Highest Interest Rate on Bank Fixed Deposits (FD) -May 2017

Highest Interest Rate on Bank Fixed Deposits - May 2017

Highest Interest Rate on Bank Fixed Deposits – May 2017

The post lists down the rate of interest on Bank fixed deposits as of May 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:

  • Axis Bank, Bandhan Bank, Bank of India, Catholic Syrian Bank, J&K Bank, Kotak Mahindra Bank and Yes Bank have reduced their FD rates as compared to last month.
  • 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 on fixed deposit is offered by Deutsche Bank ( 5 Years) at 8.00%.

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 7.25% .

Bank Description Interest Rate
The Ratnakar Bank 241 days to 364 days 7.25%
Karnataka Bank 180 days 7.10%
The Ratnakar Bank 181 days to 240 days 7.00%
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%
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% – 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 Ratnakar Bank (24 months to less than 36 months) at 7.65%.

Bank Description Interest Rate
The Ratnakar Bank 24 months to less than 36 months 7.65%
Bandhan Bank 1 Year 7.50%
The Ratnakar Bank 12 months to less than 24 months 7.50%
IDFC Bank 366 days 7.50%
Repco Bank Repco Mahila (18 Months, Exclusively for Women) 7.35%
Repco Bank 1 Year & Above to 2 years 7.25%
IDFC Bank 367 – 540 days 7.25%
Standard Charted Bank 1 year – 390 days 7.25%
Indus Ind Bank 1 Years to below 1 Years 2 Months 7.15%
Yes Bank 18 Months 8 Days to 18 Months 18 Days 7.15%
Axis Bank 14 months < 15 months 7.10%
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%
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 6.75% – 6.90%
ICICI Bank Private Bank Benchmark 6.90% – 7.00%
Post Office FD (1 year) Post Office 6.90%
Post Office FD (2 years) Post Office 7.00%

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 8.00%

Bank Description Interest Rate
Deutsche Bank 5 Years 8.00%
The Ratnakar Bank 36 months to less than 240 months 7.50%
Deutsche Bank 4 years to 5 Years 7.25%
IDFC Bank 541 – 731 days 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 36 Months 10 Days to 36 Months 20 Days 7.20%
Indus Ind Bank 2 years to below 2 years 6 Months 7.15%
Yes Bank 1 Years to <= 10 years 7.10%
State Bank of India Government Bank Benchmark 6.25%
ICICI Bank Private Bank Benchmark 6.75%
Post Office FD (2 years) Post Office 7.00%
Post Office FD (3 years) Post Office 7.20%
Post Office FD (5 years) Post Office 7.70%


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 7.50%.

Bank Description Interest Rate
The Ratnakar Bank 36 months to less than 240 months 7.50%
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%
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%
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
The Ratnakar Bank 36 months to less than 240 months 7.50%
IDBI Bank 10 Years to 20 Years (non-cumulative) 6.00%


Source:
Bank Websites                                          Last Updated: May 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

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 6.90% 6.75% 6.75% 6.50% 6.50% 6.50%
Andhra Bank 7.00% 7.00% 6.50% 6.50% 6.50% 6.50%
Axis Bank 7.00% 7.10% 6.75% 6.75% 6.75% 6.75%
Bandhan Bank 7.50% 7.25% 6.90% 6.90% 6.90% 6.50%
Bank of Baroda 6.90% 6.90% 6.90% 6.75% 6.75% 6.50%
Bank of India 6.90% 6.85% 6.85% 6.70% 6.70% 6.70%
Bank of Maharashtra 6.50% 6.25% 6.25% 6.00% 6.00% 6.00%
Canara Bank 6.90% 6.90% 6.90% 6.90% 6.90% 6.90%
Catholic Syrian Bank 6.50% 6.50% 6.75% 6.50% 6.50% 6.50%
Central Bank of India 6.60% 6.60% 6.50% 6.50% 6.50% 6.50%
Citibank 5.25% 5.25% 5.75% NA NA NA
City Union Bank 7.10% 6.85% 6.85% 6.85% 6.85% 6.70%
Corporation Bank 6.75% 6.75% 6.75% 6.65% 6.65% 6.65%
DCB Bank 7.10% 7.20% 7.25% 7.25% 7.25% 7.20%
Dena Bank 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Deutsche Bank 7.00% 7.00% 7.00% 7.25% 8.00% NA
Dhanalakshmi Bank 6.75% 6.50% 6.50% 6.50% 6.50% 6.50%
Federal Bank 6.70% 6.80% 6.50% 6.50% 6.50% 6.50%
HDFC Bank 6.95% 6.25% 6.00% 6.00% 6.00% 6.00%
ICICI Bank 6.90% 7.00% 6.75% 6.75% 6.75% 6.50%
IDBI Bank 6.40% 6.40% 6.00% 6.00% 6.00% 6.00%
IDFC Bank 6.90% 6.90% 6.75% 6.75% 6.75% 6.75%
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 7.15% 7.15% 6.75% 6.75% 6.75% 6.75%
J&K Bank 6.75% 6.75% 6.75% 6.75% 6.75% 6.75%
Karnataka Bank 6.75% 6.75% 6.50% 6.50% 6.50% 6.50%
Karur Vysya Bank 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Kotak Mahindra Bank 6.75% 6.50% 6.50% 6.25% 6.25% 6.00%
Lakshmi Vilas Bank 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Oriental Bank of Commerce 7.00% 6.75% 6.75% 6.50% 6.50% 6.75%
Post Office Term Deposit 6.90% 7.00% 7.20% NA 7.70% NA
Punjab and Sind Bank 7.10% 7.10% 7.00% 7.00% 7.00% 7.00%
Punjab National Bank 7.00% 6.90% 6.90% 6.90% 6.90% 6.70%
Repco Bank 7.25% 7.25% 7.00% 7.00% 7.00% NA
South Indian Bank 6.75% 6.75% 6.50% 6.50% 6.50% 6.50%
Standard Charted Bank 7.00% 7.00% 7.00% 7.00% 7.00% NA
State Bank of India 6.90% 6.75% 6.25% 6.25% 6.25% 6.25%
Syndicate Bank 6.80% 6.80% 6.80% 6.80% 6.80% 6.80%
Tamilnad Mercantile Bank Ltd 6.90% 7.00% 7.00% 6.90% 6.90% 6.90%
The Ratnakar Bank 7.50% 7.65% 7.50% 7.50% 7.50% 7.50%
UCO Bank 6.75% 6.75% 6.75% 6.75% 6.75% 6.50%
Union Bank of India 7.00% 7.00% 6.80% 6.80% 6.80% 6.80%
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 7.10% 7.15% 7.20% 7.10% 7.10% 7.10%

