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

The post lists down the rate of interest on Bank fixed deposits as of October 4, 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:

  • 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: How SWP in Debt Funds generate higher returns than FD

Fixed Deposit Interest Rates:

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

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.

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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 7.10% .

Bank Description Interest Rate
Ratnakar Bank 241 days to 364 days 7.10%
Bandhan Bank 6 months to less than 1 year 7.00%
City Union Bank 181 days to 364 days 7.00%
IDFC Bank 181 – 365 days 7.00%
Ratnakar Bank 181 days to 240 days 7.00%
Repco Bank 90 days – 364 days 7.00%
Karnataka Bank 180 days 6.90%
Karur Vysya Bank 91 Days to 180 Days 6.90%
Union Bank of India 10 Month to 14 Month 6.75%
Yes Bank 3 months to < 10 Years 6.75%
City Union Bank 91 days to 180 days 6.75%
IDFC Bank 91 – 180 days 6.75%
Karur Vysya Bank 181 Days to less than 1 year 6.75%
Lakshmi Vilas Bank 181 – 364 days 6.75%
Ratnakar Bank 46 days to 180 days 6.75%
Tamilnad Mercantile Bank 180 days to less than 12 months 6.75%
DCB Bank 6 months to less than 12 months 6.65%
State Bank of India Government Bank Benchmark 5.50% – 6.50%
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 IDFC Bank (366 days).

Bank Description Interest Rate
IDFC Bank 366 days 7.50%
Repco Bank Repco Mahila (18 Months, Exclusively for Women) 7.35%
Bandhan Bank 1 year to less than 2 years 7.25%
IDFC Bank 361 – 1095 days 7.25%
Lakshmi Vilas Bank 500 Days 7.25%
Repco Bank 1 Year & Above – 2 years 7.25%
Ratnakar Bank 12 months to less than 24 months 7.20%
City Union Bank 1 year 7.10%
Karur Vysya Bank 2 years and above 7.00%
Lakshmi Vilas Bank 1 year to 999 days 7.00%
Tamilnad Mercantile Bank 1 Year to less than 3 Years 7.00%
Yes Bank 18 Months 8 Days to 18 Months 18 Days 6.95%
DCB Bank 18 months to less than 24 months 6.90%
Deutsche Bank 1 Year to 2 Years 6.90%
DCB Bank 12 months to less than 18 months 6.85%
Indus Ind Bank 1 Years to below 1 Years 2 Months 6.85%
Axis Bank 1 Year < 18 months 6.75%
HDFC Bank 1 year 1 day – 1 year 3 days 6.75%
Indus Ind Bank 1 Years 2 Months to below 2 Years 6.75%
J&K Bank 1 year to less than 2 years 6.75%
Karnataka Bank 1 year to 2 years 6.75%
Standard Charted Bank 1 Year – 375 days 6.75%
Union Bank of India 10 Month to 14 Month 6.75%
Yes Bank 3 months to < 10 Years 6.75%
State Bank of India Government Bank Benchmark 6.50%
ICICI Bank Private Bank Benchmark 6.75%
Post Office FD (1 year) Post Office 6.80%
Post Office FD (2 years) Post Office 6.90%

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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%
Lakshmi Vilas Bank 1000 Days 7.50%
Ratnakar Bank 24 months to less than 36 months 7.30%
IDFC Bank 361 – 1095 days 7.25%
IDFC Bank 3 years 1days – 10 years 7.20%
Ratnakar Bank 36 months to less than 240 months 7.20%
DCB Bank 36 months to 60 months 7.10%
DCB Bank 24 months to less than 36 months 7.00%
Karur Vysya Bank 2 years and above 7.00%
Lakshmi Vilas Bank 1 year to 999 days 7.00%
Lakshmi Vilas Bank 1001 Days to 10 years 7.00%
Repco Bank Above 2 years – 5 Years 7.00%
Tamilnad Mercantile Bank 1 Year to less than 3 Years 7.00%
Yes Bank 36 Months 10 Days to 36 Months 20 Days 7.00%
Bandhan Bank 2 years to less than 5 years 6.90%
Tamilnad Mercantile Bank 3 Years & above 6.90%
City Union Bank Above 1 year & upto 5 years 6.85%
Federal Bank 1111 Days 6.80%
Catholic Syrian Bank 3 Years 6.75%
Indus Ind Bank 2 years to below 2 years 6 Months 6.75%
J&K Bank 1 year to less than 3 years 6.75%
Yes Bank 3 months to < 10 Years 6.75%
Punjab and Sind Bank 1 Year to 10 Years 6.70%
Corporation Bank 1 year to less than 3 years 6.60%
Syndicate Bank Above 2 year & up to 5 years 6.60%
State Bank of India Government Bank Benchmark 6.25%
ICICI Bank Private Bank Benchmark 6.50%
Post Office FD (2 years) Post Office 6.90%
Post Office FD (3 years) Post Office 7.10%
Post Office FD (5 years) Post Office 7.60%


