India Bank FD & Savings Rates

A Fixed Deposit is a financial instrument provided by banks and NBFCs where you deposit a lump sum for a fixed period at a predetermined interest rate. The rate is guaranteed and does not change during the tenure, regardless of market conditions. FDs are one of the most popular savings instruments in India because of their safety, simplicity and guaranteed returns.

You can open an FD for tenures ranging from 7 days to 10 years, depending on the bank. The interest rate usually increases with longer tenures up to a point (often 1–3 years), after which it may plateau or decrease. Most banks offer both cumulative FDs (interest compounded and paid at maturity) and non-cumulative FDs (interest paid at regular intervals — monthly, quarterly or annually).

Banks calculate FD interest using compound interest, typically compounded quarterly. The formula is: A = P × (1 + r/n)^n×t, where P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the tenure in years.

For example, if you deposit ₹1,00,000 at 7% for 1 year compounded quarterly: A = 1,00,000 × (1 + 0.07/4)⁴ = ₹1,07,186. The effective yield (7.19%) is higher than the stated rate (7%) because of quarterly compounding. Some banks compound monthly or half-yearly — monthly compounding gives a slightly higher effective yield. Use the calculator on this page to compare.

In a cumulative FD, the interest is compounded and added to the principal every quarter. You receive the entire amount (principal + compound interest) at maturity. This is best for wealth accumulation when you do not need periodic income from the deposit.

In a non-cumulative FD, the interest is paid out to your savings account at regular intervals — monthly, quarterly or annually. The interest payout is calculated as simple interest on the principal. This is best for retirees or anyone who needs regular income from their savings. The total payout from a non-cumulative FD is slightly lower than cumulative because the interest is not reinvested.

A Tax-Saver FD is a special fixed deposit with a mandatory 5-year lock-in period that qualifies for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per financial year. Unlike regular FDs, premature withdrawal and loan against the deposit are not allowed during the lock-in period.

The interest rate is usually the same as a regular 5-year FD. Senior citizens get the additional rate benefit. However, the interest earned is fully taxable at your slab rate, and TDS is deducted if interest exceeds the threshold. Tax-Saver FDs are offered by both public and private sector banks (not by small finance banks, payments banks or NBFCs).

Most banks offer 0.25% to 0.75% higher FD rates for senior citizens aged 60 years and above, as a special benefit. This additional rate is offered over and above the regular FD rate for all tenures. Some banks also offer a further increment for super senior citizens aged 80 years and above — typically an additional 0.10% to 0.25%.

To avail senior citizen rates, you must be 60 or older on the date of deposit. Joint accounts may qualify only if the first holder is a senior citizen, depending on bank policy. Senior citizens also enjoy a higher TDS threshold of ₹50,000 per year (vs ₹40,000 for others) under Section 194A, and can submit Form 15H to avoid TDS if their total income is below the taxable limit.

A Non-Resident External (NRE) account allows NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) to park their foreign earnings in India in Indian Rupees. Key features:

• Interest is tax-free in India — no income tax, wealth tax or TDS on NRE FD interest.
• Fully repatriable — both principal and interest can be freely transferred abroad.
• Can be held as savings, current, recurring deposit or fixed deposit.
• Joint holding allowed only with another NRI or PIO.
• Funded from foreign remittances or transfer from another NRE/FCNR account.

NRE FD rates are typically similar to or slightly lower than domestic rates. The minimum tenure for NRE FDs is usually 1 year, and premature withdrawal rules are the same as domestic FDs. NRE accounts are ideal for NRIs who want to save foreign income in India while keeping the option to repatriate.

A Non-Resident Ordinary (NRO) account is meant for NRIs to manage income earned in India — such as rent, dividends, pension or interest. Key features:

• TDS is deducted at 30% (plus surcharge and cess) on interest earned, as income arises in India.
• Repatriation is capped at USD 1 million per financial year (after paying applicable taxes).
• Can be held jointly with a resident Indian.
• Can receive both Indian and foreign income.

NRO FD rates are usually the same as domestic general rates. NRIs can claim a lower TDS rate under DTAA (Double Taxation Avoidance Agreement) by submitting a Tax Residency Certificate (TRC) from their country of residence. NRO accounts are ideal for managing Indian-source income.

An FCNR (Foreign Currency Non-Resident) deposit allows NRIs to hold fixed deposits in foreign currency — USD, GBP, EUR, JPY, CAD or AUD. Unlike NRE FDs, there is no currency conversion risk since the deposit and maturity are both in the same foreign currency.

