 100% digital.
The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.
Fixed deposit (FD) interest rates are the percentage returns you earn on your deposit for a predetermined period. Banks and NBFCs offer different rates based on the deposit amount, tenor, and lending rates.
The interest is calculated based on the principal amount (your deposit), the interest rate, and the tenor (duration). It can be compounded annually, quarterly, or monthly.
Here's the formula to calculate the maturity amount an FD:
M = P + (P x r x t)/100
Here are a few tips you could follow to get the highest interest rate possible on an FD:
Opt for longer tenors generally offer higher rates
Look for special offers or senior citizen schemes for additional benefits
Compare rates across different issuers before making a decision
Yes, interest income from fixed deposits is considered as ‘Income from Other Sources’ and is fully taxable. However, only interest income exceeding ₹40,000 (₹50,000 for senior citizens) is subjected to taxes.
Tax-saver FDs have a lock-in period of five years and qualify for tax deductions of up to ₹1.50 Lakhs under Section 80C of the Income Tax Act, 1961. However, their interest rates are typically lower than regular FDs.
Minimum deposit amounts vary between banks and NBFCs and often range from ₹1,000 to ₹5,000.
Early withdrawals are usually allowed at the cost of penalty charges. The penalty amount varies depending on the bank and the remaining tenor.
You can choose to receive the matured principal amount and accumulated interest or reinvest the entire amount for another term.