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) and IDFC Bank (3 years 1 days – 10 years) at 7.20%.

Bank Description Interest Rate
IDFC Bank 3 years 1 days – 10 years 7.20%
Ratnakar Bank 36 months to less than 240 months 7.20%
DCB Bank More than 60 months to 120 months 7.00%
Karur Vysya Bank 2 years and above 7.00%
Lakshmi Vilas Bank 1001 Days to 10 years 7.00%
Tamilnad Mercantile Bank 3 Years & above 6.90%
Yes Bank 3 months to < 10 Years 6.75%
City Union Bank Above 5 years & upto 10 years 6.70%
Punjab and Sind Bank 1 Year to 10 Years 6.70%
State Bank of India Government Bank Benchmark 6.25%
ICICI Bank Private Bank Benchmark 6.50%

Also Read: How to fill Form 15G/H to avoid TDS deduction?

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
IDBI Bank 2 Years to 20 Years 6.00%
Ratnakar Bank 36 months to less than 240 months 7.20%


Source:
Bank Websites                                          Last Updated: October 4, 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

Fixed Deposit Interest Rate across all Banks

Until last month we used to provide only the top Fixed Deposit Rates but with several request from readers we have added a summary of FD rates for all banks.

Banks 1 Years 2 Years 3 Years 4 Years 5 Years 5+ Years
Allahabad Bank 6.60% 6.50% 6.50% 6.50% 6.50% 6.50%
Andhra Bank 6.75% 6.50% 6.50% 6.25% 6.25% 6.25%
Axis Bank 6.75% 6.25% 6.25% 6.25% 6.25% 6.25%
Bandhan Bank 7.25% 7.25% 6.90% 6.90% 6.90% 6.50%
Bank of Baroda 6.60% 6.65% 6.50% 6.50% 6.50% 6.50%
Bank of India 6.60% 6.50% 6.50% 6.30% 6.30% 6.25%
Bank of Maharashtra 6.50% 6.25% 6.25% 6.00% 6.00% 6.00%
Canara Bank 6.50% 6.30% 6.20% 6.20% 6.20% 6.00%
Catholic Syrian Bank 6.50% 6.50% 6.75% 6.50% 6.50% 6.50%
Central Bank of India 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
Citibank 5.00% 5.00% 5.25% NA NA NA
City Union Bank 7.10% 6.85% 6.85% 6.85% 6.85% 6.70%
Corporation Bank 6.60% 6.60% 6.60% 6.50% 6.50% 6.50%
DCB Bank 6.65% 6.90% 7.10% 7.10% 7.10% 7.00%
Dena Bank 6.50% 6.50% 6.25% 6.25% 6.30% 6.30%
Deutsche Bank 6.90% 6.90% 6.90% 6.90% 7.75% NA
Dhanalakshmi Bank 6.60% 6.60% 6.50% 6.50% 6.50% 6.50%
Federal Bank 6.70% 6.60% 6.50% 6.50% 6.50% 6.50%
HDFC Bank 6.75% 6.25% 6.00% 6.00% 6.00% 6.00%
ICICI Bank 6.75% 6.75% 6.50% 6.50% 6.50% 6.50%
IDBI Bank 6.75% 6.50% 6.25% 6.25% 6.25% 6.00%
IDFC Bank 7.00% 7.25% 7.20% 7.20% 7.20% 7.20%
Indian Bank 6.50% 6.25% 6.25% 6.00% 6.00% 6.00%
Indian Overseas Bank 6.75% 6.50% 6.25% 6.00% 6.00% 6.00%
Indus Ind Bank 6.85% 6.75% 6.50% 6.50% 6.50% 6.50%
J&K Bank 6.75% 6.75% 6.50% 6.25% 6.25% 6.25%
Karnataka Bank 6.75% 6.50% 6.50% 6.50% 6.50% 6.50%
Karur Vysya Bank 6.75% 7.00% 7.00% 7.00% 7.00% 7.00%
Kotak Mahindra Bank 6.50% 6.25% 6.00% 6.00% 6.00% 6.00%
Lakshmi Vilas Bank 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Oriental Bank of Commerce 6.60% 6.40% 6.40% 6.40% 6.40% 6.40%
Post Office 5 Year FD 6.80% 6.90% 7.10% NA 7.60% NA
Punjab and Sind Bank 6.70% 6.70% 6.70% 6.70% 6.70% 6.70%
Punjab National Bank 6.60% 6.50% 6.50% 6.25% 6.25% 6.25%
Ratnakar Bank 7.20% 7.30% 7.30% 7.20% 7.20% 7.20%
Repco Bank 7.25% 7.00% 7.00% 7.00% 7.00% NA
South Indian Bank 6.75% 6.50% 6.50% 6.50% 6.50% 6.50%
Standard Charted Bank 6.75% 6.50% 6.50% 6.50% 6.50% NA
State Bank of India 6.50% 6.50% 6.25% 6.25% 6.25% 6.25%
Syndicate Bank 6.50% 6.50% 6.60% 6.60% 6.60% 6.50%
Tamilnad Mercantile Bank 7.00% 7.00% 7.00% 6.90% 6.90% 6.90%
UCO Bank 6.50% 6.50% 6.40% 6.25% 6.25% 6.25%
Union Bank of India 6.75% 6.50% 6.50% 6.50% 6.50% 6.50%
United Bank of India 6.25% 6.00% 6.00% 6.00% 6.00% 6.00%
Vijaya Bank 6.50% 6.50% 6.50% 6.50% 6.50% 6.25%
Yes Bank 6.75% 6.75% 6.75% 6.75% 6.75% 6.75%