FCNR interest is tax-free in India (like NRE). The principal and interest are fully repatriable. FCNR rates are typically lower than NRE rupee FD rates because they are in a stronger currency. Minimum tenure is 1 year and maximum is 5 years. FCNR deposits are ideal for NRIs who plan to return abroad and want to avoid rupee depreciation risk.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the Reserve Bank of India, insures bank deposits up to ₹5 lakh per depositor per bank. This covers the combined balance across all your accounts at that bank — savings, current, FD and recurring deposit accounts.

If you have ₹3 lakh in savings and ₹4 lakh in FDs at the same bank, your total insured amount is ₹5 lakh, not ₹7 lakh. Deposits at different banks are separately insured — so ₹5 lakh at Bank A and ₹5 lakh at Bank B means ₹10 lakh total coverage. All commercial banks (public, private, small finance), regional rural banks and co-operative banks are covered. Payments banks are also covered. DICGC coverage is automatic — you do not need to apply or pay any premium.

To maximise insurance coverage: spread large deposits across multiple banks so each bank’s total stays within ₹5 lakh per depositor. Joint accounts where the order of names differs may be treated as separate from single-name accounts for insurance purposes.

Yes. Small Finance Banks (SFBs) are fully regulated by RBI under the Banking Regulation Act and are subject to the same capital adequacy, governance and reporting requirements as other scheduled commercial banks. Their deposits are insured by DICGC up to ₹5 lakh, exactly like public or private sector banks.

SFBs often offer 1–2% higher FD rates than large banks because they have higher cost of funds and need to attract deposits. Major SFBs like AU Small Finance Bank, Ujjivan, Equitas and Jana have millions of depositors and are listed on stock exchanges, providing transparency through quarterly results. The higher rates come from a legitimate business model difference, not from higher risk — though you should still stay within the ₹5 lakh DICGC limit per bank as a prudent measure.

A savings account offers 2.5–7% interest (paid on the daily closing balance), instant liquidity, and a debit card / UPI access. An FD offers 5–9% interest (depending on tenure and bank type) but locks your money for a fixed period. The key trade-off is liquidity vs return.

For money you need within 1–3 months, a savings account or liquid fund is better. For money you will not need for 6 months to 5 years, an FD gives significantly higher returns. Some banks offer sweep-in FDs (auto-sweep) that automatically move excess savings account balance into an FD, giving you FD rates on the swept amount while keeping liquidity in the savings account.

FDs and mutual funds serve different purposes. FDs offer guaranteed capital protection and fixed returns — you know exactly what you will get at maturity. Mutual funds invest in stocks, bonds or a mix, and returns depend on market performance — they can be significantly higher or lower than FDs.

Most financial planners suggest using FDs for your emergency fund and short-term goals (1–3 years), and equity/hybrid mutual funds for long-term goals (5+ years) where the higher volatility is compensated by potentially higher returns and tax efficiency.

Since April 2023, debt mutual funds (without 65%+ equity allocation) are taxed at your income tax slab rate, just like FDs. This removed the earlier LTCG benefit of indexation for debt funds. As a result, FDs and debt funds are now taxed similarly, and the choice depends on other factors:

• Liquidity: Debt funds offer T+1 redemption with no penalty; FDs charge a premature withdrawal penalty.
• Returns: Debt funds may give slightly higher or lower returns than FDs depending on the interest rate cycle.
• Safety: FDs carry zero market risk (up to ₹5 lakh per bank via DICGC). Debt funds carry credit risk and interest rate risk.
• TDS: Banks deduct TDS on FD interest automatically. Debt fund gains are reported in your ITR but TDS is not deducted on redemption.

For amounts within DICGC limits where you want zero risk, FDs remain a strong choice post-2023.

Corporate bonds and NCDs (Non-Convertible Debentures) typically offer 1–3% higher returns than bank FDs, but carry credit risk — the issuing company could default. FDs are safer because banks are more tightly regulated by RBI and insured by DICGC.

Bonds and NCDs are rated by agencies like CRISIL, ICRA and CARE — stick to AAA or AA+ rated instruments for safety. Listed NCDs can be sold on exchanges before maturity, while bank FDs require premature withdrawal (with penalty). Government bonds (G-Secs) are the safest fixed-income option and can be bought through RBI Retail Direct; their rates are typically similar to bank FDs. Platforms like IndiaBonds and GoldenPi make bond investing accessible.

A sweep-in or auto-sweep FD is a facility where any amount above a set threshold in your savings account is automatically transferred into an FD. If you need funds, the FD is automatically broken (in reverse order) to cover the shortfall in your savings account.

This gives you FD rates on your idle savings while maintaining liquidity. Most large banks (SBI, HDFC, ICICI, Axis, Kotak) offer this feature through internet banking. The threshold, tenure and minimum sweep amount vary by bank. It is an excellent way to earn higher returns without manually creating FDs for surplus savings.

