Highest Interest Rate on Bank Fixed Deposits (FD) – February 2017

Highest Interest Rate on Bank Fixed Deposits - February 2017

Highest Interest Rate on Bank Fixed Deposits – February 2017

The post lists down the rate of interest on Bank fixed deposits as of February 1, 2017.

You might want to bookmark this page as the FD interest rates would be updated every month. Would help you in better decision making.

Fixed Deposit Highlights:

  • Post demonetization on November 8, all banks have received lot of deposits leading to deposit rate cuts by almost all banks.
  • Most banks offer FDs for tenure of 7 Days to 10 Years.
  • The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
  • For very short Term Deposits the interest rate is similar to that of Savings Account and so you should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
  • Most banks compound interest quarterly
  • Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is generally 0.5% to 1% more than that offered to FD.
  • TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 10,000 in financial year per bank
  • There might be penalty for pre-mature withdrawal of Fixed Deposits

Also Read: Highest interest rate on savings account in India?

Fixed Deposit Interest Rates:

The highest interest rate is offered by Bandhan Bank at 8.00% for 1 year Fixed Deposit.

For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 5 slabs:

  • FD for Less than 1 Year
  • FD for 1 to 2 years
  • FD for 2 to 5 Years
  • FD for 5 to 10 years
  • FD for More than 10 years

Also Read: 7 High Rated Companies Offering more than Bank Fixed Deposits

We show the highest interest rates on fixed deposits for the above duration buckets. We have also compared the best interest rates on offer by that being offered by State Bank of India (SBI), ICICI Bank and Post Offices.

Click for Best Tax Saving FDs u/s 80C

Interest Rate for FD of Less than 1 Year:

The highest interest rate is offered by The Ratnakar Bank (241 days to 364 days) at 7.50% .

Bank Description Interest Rate
The Ratnakar Bank 241 days to 364 days 7.50%
Karnataka Bank 180 days 7.15%
The Ratnakar Bank 181 days to 240 days 7.15%
Bandhan Bank 6 months to less than 1 Year 7.00%
City Union Bank 181 days to 364 days 7.00%
Dena Bank 271 days to 364 days 7.00%
IDFC Bank 181 – 365 days 7.00%
Repco Bank 90 days – 364 days 7.00%
State Bank of Mysore 211 days to less than 1 year 7.00%
State Bank of Patiala 211 days to less than 1 year 7.00%
State Bank of Travancore 211 days to less than 1 year 7.00%
The Ratnakar Bank 91 days to 180 days 7.00%
Union Bank of India 180 day to less than 1 Year 7.00%
Yes Bank 9 months to < 1 Year 7.00%
State Bank of India Government Bank Benchmark 5.50% – 7.00%
ICICI Bank Private Bank Benchmark 4.00% – 6.50%

 

Also Read: 21 Hidden Charges in Saving Bank Account

Interest Rate for Fixed Deposit of 1 – 2 Years:

The highest interest rate is offered by Bandhan Bank (1 Year) at 8.00%.

Bank Description Interest Rate
Bandhan Bank 1 Year 8.00%
The Ratnakar Bank 24 months to less than 36 months 7.85%
The Ratnakar Bank 12 months to less than 24 months 7.75%
Repco Bank Repco Mahila (18 Months, Exclusively for Women) 7.60%
IDFC Bank 366 days 7.50%
Repco Bank 1 Year & Above 2 years 7.50%
IDFC Bank 367 – 540 days 7.25%
Standard Charted Bank 1 year – 390 days 7.25%
State Bank of Bikaner and Jaipur 1 Year to 455 Days 7.25%
Indus Ind Bank 1 Years to below 1 Years 2 Months 7.15%
City Union Bank 1 year 7.10%
DCB Bank 18 months to less than 24 months 7.10%
Punjab and Sind Bank 1 Year – 2 Year 7.10%
State Bank of Bikaner and Jaipur 456 Days to less than 2 Years 7.10%
Yes Bank 1 Years to <= 10 years 7.10%
Indus Ind Bank 1 Years 2 Months to below 2 Years 7.05%
State Bank of India Government Bank Benchmark 6.90% – 6.95%
ICICI Bank Private Bank Benchmark 6.90% – 7.00%
Post Office FD (1 year) Post Office 7.00%
Post Office FD (2 years) Post Office 7.10%

Click for Best Interest Rate on Recurring Deposits

Interest Rate for Fixed Deposit of 2 – 5 Years

The highest interest rate is offered by Deutsche Bank (5 Years) at 7.75%

Bank Description Interest Rate
Deutsche Bank 5 Years 7.75%
The Ratnakar Bank 36 months to less than 240 months 7.70%
Bandhan Bank Above 1Year to less than 3 years 7.50%
Dena Bank 2 years to less than 5 years 7.25%
Deutsche Bank 4 years to 5 Years 7.25%
IDFC Bank 541 – 731 days 7.25%
Repco Bank Above 2 years – 5 Years 7.25%
State Bank of Bikaner and Jaipur 2 years to less than 3 years 7.25%
DCB Bank 24 months to 36 months 7.20%
IDFC Bank 732 – 1095 days 7.20%
IDFC Bank 3 years 1days – 10 years 7.20%
Yes Bank 1 Years to <= 10 years 7.10%
State Bank of India Government Bank Benchmark 6.50% – 6.85%
ICICI Bank Private Bank Benchmark 6.75%
Post Office FD (2 years) Post Office 7.10%
Post Office FD (3 years) Post Office 7.30%
Post Office FD (5 years) Post Office 7.80%

 

Also Read: Where to Park Money for Very Short Term [less than 6 Months]?

Interest Rate for Fixed Deposit of 5 – 10 Years

The highest interest rate is offered by The Ratnakar Bank (36 months to less than 240 months) at 7.70%.

Bank Description Interest Rate
The Ratnakar Bank 36 months to less than 240 months 7.70%
DCB Bank More than 60 months to 120 months 7.20%
IDFC Bank 3 years 1days – 10 years 7.20%
Yes Bank 1 Years to <= 10 years 7.10%
Bandhan Bank 3 years to less than 10 years 7.00%
Dena Bank 5 years to less than 10 years 7.00%
Karur Vysya Bank 3 years and above 7.00%
Lakshmi Vilas Bank 5 years to 10 years 7.00%
Punjab and Sind Bank >5 Years – 10 Years 7.00%
Tamilnad Mercantile Bank Ltd Above 3 Years 7.00%
State Bank of India Government Bank Benchmark 6.50%
ICICI Bank Private Bank Benchmark 6.50%

 

Interest Rate for Fixed Deposit of more than 10 Years

The Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years.

Bank Description Interest Rate
The Ratnakar Bank 36 months to less than 240 months 7.70%
State Bank of Patiala 18 years (for girl child only) 7.00%
IDBI Bank 5 Years to 20 Years 6.75%


Source:
Bank Websites                                          Last Updated: February 1, 2017

Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.

Also Read: 13 Investments to Generate Regular Income

Helpful Posts on FD:

It would be helpful for you to look at following posts before you choose your fixed deposits:

  1. How to increase bank deposit insurance through Joint accounts?
  2. How to fill Form 15G/H to avoid TDS deduction?
  3. How Safe is Your Fixed Deposit in Bank?
  4. How you loose Money in Fixed Deposits?

173 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – February 2017

  1. Hi Amit,

    I checked IDBI Bank interest rate but didn’t find FD for 366 days.

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