Which Bank Gives Highest Interest On FD

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Since May 2022, when the RBI began a pattern of quarterly increases to the repo rate, banks in India have increased their interest rates on fixed deposits (FDs). Since May, the RBI has increased the repo rate by 190 bps.

It’s no secret that fixed deposits are a go-to choice for many investors, especially those looking to play it safe with their money.

Several financial institutions now provide a return on FDs of greater than 7%. Even though India’s retail inflation hit a five-month high of 7.4% in September 2022, many Indians may still find earning over 7% on their fixed deposits enticing.

What is a fixed deposit?

A fixed deposit is a direct investment that needs a single deposit. You may put money in the bank’s core account for a predetermined time (tenure). During this time, interest will accrue on the deposit. You will receive your money back along with interest.

Table of banks giving the highest rate of interest on FDs and rates

The latest interest rates offered by top banks for tenures range from 7 days to 10 years as of December 2022.

Name of BankFor general citizens (p.a.)For senior citizens (p.a.)
IDBI Bank FD3.00% to 6.25%3.50% to 7.00%
HDFC Bank FD3.00% to 6.25%3.50% to 7.10%
ICICI Bank FD3.00% to 6.60%3.50% to 6.95%
State Bank of India FD3.00% to 6.10%3.50% to 6.90%
Kotak Mahindra Bank FD2.75% to 6.50%3.25% to 7.00%
Axis Bank FD3.50% to 6.50%3.50% to 7.25%
Canara Bank FD3.25% to 7.00%3.25% to 7.50%
Punjab National Bank FD3.50% to 7.00%4.00% to 7.50%
RBL Bank FD3.25% to 7.25%3.75% to 7.75%
IDFC First Bank FD3.50% to 7.25%4.00% to 7.75%
Bank of Baroda FD3.00% to 5.65%3.50% to 6.65%

Different banks’ lists and their interest in FD

  1. Rates of Return on Fixed Deposits Offered by SBI

The State Bank of India (SBI) is one of the country’s main public sector banks. SBI has set an increased interest rate for its employees and retirees. The interest rate will be 1% higher than the rate available to the general public. Those who are 65 or older and are residents of India will receive the staff interest rate of 1% in addition to the senior citizen interest rate of 0.5% from SBI.

The interest rates will apply to both new deposits and rollovers of accounts with terms that are about to end.

2. Interest Rates on Fixed Deposits at ICICI Bank

The fixed deposit earnings of elderly citizens at ICICI Bank increased by 0.5%. The ICICI Bank allows customers to choose between fixed deposits that allow withdrawals and those that do not. The interest on FD will not significantly increase if the depositor cannot access their money. There is a one-year bare minimum and a ten-year maximum on NRE deposits.

3. Axis Bank Interest Rates on Fixed Deposits

Axis Bank provides online and offline fixed deposit services. The interest rates vary depending on the loan’s term and principal balance. The bank offers an interest rate of 0.65% on deposits made by seniors, which is higher than the standard rate.

4. Yes Bank FD rates

On all deposit plans, Yes Bank provides excellent interest on FD.

The interest rate for a term of less than one year varies from 3.25% to 5.00%.

Interest on deposits with maturities of one to three years ranges from 5.75% to 6.25%.

The bank offers interest of 6.25% p.a. on deposits made into FD accounts with terms greater than 3 years.

On FD tenures, senior citizens are given an extra interest rate of up to 0.75%.

5. Citibank FD rates

For any FD held for a shorter time than a year, interest on the FD of 1.85% to 2.75% will be paid.

The maximum interest rate paid by Citibank is 3.50% per year for an investment term of 1,096 days.

The annual return rate will be 3.50% between 151 and 1,095 days.

Every older person will get an extra percentage of interest.

6. Punjab and Sind Bank Rates

Punjab and Sind Bank offer FDs with interest rates ranging from 3.00% to 5.40%.

The rate paid for deposits kept for less than a year ranges from 3.00% to 5.15%.

The yearly rate of return ranges from 5.15% to 5.40% for an investing duration of one to three years.

If the deposit is retained for a duration between 3 and 5 years, a rate of 5.40% p.a. on bank deposits is paid.

Note: The interest in FD for older persons is high. The bank applies several interest rates on deposits exceeding Rs 1 crore and below Rs 5 crore. The RBI’s monetary policy will update the interest rate regularly.

These are the main banks and their FD interest rates. Before investing your hard-earned cash in any financial asset, it is prudent to do research.

How to Pick a Good Fixed Deposit

The following are the considerations to make when selecting a fixed deposit:

  • Examine the FD interest rates offered by various banks.
  • Check the lender’s integrity by looking at the ICRA or CRISIL fixed deposit safety rating.
  • Select a fixed deposit type: cumulative or non-cumulative.
  • Pick a bank that provides friendly customer service and a simple FD opening process.

Final Words 

A fixed deposit is a safe investment, but it provides returns that are less than inflation. Before applying for an FD, gather as much information as possible about the process and the banks offering the highest rates of interest on FD. All the above-mentioned information will be a big help if you search for banks giving out the highest interest rate interest on FD.

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  1. Is FD a good way to spend money?

Fixed deposits are one of the best ways to put your money to work.

  1. How long does a fixed deposit have to be?

You can open a fixed deposit account for at least seven days.

  1. How much is the smallest amount you can put into an FD account?

Different banks have different minimum amounts. As little as Rs. 50 is possible.

  1. Can I receive interest on a fixed deposit every month?

Yes, you receive interest on your fixed deposit.

  1. Can I take money out of my Tax Saver Term Deposit before it’s due?

No, you can’t take money out of a tax-saving term deposit before the five years are up.