Fixed Deposit Interest Rate History & Trends in India from 2000

Fixed Deposits have remained one of the most trusted and popular investment options in India. If you check the history of fixed deposit rates in India, you may not believe that there was a time when the bank FD interest rates were as high as 13%.

The rates had also dropped significantly to a historical low of 5.75% in 2003-04 from 9.50%-10.00% in 2000-01. Since then, the fixed deposit rates in India have somewhat recovered but still fail to reach par with the high rates that prevailed during 1994-1999.

Fixed Deposit Rates Over the Last 20 Years

The table below indicates the course of FD interest rates over the the last 20 years in India -

Year	Average Fixed Deposit Interest Rate (% p.a.)
2023-2024*	3.25-9.40
2022-2023	5.35-5.90
2021 – 2022	5.05 - 5.35
2020 – 2021	5.25 - 5.35
2019 – 2020	5.70 - 6.40
2018 – 2019	6.25 - 7.25
2017- 2018	6.25 - 6.70
2016 – 2017	6.50 - 6.90
2015 – 2016	7.00 - 7.50
2014 – 2015	8.50 - 8.75
2013 – 2014	8.75 - 9.10
2012 – 2013	8.75 - 9.00
2011 – 2012	9.00 - 9.25
2010 – 2011	8.25 - 8.75
2009 – 2010	6.50 - 7.50
2008 – 2009	7.75 - 8.50
2007 – 2008	7.50 -9.00
2006 – 2007	7.75 - 9.00
2005 – 2006	6.25 - 7.00
2004 – 2005	5.75 - 6.25
2003 – 2004	5.25 - 5.50
2002 -2003	5.50 - 6.25
2001 – 2002	8.00 - 8.50
2000 – 2001	9.50 - 10.00
1999 – 2000	10.0 - 10.50

*The average fixed deposit rate for 2022-24 is based on the data available as of August 19, 2024

Source:

https://www.rbi.org.in/scripts/PublicationsView.aspx?id=12765
https://rbi.org.in/scripts/PublicationsView.aspx?id=17207
https://www.rbi.org.in/scripts/PublicationsView.aspx?id=20469
https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/64T_1509202299CF74062C2F41D693412F3EAAE4A649.PDF
https://www.paisabazaar.com/fixed-deposit/#:~:text=Fixed%20Deposit%20Interest%20Rates%202024,and%20large%20Private%20Sector%20Banks.

Now, let us analyse the fixed deposit interest rates and find out how the fixed deposit interest rates have changed in the last 20 years. Check out the graph depicted below to understand the change in FD rate trends.

If we analyse this chart, we can see a trendline showing a sharp decline in the fixed deposit interest rates. From 2000 to 2024, the average interest rate in India dropped from 10.50% to 3.25%.

The financial market conditions, the RBI policies, and the country’s economic conditions accounted for this change. As we know, even in this downhill, fixed deposits managed to offer one of the highest interest rates among the safest saving and investment options.

History of Fixed Deposit in India

More than 31% of the Indian population comprises the middle-class or middle-income group. People belonging to this group have extremely low income left to save or invest after meeting all their liabilities.

The shortage in disposable income favours risk-free investments like fixed deposits in the country.

Until the mid-1980s, the banks could set fixed deposit interest rates as per their choice for tenors between 15 days to a year. However, the upper limit was set at 8% per annum, and the banks could not go above this ceiling. In the mid-1980s, this ceiling was removed.

The fixed deposits underwent some degree of deregulation in India in 1992. This was when the RBI introduced a ceiling of 13% interest rate for all fixed deposits with a tenor of over 46 days.

In October 1997, RBI took further steps to deregulate these rates, following which the interest rates were no longer linked to the bank rates. Commercial banks were allowed to set interest rates and penalties over the premature withdrawal of FD at their discretion.

Today, banks have the freedom to fix their interest rates and offer guaranteed returns on your investment. You can use the online FD calculator to determine the interest that you would be earning on your investment to make better financial decisions.

Fixed Deposit Rates Today

Let us take a look at the details of the interest rates on fixed deposits offered by various banks in India.

Banks	Interest Rate (p.a.)
State Bank of India (SBI)	3.50% - 7.00%
Punjab National Bank (PNB)	3.50% - 7.25%
HDFC Bank	3.00% - 7.40%
Axis Bank	3.00% - 7.25%
IDFC Bank	3.50% - 7.75%
Bank of India	3.00% - 7.30%
Canara Bank	4.00% - 7.25%
RBL Bank	3.50% - 8.10%
Bank of Baroda (BoB)	4.25% - 7.15%
YES Bank	3.25% - 7.75%
AU Small Finance Bank	3.75% - 8.00%
Ujjivan Small Finance Bank	3.75% - 8.25%

*The interest rates mentioned here are valid as of November 22, 2024, and they may be subject to change at the bank's discretion.

Now, let us take a look at the details of the interest rates offered by various NBFCs in India.