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 Safe is Your Fixed Deposit in Bank?
  3. How you loose Money in Fixed Deposits?

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216 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – October 2017

  1. hi sir i want to deposit 50000 rs fixed deposit in any bank for 5 years on my son’s name, which is the best one out of these sbi, andhra bank, corporation bank.. we have only these banks in our home town.. and one more thing is TDS applicable to this deposit..

  2. Respected sir.
    My inlaws had fixed deposit in a nationalised bank till dec 2015. At the rate of 9 %
    Now from January 2016 the interest is decreased to 7.8 %
    Now they are thinking to deposit in some cooperative bank. They are offering 10%interest
    But my question is how safe is our money in cooperative banks. Please suggest

    • Yes the interest rates are falling and this is major problem for people who depend on fixed deposit for their income. Co-operative banks offer higher interest rate but are riskier than normal public/private sector banks. You can limit the exposure to each person to Rs 1 lakh in each co-operative bank as it’s insured by deposit insurance. So if there are 2 people (A & B)on whose name FD can be done you can keep your exposure up to Rs 4 Lakhs – invest in A and B’s name individually. You can also invest in joint names – in once case A as the first holder and 2nd case B as first holder. All the 4 combinations are considered 4 different entities for deposit insurance.

      Also you should explore high-rated companies like DHFL, HDFC, ICICI Housing, PNB Housing, etc who offer higher interest rates than banks.

  3. how much safe FD & in case bank will layoff what will happen our deposit amount

    • All Government owned and big Private banks are safe. So you need not worry about their shutdown. There is risk in co-operative banks and every year few banks shut down. So you should be careful about them.

      Deposit up to Rs 1 Lakh (including interest) is insured and you’ll get it back after some formalities and wait. You can read more about Safety of your Fixed Deposits here.

  4. Dattatray Sonawane says:

    When I contacted Ratnakar Bank for opening FD after read your post. They told for opening saving bank account then only FD will be accepted. I already have 5 saving accounts. It’s difficult to maintain again 1 more SB a/c. Is it mandatory to have saving account for FD ?.

    • No its not mandatory to open savings account for opening fixed deposit. Banks generally insist on savings account as it makes transfer of money easier and repeated KYC can be avoided. I know people who opened Fixed Deposit in different banks without savings account.

