FD Rates: Latest Fixed Deposit Interest Rates for General Citizens

For ages, fixed deposits have been considered a safe and reliable investment tool among citizens. Though the FD interest rates might not be on the higher side, this investment tool is quite safer, thereby enabling investors to park their money in a reliable avenue. If you are looking to invest your money in fixed deposits, you need to be aware of the latest FD interest rates being offered by different financial institutions.

So, here we have come up with a post that would highlight the FD rates in 2024 and let do a fixed deposit rates comparison for better decision-making.

What is a Fixed Deposit?

A fixed deposit refers to a type of investment offered by banks and NBFCs. In this type of investment, an investor deposits the money for a fixed period that will accrue interest at a certain rate. The investor gets the principal amount and the interest amount on maturity. The investors have the option to choose to get the interest monthly, quarterly, semi-annually, or annually given their needs.

How Does a Fixed Deposit Work?

When a person opens an FD Account, he or she needs to deposit a particular amount for a fixed period. The deposited amount should not be withdrawn before the maturity of the FD. This investment period can vary between 5 days and 10 years, given the preference of the investors.

The length of the investment and the amount placed determine the interest rate that is given on a fixed deposit. The interest rate and resulting interest generated increase with the length of the investment period. At the time of the FD maturity, the interest generated is either reinvested in the FD or credited to the investor’s savings account (the majority of banks demand that deposit holders maintain a savings account with them).

FD Interest Rate Calculation

The formula for calculating Simple Interest (SI) is “principal x rate of interest x period divided by 100” or (P x R x T/100).

For example, if you invest INR 20,000 at 8% p.a. for 5 years, the calculation of interest would be like this. Step 1: 20,000 x 8 x 5 = INR 8, 00,000.

FD Interest Rates 2024

At this point, the interest rates on fixed deposits in India range from 2.50% p.a. to 9.00% p.a. with investment tenures ranging from 7 to 10 years.  Here, it is important to note that NBFCs and small finance banks provide the highest fixed deposit rates. The fixed deposit rates in 2024 tend to have a big impact on an investor’s decision to choose a particular bank of NBFC for opening a fixed deposit.

Fixed Deposit Rates Comparison

For your reference, we have highlighted fixed deposit rates comparison below for public sector banks, private sector banks, and small finance banks. If you are looking for bank FD rates for today, you can refer to the following tables.

Public Sector Banks

Bank Name	Highest slab	1-year tenure	3-year tenure	5-year tenure
Bank of Baroda	7.25	6.85	7.15	6.5
Bank of India	7.3	6.8	6.5	6
Bank of Maharashtra	7.25	6.75	6.5	6.5
Canara Bank	7.25	6.85	6.8	6.7
Central Bank of India	7.45	6.85	6.75	6.5
Indian Bank	7.25	6.1	6.25	6.25
Indian Overseas Bank	7.3	6.9	6.5	6.5
Punjab & Sind Bank	7.3	6.3	6	6
Punjab National Bank	7.25	6.8	7	6.5
State Bank of India	7.25	6.8	6.75	6.5
UCO Bank	7.05	6.5	6.3	6.2
Union Bank of India	7.4	6.8	6.7	6.5

Private Sector Banks

Bank Name	Upper slab	1-year tenure	3-year tenure	5-year tenure
Axis Bank	7.2	6.7	7.1	7
Bandhan Bank	8	7.25	7.25	5.85
City Union Bank	7.25	7	6.5	6.25
CSB Bank	7.75	5	5.75	5.75
DBS Bank	7.5	7	6.5	6.5
DCB Bank	8.05	7.1	7.55	7.4
Dhanlaxmi Bank	7.25	6.75	6.5	7.25
Federal Bank	7.4	6.8	7	6.6
HDFC Bank	7.4	6.6	7	7
ICICI Bank	7.25	6.7	7	7
IDBI Bank	7.25	6.8	6.5	6.5
IDFC First Bank	7.75	6.5	7.25	7
IndusInd Bank	7.75	7.75	7.25	7.25
Jammu & Kashmir Bank	7	7	6.75	6.5
Karnataka Bank	7.25	7.1	6.5	6.5
Karur Vysya Bank	7.6	7	7	7
Kotak Mahindra Bank	7.4	7.1	7	6.2
Nainital Bank	7.05	6.7	6.25	5.75
RBL Bank	8.1	7.5	7.5	7.1
SBM Bank India	8.25	7.05	7.3	7.75
South Indian Bank	7.25	6.7	6.7	6
Tamilnad Mercantile Bank	7.5	7	6.5	6.5
Yes Bank	8	7.25	7.25	7.25

