Investing funds to gain better returns is the need of the hour. Everyone today is looking for better investment opportunities that would yield better returns in a span of 1-5 years. However, there are many who also look for long term investments that would help them secure their child’s education, daughter’s marriage or even for personal retirement goals.
Among all the investment options available out there, Fixed Deposit schemes are considered highly reliable and trustworthy for decades as they promise assured returns at the end of the tenure. Being said that, one shouldn’t just blindly opt for a Fixed Deposit scheme at any bank. There are 100s of different banks out there in India and each bank offers a different rate of interest for their Fixed Deposit plans based on the tenure and sum invested.
Hence, it is highly important to research on all the banks and choose the best bank that offers the highest Fixed Deposit interest rates.
But, before we get on to the list of different banks with their FD interest rates, let’s know more about Fixed Deposit schemes.
Fixed Deposit Highlights:
- Tenure or Maturity offered by Banks in India for Fixed Deposits is between 7 Days to 10 Years.
- Banks such as IDBI Bank, State Bank of Patiala and The Ratnakar Bank offers Fixed Deposit schemes up to 20 years as well.
- Most Banks in India compound interest quarterly.
- Interest earned up to Rs. 10,000 per year in saving account is a 100% Tax free. Interest rates on short Term Deposits are similar to that of a savings account, so there’s nothing to worry about FD interest rates.
- If the interest income goes beyond Rs. 10,000 in a financial year per bank, then the bank will deduct the TDS (Tax Deducted at source) at the rate of 10%.
- Banks do offer Loan/Overdraft against the Fixed Deposit.
- Any premature withdrawal of Fixed Deposits may result in penalty incurred by the depositor.
Fixed Deposit Interest Rates 2018:
Currently, The Ratnakar Bank offers the highest interest rate on Fixed Deposit for a period of 1 Year at the rate of 7.10%.
However, Banks offer different interest rates on fixed deposits depending on the period of investment. Hence, one must check the interest rates for each bank based on the following time slots:
- FD for Less than 1 Year
- FD for 1 to 2 years
- FD for 2 to 5 Years
- FD for More than 5 years
Following are the tables for each time duration with the list of banks offering highest interest rates on Fixed Deposits. We have also included the No. 1 Bank in both Private and Government sector (ICICI Bank and State Bank of India respectively) to make it easier to choose the right bank for Fixed Deposit investments.
Best Fixed Deposit Interest Rates (Less Than 1 Year):
Winner – The Ratnakar Bank (Offers an interest rate of 6.85% for a Fixed Deposit term period of 241 days to 364 days.
| Name of the Bank | Fixed Deposit Term | Interest Rate | Source |
| The Ratnakar Bank | 241 days to 364 days | 6.85% | Know More |
| DCB Bank | 6 months to less than 12 months | 6.85% | Know More |
| State Bank of India | Government Bank Benchmark | 6.25% | Know More |
| ICICI Bank | Private Bank Benchmark | 6.75% | Know More |
Best Fixed Deposit Interest Rates (1 Year):
Winner – The Ratnakar Bank and City union bank (Offers an interest rate of 7.10% for a Fixed Deposit term period of 12 months to less than 24 months.
| Name of the Bank | Fixed Deposit Term | Interest Rate | Source |
| The Ratnakar Bank | 12 months to less than 24 months | 7.10% | Know More |
| DCB Bank | 18 months to less than 24 months | 7.00% | Know More |
| DCB Bank | 13 months to less than 18 months | 7.00% | Know More |
| DCB Bank | 12 months to less than 13 months | 6.85% | Know More |
| State Bank of Hyderabad | SBH Kuber-400 days | 6.25% | Know More |
| Catholic Syrian Bank | 400 Days | 6.50% | Know More |
| Lakshmi Vilas Bank | 1 year and above & less than 3 years | 7.00% | Know More |
| Tamilnad Mercantile Bank Ltd | 555 days | 7.00% | Know More |
| City Union Bank | 1 Year | 7.10% | Know More |
| IndusInd Bank | 1 year to below 1 years 2 months | 6.85% | Know More |
| J&K Bank | 1 year to less than 5 years | 7.00% | Know More |
| Karur Vysya Bank | 1 year and above | 7.00% | Know More |
| State Bank of Bikaner and Jaipur | 1 year and upto less than 3 years | 6.00% | Know More |
| State Bank of Hyderabad | 1 yr and upto 10 yrs | 6.00% | Know More |
| Tamilnad Mercantile Bank Ltd | 1 year to < 5 years | 7.00% | Know More |
| State Bank of India | Government Bank Benchmark | 6.00% | Know More |
| ICICI Bank | Private Bank Benchmark | 6.75% | Know More |
| Post Office FD (1 Year) | Post Office | 6.80% | Know More |
Best Fixed Deposit Interest Rates (2 – 5 Years):
Winner – Indian Post Office (Offers an interest rate of 7.60% for a Fixed Deposit term period of 24 months to less than 36 months.
| Name of the Bank | Fixed Deposit Term | Interest Rate | Source |
| The Ratnakar Bank | 24 months to less than 36 months | 7.10% | Know More |
| DCB Bank | 24 months to 60 months | 7.10% | Know More |
| Lakshmi Vilas Bank | 3 year and above & less than 5 years | 7.00% | Know More |
| Lakshmi Vilas Bank | 1 year and above & less than 3 years | 7.00% | Know More |
| J&K Bank | 1 year to less than 5 years | 7.00% | Know More |
| Karur Vysya Bank | 1 year and above | 6.75% | Know More |
| State Bank of Bikaner and Jaipur | 1 year and upto less than 3 years | 6.00% | Know More |
| State Bank of Hyderabad | 1 yr and upto 10 yrs | 6.00% | Know More |
| Tamilnad Mercantile Bank Ltd | 1 year to < 5 years | 7.00% | Know More |
| Yes Bank | 24 Months 12 Days to 24 Months 24 Days | 6.60% | Know More |
| State Bank of India | Government Bank Benchmark | 6.00% | Know More |
| ICICI Bank | Private Bank Benchmark | 6.75% | Know More |
| Post Office FD (2/3 years) | Post Office | 7.10% | Know More |
| Post Office FD (5 years) | Post Office | 7.60% | Know More |
Best Fixed Deposit Interest Rates (More than 5 Years):
Winner – The Ratnakar Bank (Offers an interest rate of 7.10% for a Fixed Deposit term period of 36 months to less than 120 months.
| Name of the Bank | Fixed Deposit Term | Interest Rate | Source |
| The Ratnakar Bank | 36 months to less than 120 months | 7.10% | Know More |
| The Ratnakar Bank | 120 months to 240 months | 7.10% | Know More |
| DCB Bank | More than 60 months to 120 months | 7.10% | Know More |
| Lakshmi Vilas Bank | 5 years and above | 7.00% | Know More |
| Tamilnad Mercantile Bank Ltd | 5 Years to 10 Years | 7.00% | Know More |
| Karur Vysya Bank | 1 year and above | 7.00% | Know More |
| State Bank of Hyderabad | 1 yr and upto 10 yrs | 6.00% | Know More |
| State Bank of India | Government Bank Benchmark | 6.00% | Know More |
| ICICI Bank | Private Bank Benchmark | 6.75% | Know More |
Source: Respective Bank’s Official Web Portals
Last Updated: 24 February, 2018
Disclaimer: The Fixed Deposit often fluctuate with each bank with respect to their own guidelines or the standards set by Reserve Bank of India. Hence, it is highly recommended to verify the interest rates with each bank before making investments in their Fixed Deposit schemes.
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