      Also your approach of having limited number of savings account is correct as they are expensive to maintain!

    • Coincidently, I opened a FD at Ratnakar today itself. They asked me too about the savings account but I sternly refused. I said I already have one and only need to open FD. It is not compulsory. They opened the FD. I have realised one thing that the customer service and the staff sucks there, worse than many PSU Banks. Also, they are very very slow. But the interest rate is good and once FD is opened I don’t have to deal with them till I need the money. So it’s worth it.

  5. BANDHAN Bank 🏦 Recurring Deposit interest is 8.5%😎

  6. Hi Amit been looking at these fancy rate of interest but the hidden feature like compounded quaterly ,6 monthly etc etc makes these figures below what the banks promise except post office.Could you please elaborate

  7. Along with that kindly advice what are the best options of investment for NRI’s.

  8. How do you rate The Ratnakar Bank & DCB bank in terms of having 2 years FD with them as they are offering the highest return rates.

  9. Hi ,i want to invest rs 25 lakhs ,which i will needing after 18 months for education abroad for my daughter ,which is the best alternate

    • If you are in higher tax bracket, I would recommend Arbitrage Mutual Fund. This would give you tax free returns as the investment horizon is for more than 1 year. You can expect returns similar to bank fixed deposit but tax free. You can learn more about Arbitrage Mutual Fund here.

      In case you are in lower tax bracket then go for Bank fixed deposit.

  10. Santosh Narayanan says:

    Think you missed Central BANK of india 1-2 Years @ 8.0% , SBP @ 7.77 % 1-2 years

  11. ankita Rsthore says:

    Sir I m a government servant & want exemption from income tax ,,Fd income tax se rebate deti h kya,,,,, q

  12. Sir, may I beg to know that I want to make fixed Deposit for 10 years of Rs.12 Lacs on my minor son name who is now 10 years old, I want to get interest per month in order to educed him. May I know which bank gives highest amount of interest rate. Also if I have to pay Income Tax on the earned Interest. I am not a senior citizen. Can I make my wife as the custodian of that Deposit. What papers are required…

    • The highest interest rates offered by Banks as of today is in the table in the post above. You can open Fixed Deposit on the name of minor child (with you/wife as guardian) or go for joint account with him.

      If the FD amount is from your income, the interest received would be taxable in your hands even if you do FD in your wife/child name, as clubbing provision for taxation would apply here.

  13. Hi Amit,
    Thank you for posting the consolidated FD rates. It’s very helpful. I’m retired person and I’ve few queries please help me. I’ll get some lump sum amount of 30 Lakhs in coming months. I would like invest the amount in FD for monthly income.

    1. If I invest 30 Lakhs in a bank and as per interest rate 9% I’ll get 22,000 per month. I don’t have any other source of income and staying in rent house. Please let me know how TDS will be calculated if I’m taking a monthly payout.

    Thank you
    Kishore

    • Banks would deduct TDS if the annual interest income exceeds Rs 10,000. In your case it would come to Rs 2.64 Lakhs, so bank would deduct TDS @ of 10% of the interest received in case you give valid PAN number. If there is no PAN provided the TDS rate is 20%.

      Since you are senior citizen with income less than Rs 3 lakhs (income tax exemption limit), you can submit Form 15H to all the bank branches where you have FD and they would not deduct any TDS. Submit the Form 15H when you make the deposits and then at the start of every financial year. Also from October 1, 2015 you can submit this Form 15H online.

  14. I was referring RD of different banks and found that all banks offer more percentage for 1 or 2 years and then after percentage gets low, why is it so?

    • Your observation is right. The interest offered by banks depend on many factors. The banks have to balance their deposit and loans so the interest rate offered is in alignment to that. Also it depends on the way banks thinks that interest rates would move. If they feel the interest rate would be lower in 5 years, they would offer lower interest rate.

  15. Non-deposit of pending installments till maturity date, interest will be paid on daily products basis compounded half yearly. what does it means?

    • Sanjib, these wordings make no sense even to me. But with all my effort I think the bank wants to state that the interest would only be paid on deposits made and not on missed installments. If the installment is delayed then the interest would be paid only after the deposit was made for the missed payment.

  16. jasbiir singh says:

    i would like to enquire, if any indian bank do long term FD. e.g., 20 yrs on current interest rate ?

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