NBFCs	Interest Rate (p.a.)
Bajaj Finance	7.11% - 8.60%
PNB Housing Finance	7.25% - 7.60%
Mahindra Finance	7.75% - 8.05%
Sundaram Finance	7.45% - 7.75%
LIC Housing Finance	7.00% - 7.25%`
Shriram Finance	7.59% - 9.40%

*The interest rates mentioned here are valid as of November 22, 2024, and they may be subject to change at the NBFC’s discretion.

People above the age of 60 or senior citizens in India are offered additional interest on fixed deposits. The FD interest rates for senior citizens are mentioned below -

Banks	Senior Citizens (p.a.)
State Bank of India (SBI)	3.50% - 7.60%
Punjab National Bank (PNB)	4.00% - 7.75%
HDFC Bank	3.50% - 7.75%
Axis Bank	5.00% - 8.00%
IDFC Bank	4.00% - 8.00%
Bank of India	3.25% - 7.25%
Canara Bank	3.25% - 7.65%
RBL Bank	4.00% - 8.30%
Bank of Baroda (BoB)	3.50% - 7.75%
YES Bank	3.75% - 8.25%
AU Small Finance Bank	4.25% - 8.50%
Ujjivan Small Finance Bank	4.25% - 8.75%

*The interest rates mentioned here are valid as of August 22, 2024, and they may be subject to change at the bank's discretion.

The table mentions the fixed deposit interest rates offered by different NBFCs to senior citizen investors:

NBFCs	Interest Rate for Senior Citizens (p.a.)
Bajaj Finance	7.35% - 8.60%
PNB Housing Finance	7.04% - 7.95%
Mahindra Finance	7.30% - 8.30%
Sundaram Finance	7.95% - 8.25%
LIC Housing Finance	7.25% - 7.75%
Shriram Finance	8.09% - 9.90%

*The interest rates mentioned here are valid as of August 22, 2024, and they are subject to change at the NBFC’s discretion.

Now that you are well versed in the history of fixed deposit rates in India, you would be wondering whom to trust and where to invest. Bajaj Markets is an exclusive online platform for all your financial needs.

You can easily open an FD account with any one of our partners and earn interest on a monthly, quarterly, half-yearly, or annual basis.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of 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. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

What were the average FD interest rates during the previous financial year?

During the previous financial year, i.e., 2023-24, the average fixed deposit rates remained between 5.5% to 7% p.a.

When were the FD rates at their peak in India?

The FD rates in India reached their peak in 1995-96 when the maximum rates offered by banks went up to 13% p.a.

What are the macroeconomic factors that affect FD interest rates in India?

RBI’s monetary policies, along with inflation, significantly impact the prevailing fixed deposit interest rates in India.

What have been the trends in FD interest rates in India over the past 10 years?

In the last 10 years, FD rates in India have generally decreased from around 8-9% a decade ago to approximately 5-7% in recent years, influenced by lower inflation and reduced repo rates.

What was India's highest FD interest rate in the last 10 years?

The highest FD rates touched approximately 9% in 2013-2014, offered by select bank.

Why did FD interest rates decrease over the past 10 years?

FD rates declined due to falling inflation, multiple repo rate cuts by the RBI, and surplus liquidity in the banking system.

What FD rates did senior citizens receive in the last 10 years?

In the last 10 years FD rates in India for senior citizens generally received an additional 0.5% to 0.75% over regular FD rates, ensuring higher returns during the period.

How can I calculate FD returns for the last 10 years?

FD returns can be calculated using the formula for compound interest, with variations based on the interest compounding frequency (e.g., annual, quarterly), available through FD calculators on bank websites.

What tax-saving FDs have been available in the last 10 years?

Tax-saving FDs with a lock-in of 5 years have been consistently available, offering deductions under Section 80C of the Income Tax Act, with rates similar to standard FDs.

What is the trend in Bank of Baroda FD rates in 2024?

BoB FD interest rates in 2024 have been steady, ranging from 6% to 7.5%, depending on tenure, and aligning with market trends.

How frequently does the Bank of Baroda revise its FD interest rates?

FD rates are revised periodically based on market conditions and monetary policy changes, typically once every few months.

What has been the trend in HDFC FD interest rates over the years?

HDFC FD interest rates in 2024 are adjusted to align with economic trends, offering competitive rates averaging between 5-7% in recent years.

Why have FD rates at HDFC Bank increased in 2024?

Rates have increased following RBI's repo rate hikes aimed at controlling inflation and normalising liquidity.

What is the trend in SBI Fixed Deposit rates for senior citizens over the last 10 years?

SBI fixed deposit rates for the last 10 years are consistent for senior citizen premium of 0.5% to 1%, keeping rates higher than the general public's during the period.

How have changes in RBI policy impacted SBI FD rates?

SBI FD rates have fluctuated with changes in the RBI's monetary policy, especially repo rate adjustments, reflecting a proportional increase or decrease in deposit rates.

What did SBI offer the highest and lowest FD rates in the last 10 years?

When we view the SBI FD interest rates - last 10 years, the highest was around 8.5% in 2013-14, and the lowest fell to approximately 4.9% during the COVID-19 pandemic.