FD laddering is a strategy where you split a large deposit into multiple FDs with staggered maturity dates instead of putting everything into one FD. For example, instead of putting ₹5 lakh into a single 5-year FD, you create five FDs of ₹1 lakh each maturing in 1, 2, 3, 4 and 5 years.

Benefits: (1) Regular access to liquidity as FDs mature at intervals. (2) Protection against interest rate changes — if rates rise, you reinvest maturing FDs at higher rates. (3) Reduced penalty from premature withdrawal since you only break the nearest FD if you need cash. Laddering works best when you are unsure about future interest rate direction and want both liquidity and reasonable returns.

FD interest is fully taxable as “Income from Other Sources” at your income tax slab rate. Banks deduct TDS (Tax Deducted at Source) at 10% if total interest across all FDs at that bank exceeds ₹40,000 per financial year (₹50,000 for senior citizens, under Section 194A). If your PAN is not linked, TDS is deducted at 20%.

Form 15G (for individuals below 60) and Form 15H (for senior citizens 60+) can be submitted to the bank at the start of each financial year to avoid TDS, provided your total income is below the basic exemption limit. Note: submitting 15G/15H when your income is taxable is an offence. The new tax regime (FY 2025–26) has a basic exemption of ₹4 lakh with rebate up to ₹12 lakh — plan your FD interest accordingly.

Most banks charge a penalty of 0.5% to 1% on the applicable rate if you withdraw your FD before maturity. The bank pays interest at the rate applicable for the period the deposit has actually been held, minus the penalty. For example, if you break a 3-year FD after 1 year, the bank pays the 1-year FD rate minus the penalty.

Some banks (like IndusInd, SBI for specific products) may not charge a penalty for amounts above a certain threshold or for sweep-in FDs. Tax-Saver FDs (Section 80C) cannot be prematurely withdrawn during the 5-year lock-in. Always check the premature withdrawal policy before opening an FD, especially with smaller banks that may have restrictive policies.

Consider these factors when choosing a bank FD:

1. Interest rate — compare rates for your desired tenure using this screener. Small finance banks typically offer 1–2% more than large banks.
2. DICGC coverage — keep deposits within ₹5 lakh per bank for insurance protection.
3. Crediting frequency — quarterly compounding gives slightly higher effective yields than annual.
4. Premature withdrawal policy — a lower penalty matters if you might need the money early.
5. Special schemes — many banks offer limited-period schemes with higher rates for specific tenures.
6. Online access — internet/mobile banking for easy FD creation, renewal and withdrawal.
7. Auto-renewal — check whether the bank auto-renews at the prevailing rate or needs manual renewal.

Payments Banks are a differentiated category of banks licensed by RBI that can accept deposits (up to ₹2 lakh per customer), issue debit cards, provide internet banking, and facilitate payments & remittances. However, they cannot lend money, issue credit cards, or offer fixed deposits.

Examples include Airtel Payments Bank, India Post Payments Bank (IPPB), Fino Payments Bank, Jio Payments Bank and Paytm Payments Bank. They offer savings account rates (typically 2.5–4%) and are DICGC-insured. Payments banks are designed for financial inclusion — providing basic banking to the underserved rather than full-service banking. This screener shows their savings rates but they appear as “No FD” in the FD columns.

The Reserve Bank of India classifies banks into several categories:

• Public Sector Banks (12) — majority government ownership. SBI, PNB, Bank of Baroda, Canara Bank, etc. Considered the safest due to implicit government support.
• Private Sector Banks (~20) — privately owned and publicly listed. HDFC, ICICI, Axis, Kotak, etc. Regulated equally as public banks.
• Small Finance Banks (12) — licensed since 2015 for financial inclusion, with a mandate to serve small businesses, micro enterprises and the unbanked. Often offer higher deposit rates.
• Payments Banks (6 active) — limited banking (savings + payments only, no FDs, no lending).
• Regional Rural Banks (43) — sponsored by a public sector bank, serving rural and semi-urban areas. Fully DICGC-insured.

Bank failures are extremely rare in India due to RBI’s strong regulatory oversight. If a bank faces stress, RBI can:

1. Impose restrictions — cap withdrawals (as with PMC Bank, Yes Bank) while arranging a rescue.
2. Arrange a merger — transfer the failing bank’s assets and liabilities to a stronger bank.
3. Trigger DICGC payout — if the bank is liquidated, DICGC pays each depositor up to ₹5 lakh within 90 days of the liquidation order.

In recent history, RBI has rescued every stressed bank (Yes Bank was merged with SBI-led consortium in 2020; Lakshmi Vilas Bank was merged with DBS India). No depositor at a scheduled commercial bank has lost money in modern India. However, the ₹5 lakh DICGC limit is a hard cap — amounts above it are at risk in a liquidation scenario, which is why spreading large deposits across banks is prudent.