Small Finance Banks

Bank Name	Upper slab	1-year tenure	3-year tenure	5-year tenure
AU Small Finance Bank	8	7.25	7.5	7.25
Capital Small Finance Bank Limited	7.55	7.5	7.15	7.1
Equitas Small Finance Bank	8.5	8.2	8	7.25
ESAF Small Finance Bank	8.25	6	6.75	6.25
Jana Small Finance Bank	8.25	8.25	8.25	7.25
North East Small Finance Bank	9	7	9	6.25
Shivalik Small Finance Bank Limited	8.55	6	7.5	6.25
Suryoday Small Finance Bank	8.65	6.85	8.6	8.25
Ujjivan Small Finance Bank	8.25	8.25	7.2	7.2
Unity Small Finance Bank	9	7.85	8.15	8.15
Utkarsh Small Finance Bank	8.5	8	8.5	7.75

Factors Affecting Fixed Deposit Interest Rates

Fixed Deposits (FDs) are a great option if you’re seeking for a risk-free investment solution that offers fixed returns over a set duration. It’s critical to compare interest rates if you want to maximize your return on investment (FD). However, there is a noticeable variation in the FD interest rates offered by a few institutions when you compare them. Which factors are in charge of these variations? Let’s examine this:

1. Investment Tenure

You can select any term during the bank’s minimum and maximum tenure range when booking an FD.

The interest rate of the Fixed Deposit Account has a direct bearing on the FD tenure. Longer tenures typically result in higher FD rates offered by banks.

2. Invested Amount

The amount of interest you get on your investment is influenced by even the amount you deposit in your FD Account.

Banks typically offer different interest rates for different categories, such as FD sums smaller than INR 2 crore.

3. Renewals

Nowadays, the majority of reputable banks provide fixed deposit account renewal options through auto-renewal. To obtain a little higher interest rate, you might choose to have FD to-renewal enabled.

4. Your Age

The FD rates are also influenced by your age. The FD rates for senior citizens are greater than those for those under 60.

5. Economic Conditions

One of the most important elements influencing fixed deposit rates is the nation’s economic situation, which includes its monetary and fiscal policies.

For instance, increased inflation typically results in higher interest rates being provided on goods like bank FDs. If inflation is lower, on the other hand, the converse is true.

6. Repo Rate Fluctuations

In the event of a shortage, the RBI charges all commercial banks the repo rate when lending money to them. Thus, it has an immediate effect on banks and the interest rates they provide for retail loans, FDs, etc.

In a circumstance where the repo rates are rising, the FD rates are often higher; in contrast, if the RBI regularly lowers the repo rates, the rates are lower.

7. Demand & Supply Conditions

Changes in the country’s money supply and demand also affect the FD rate.

Interest rates on bank FDs rise in a rising economy because there is a greater demand for money. However, interest rates usually experience a decline if the money supply continuously exceeds demand.

FD Interest Rates for Senior Citizens

Senior citizens are known to get an extra fixed deposit interest rate of 0.50% p.a. from banks and nonbank financial institutions other than the FD interest rates given to regular depositors. A majority of banks give an additional interest rate of 0.20% to 0.50% over and above normal senior citizen FD rates under their special schemes and/or for certain tenures.

Difference Between FD Interest Rates and Savings Account Interest Rates

Customers can deposit and retrieve their funds with ease and security using a savings bank account, which also pays interest on the amount deposited. The interest rate on a savings account, however, is less than that of a fixed deposit.

Their functionality is one of the main causes of this rate discrepancy. A savings account is used to handle your daily financial requirements, but a fixed-rate deposit (FD) is a complete investment package. You can add to and take out of your funds from a savings account as needed. However, it is advised that you hold onto your FD for the full selected tenure.

The Conclusion

Lay down a proper fixed deposit plan by understanding your investment horizon and liquidity needs. Investors should look for interest pay-out choices, special interest plans, and extra services like secured credit cards, loans against FD, sweep-in and sweep-out facilities, etc. while making their decision. They should also evaluate the current FD interest rates offered by different banks.

Also read: Top 10 Stock Brokers in India

FAQs

Is there a maximum amount limit on fixed deposits?

There is no maximum investment limit in an FD.

What are the latest rules of FD?

According to the Income Tax Act of 1961, the interest income earned on your FD will levy tax. This implies that the interest from FDs will be included in your income and taxed in accordance with your overall income for the fiscal year.