Which banks are best for FD?

Personal Finance

Although there are multiple investment options like mutual funds, government bonds, and many others, they all come with a few inherent risks. As a result, most Indians still prefer to invest in fixed deposit schemes that give them decent returns without any risk of losing money. 

However, it would be best if you worked with the best banks for FD to get the best returns. In this article, we will show you a list of Indian banks that offers the best FD schemes in this country. Let’s dive in.

A Glance at the Banks with the Best Fixed Deposit Rates

One of the most critical factors in determining the best bank for FD is to look at the bank’s FD interest rates. Here’s a table of banks and their current interest rates for both regular people and senior citizens:

Bank NameFD Interest RatesSenior Citizen FD Interest RatesTenure of FD Account
AXIS Bank3.50% – 6.10% per annum3.50% – 6.85% per annum7 days – 10 years
Bank of Baroda3% – 5.65% per annum3.50% – 6.65% per annum7 days – 10 years
Bandhan Bank3% – 7.50% per annum3.75% – 8% per annum7 days – 10 years
HDFC Bank3% – 5.50% per annum3.50% – 6.25% per annum33 – 99 months
Canara Bank3.25% – 7% per annum3.25% – 7.50% per annum15 days – 10 years
ICICI Bank3% – 6% per annum3.50% – 6.60% per annum7 days – 10 years
Punjab National Bank3% – 5.75% per annum3.50% – 6.25% per annum1 – 10 years
Kotak Mahindra Bank2.50% – 5.25% per annum3% – 5.75% per annum7 days – 10 years
Union Bank3% – 6.70% per annum3.50% – 7.20% per annum7 days – 10 years
State Bank of India3% – 5.85% per annum3.50% – 6.65% per annum7 days – 10 years

Which are the Best Banks to Open an FD?

Now, let’s look at the five best banks for FD and what makes them an excellent choice for starting a fixed deposit with them.


AXIS bank is one of the most popular Indian banking and financial service company, and its headquarter is located in the city of Mumbai, Maharashtra. It holds a large share of the Indian banking sector and is the third-largest private bank in India.

AXIS bank offers multiple fixed deposit schemes with different tenure and interest rates. This bank provides its customers with one of the highest fixed deposit interest rates, allowing them to earn more money on their deposited amount.

Each fixed deposit scheme requires you to deposit a minimum amount of money indicated in their catalogue and website. And you won’t be able to withdraw your money until the fixed deposit account reaches maturity. Still, thanks to the generous interest rates and secure investment options, AXIS bank is known as one of the best banks for FD in India.

Bank of Baroda

Bank of Baroda is a public-sector bank, and most of its shares are owned by the government of India. This bank offers multiple financial services, including Treasury, Retail banking, Corporate banking, and more.

Its banking services offer savings, current, fixed deposit accounts, and a few more to its regular and business customers. Bank of Baroda allows you to open a fixed deposit account with minimal effort and doesn’t require much paperwork.  

Senior citizens can get up to a 6.65% per annum interest rate on their fixed deposit, depending on the FD scheme. Its hassle-free and straightforward banking services make it one of the best banks for FD in this country.

Bandhan Bank

India’s 8th largest bank by market capitalization, Bandhan, is a public sector bank that formally commenced its banking operations in 2015. Apart from public banking, this bank also offers many other financial services, including, Corporate banking, Treasury, and retail banking.

Bandhan Bank has many fixed deposit schemes that fulfil anyone’s FD investment needs. Its Standard Fixed Deposit scheme allows you to open an FD with an amount as low as Rs. 1,000. Meanwhile, it also offers the Premium Fixed Deposit scheme with a minimum deposit requirement of Rs. 2 crores.

Most of its fixed deposits have monthly or quarterly interest payouts, allowing you to make partial withdrawals. Bandhan bank also enables you to get loans against your fixed deposit. All these features make it one of the best banks for FD.

Canara Bank

Canara bank offers tax saver FD schemes that allow you to receive tax benefits on your fixed deposit. However, they do come with a minimum lock-in period of 5 years. You can’t touch the money during these five years to receive the tax benefits. 

Canara bank offers excellent interest rates on its fixed deposit schemes, which can go up to 7.50% per year, depending on your chosen scheme. You will receive an interest deposit on your FD once every month or quarter. Undoubtedly, Canara bank is one of India’s best banks for FD investments.


HDFC bank allows you to open a fixed deposit account with an amount as low as Rs. 100, while the maximum deposit amount has no limit. They also offer tax-saving FD schemes with up to 5.50% per year interest rates for regular people and up to 6.25% per year interest rates.

These FDs come with a 5-year lock-in period, and the bank deposits the interest earned twice yearly. If you’re looking for the best banks for tax-saver FD, HDFC bank is a fine choice.


If you want a risk-free and secure investment option that offers decent returns, the fixed deposit is the way to go. You can open a fixed deposit account with any banking institution in India. To help you get the best FD deal possible, we have shared a list of banks with great fixed deposit schemes with high-interest rates and several other features like tax benefits. 

Evaluate your options carefully to find the best bank for FD. Are you worried about your immediate personal finance after depositing considerable money in FD? Check out the personal loan offers from Piramal Finance today!