Parents or legal guardians can open an FD in a minor’s name at most banks. The minor is the account holder and the parent/guardian operates it until the child turns 18. Interest earned on the minor’s FD is clubbed with the parent’s income for tax purposes under Section 64(1A), with a partial exemption of ₹1,500 per child per year under Section 10(32).

Once the minor turns 18, they must convert the account to a regular individual account by submitting KYC documents. Minor FDs are a common way to save for a child’s education or marriage, though mutual funds (especially equity, for 10+ year goals) may offer better inflation-adjusted returns.

A joint FD can be held by two or more individuals (up to 4 at most banks). The key operating modes are:

• Either or Survivor (E or S) — any holder can operate the account independently. On death, the survivor(s) get the deposit.
• Anyone or Survivor — similar to E or S but with more than two holders.
• Jointly — all holders must sign for any transaction.

For tax purposes, interest is taxable in the hands of the first holder. TDS is deducted based on the first holder’s PAN. DICGC coverage is calculated per depositor, so each joint holder’s share counts toward their individual ₹5 lakh limit at that bank.

Every FD should have a nominee — the person who will receive the deposit proceeds if the holder(s) die. Without a nominee, the legal heirs must go through a succession certificate or probate process, which can take months. Nomination can be made at the time of opening or added later.

A nominee is a trustee, not the owner — the money ultimately belongs to the legal heirs as per the will or succession law. But having a nominee ensures the bank can release the funds quickly without legal formalities. You can change the nominee at any time by submitting a fresh nomination form to the bank.

Most banks offer the same FD rates whether you open online or at a branch. However, some banks (especially private banks like HDFC, ICICI, Axis) occasionally offer 0.10–0.25% higher rates for FDs opened through internet banking or mobile app as an incentive for digital adoption. These are called “digital FDs” or “online specials.”

Opening an FD online is also faster (usually instant), avoids branch queues, and lets you choose tenures down to the day. Most banks allow premature withdrawal, renewal and interest certificate download through net banking. Always compare the online rate vs branch rate on the bank’s official website before opening.

All rates on this screener are sourced from official bank websites and publications. Each bank’s entry includes a lastVerified date showing when the rates were last confirmed against the bank’s published rate card. Rates are refreshed daily through our automated build pipeline.

Please note that banks can change rates at any time without prior notice. There may be a delay between a bank updating rates and our system reflecting the change. Always verify the current rate on the bank’s official website before making a deposit. This screener is a comparison tool, not a real-time rate feed.

Our automated system runs daily at 08:30 IST. It rebuilds the rate data from the latest verified sources and publishes it to this page. The “As of” date shown at the top of the page reflects the last successful build date.

When a bank announces a rate change, we update the override data and the next daily build picks it up. For major rate events (like an RBI policy rate change affecting multiple banks), updates may take 1–3 days as banks publish new rate cards at different times.

FD interest is taxable under both the old and new income tax regimes, as “Income from Other Sources” at your applicable slab rate.

Key takeaway: Under the new regime, FD interest gets no special deductions (80TTA, 80TTB, 80C for tax-saver FD all gone), but the higher rebate threshold (₹12 lakh) and lower slab rates mean many people still pay less total tax. Senior citizens who heavily use Section 80TTB may benefit from the old regime. Run the numbers for your specific case.

NRI FD taxation differs significantly from resident taxation:

• NRE FDs: Interest is completely tax-free in India. No TDS is deducted. Fully repatriable. However, the interest may be taxable in your country of residence.
• NRO FDs: Interest is taxable in India. TDS is deducted at 30% + 4% cess = 31.2% (no surcharge unless interest exceeds ₹50 lakh). This applies even if your total income is below the basic exemption limit.
• FCNR: Interest is tax-free in India, like NRE.

DTAA benefit: India has Double Taxation Avoidance Agreements with 90+ countries. If your country of residence has a DTAA with India, you can claim a lower TDS rate on NRO interest (typically 10–15% instead of 30%) by submitting a Tax Residency Certificate (TRC) and Form 10F to the bank before the start of the financial year.

Repatriation: NRE principal and interest are fully repatriable. NRO repatriation is capped at USD 1 million per financial year after paying applicable taxes — file Form 15CA/15CB through a CA for NRO repatriation.

No. This page is strictly a rate comparison and filtering tool for educational purposes. VilfinTV is not a bank, deposit intermediary, or investment advisor. We do not accept deposits, process transactions, hold your money, or provide personalised financial advice.

We are not affiliated with any bank listed here. Some links in the “Best Brokers & Apps” section are referral links that may earn VilfinTV a fee at no extra cost to you — they are not endorsements. Always verify rates on the bank’s official website and consult a qualified financial advisor before making deposit decisions.