Fixed Deposit, most commonly known as FD, is a financial instrument where you can deposit a fixed amount for a specific term ranging from a minimum 7 days to a maximum of 10 years in order to get better interest rates compared to the Savings Account.
The rate of interest though better than savings account may vary as per the amount, term and from bank to bank. After maturity of the Fixed Deposit, the investor would receive the total amount deposited along with a decent interest.
Benefits of Fixed Deposit:
- The main benefit of opening a Fixed Deposit account is to earn a higher rate of interest on your savings. The rate of interest on FD is always higher than the rate of interest you get in a savings account.
- You can open multiple accounts for different Fixed Deposits.
- At the time of maturity, you can return the Fixed Deposit receipt and withdraw the money or you can also renew it for further period as per your convenience.
- You can get loans against your FDs from the bank.
- As per the Traditional Scheme, you can opt to credit the interest from your FD account directly into your savings account on a monthly or quarterly basis. If you opt for a reinvestment scheme, then the interest will be compounded to the principal amount on a quarterly basis.
- Get the benefit of tax exemption on your savings under Section 80C of Income Tax Act, 1961.
Current FD rates in Public sector Banks:
|Maturity Time||Institution||Interest rate Below 1 Crore||Full details|
|1 Year||6.50%||Allahabad Bank|
|1 Year||6.50%||Andhra Bank|
|1 Year||6.45%||Bank of Baroda|
|1 Year||6.60%||Bank of India|
|1 Year||6.50%||Bank of Maharashtra (BOM)|
|1 Year||6.50%||Canara Bank|
|1 Year||6.60%||Central Bank of India (CBI)|
|1 Year||6.60%||Corporation Bank|
|1 Year||6.50%||Dena Bank|
|1 Year||6.75%||IDBI Bank|
|1 Year||6.50%||Indian Bank|
|1 Year||6.75%||Indian Overseas Bank (IOB)|
|1 Year||6.60%||Oriental Bank of Commerce (OBC)|
|1 Year||6.50%||Punjab & Sind Bank|
|1 Year||6.60%||Punjab national bank|
|1 Year||6.25%||State bank of India (SBI)|
|1 Year||6.25%||State Bank of Patiala (SBP)|
|1 Year||6.25%||State bank of Bikaner and Jaipur (SBBJ)|
|1 Year||6.25%||State Bank of Hyderabad (SBH)|
|1 Year||6.25%||State Bank of Travancore (SBT)|
|1 Year||6.25%||State Bank of Mysore (SBM)|
|1 Year||6.50%||Syndicate Bank|
|1 Year||6.50%||UCO Bank|
|1 Year||6.75%||Union Bank of India|
|1 Year||6.10%||United Bank of India (UBI)|
|1 Year||6.50%||Vijaya Bank|
Table Updated: 27 January, 2018
Our Conclusion after comparing one year fixed deposit data of Public sector Banks:
- Currently majority of Public sector bank offering 6.50% interest rate for 1 year fixed Deposit.
- Current highest interest rate is 6.75% by IDBI Bank, Indian Overseas Bank and Union Bank of India.
- Current lowest interest rate is 6.10% by United Bank of India.
Private Sector Banks:
|Maturity Time||Institution||Interest Rate Below 1 Crore||Full details|
|1 Year||7.00%||Axis Bank|
|1 Year||6.50%||Catholic Syrian Bank|
|1 Year||7.10%||City Union Bank|
|1 Year||6.85%||Development Credit Bank|
|1 Year||6.60%||Dhanlaxmi Bank|
|1 Year||6.70%||Federal bank|
|1 Year||6.75%||HDFC Bank|
|1 Year||6.75%||ICICI Bank|
|1 Year||6.85%||IndusInd Bank|
|1 Year||6.70%||Kotak Mahindra Bank|
|1 Year||6.75%||Karur Vysya Bank|
|1 Year||7.00%||Lakshmi Vilas Bank|
|1 Year||7.10%||RBL Bank|
|1 Year||7.00%||TMB Bank|
|1 Year||6.60%||Yes Bank|
Table Updated: 27 January, 2018
Our Conclusion after comparing one year fixed deposit data of Private sector Banks:
- Current highest interest rate is 7.10% by RBL Bank
- Current lowest interest rate is 6.50% by Catholic Syrian Bank.
Other Govt Institutes:
|Maturity Time||Institution||Interest rate < 1 cr||Full details|
|1 Year||6.80%||Indian Post Office|
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Also let us know if you don’t find your bank in the above list.