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?

Tagged with 

186 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) -May 2017

  1. Fixed Deposit rates are falling and will soon be below inflation.. what can we do to protect our savings ?

  2. Hi Amit,
    currently there is news that within some days interest rates on FD and saving account are going to be reduced at higher rate.
    I want to know whether this is realy going to happen, or just a rumour.

    • There are always speculations and rumors about future interest rates. Unfortunately most experts are not able to predict it right every time. So we should not worry much on these lines!

  3. V.G. kulkarni says:

    I have rs.4 lakh present value with today’s nav ulip: matured now. Shall continue with ulip ?

  4. md gouse mohiddin says:

    As want for saving A/C %……

  5. Hi Amit,

    I have got 5 lac rs to invest. I want to invest for 6-8 months. What are the best option which gives me better returns.

  6. Dear Amit
    I have a corpus of 70 lakhs as my life savings & I need a monthly income from it to live my life with family, what would be the safest yet best instrument(s) to park my money in? kindly give me a detailed guide as to how should I go abt it.
    thanks a lot for your valuable advise.
    Nishanth

  7. Krishnaswamy says:

    REPCO bank is offering the highest rate as 8.75% on Fixed Deposits to Sr. Citizens

  8. S.Mukherjee. says:

    Hi Mr.Amit K,
    I am from Kolkata and wish to invest in Tamilnad Power Finance. How safe is it to invest with this co.? Are interest payments being made on a regular basis? I want your opinion on this so please advice.

  9. chandrashekar says:

    how much rate of interest for senior citizens on fd?

  10. Rajat Monga says:

    Hello Amit, very informative article. Great work. I need to ask a suggestion from you about investment. I have a pretty handsome amount in hand and want to invest shortly. So should I go to the traditional options like FD or maybe to Peer 2 peer lending. I am really in a dilemma, please let me know about your viewpoints.

    • For short term you should bank on FD especially if you are looking for guaranteed risk free return. I personally have never invested in P2P and hence have no experience, but remember its unregulated and can be quite risky. Also in case of default you’ll have to go legal which is not a good thing in India.

      You can also look to invest in Arbitrage Mutual Funds in case you are in 30% tax bracket and investment horizon is less than 1 year.

      • Rajat Monga says:

        Thanks Amit.
        My relative invested in one such P2P platform called http://www.loankuber.com/. And he earned pretty good in a very short time. So I was also thinking of investing.
        And thank you so much for your reply .

        • It would be great if you share your/your relatives experience on such P2P platforms. Will help remove inhibitions and get on the ground feel.

  11. Sujit Barge says:

    Hello sir,
    I have to make FD or FDs of about Rs. 5.5 lakhs.
    What are the best options for a single or more than one FDs.
    Thanks

    • Pick the bank offering highest interest rate from the table above. You can go for single FD if you are sure that you would not break it until maturity. If you are doubtful, make multiple FDs as breaking one would not impact others.

  12. RAJARSHI DAS says:

    I want to invest in Fixed Deposits of Tamil Nadu power finance & infrastructure development corporation ltd. Is the company regular in payment of the periodic interests & principal repayment.

  13. Marshal Leander says:

    Hello Sir, I am from Chennai, I am looking for a bank that has high interest rate. I am planning to deposit Rs 20000. Need your suggestions.

  14. Hi amit great to read your views. Do you give individual suggestion. If yes what is your contact information

    • I am not certified financial planner so it might not be right to give individual advise. But if you have any particular question I can answer it to best of my knowledge.

  15. syed maqsood says:

    Amitji,
    Hi,

    What is your advise about foreign bank “Deutsche Bank” I want make fixed deposits around 20-Lakhs
    Plz advise your comments???

  16. Hi Amit,

    Thank you so much for your valuable answers it’s really worth reading them.

    My question is I would like to invest 2 lack’s for my daughter(for her needs) in long term for 16 years, I have seen other questions which says equity mutual funds or balanced mutual funds will give better interest rates. Can you please give me the best mutual funds company’s / Bank names with high security for long term. Thank you.

    • You have rightfully decided to invest in equity/balanced fund for goal which is 16 years away. You can browse through Mint50 list and pick accordingly.

      • Thank you Amit, How much is the TDS taken for this kind of funds.

        • Equity Mutual Funds are tax free if redeemed after 1 year. Balanced funds with less than 75% equity investment are treated as debt fund for taxation. If invested for more than 3 years, the gains are long term capital gains. Its taxed at 20% after taking indexation benefit. There is no TDS on mutual funds. You can read more about Tax on Mutual Funds here.

Your Opinion Matters - Please Share below...