Fixed Deposit Interest Rates 2021: Best FD Interest Rate
FD INTEREST RATE INDIA

Fixed Deposit Interest Rates 2021: Best FD Interest Rate

Last updated – 10 May 2021

Fixed deposits are the most popular investment but not the best investment because of low interest rates. However you can invest in FDs for a short term goal to save money for an upcoming expense and earn interest on that money.

Let’s discuss a few important things about FDs –

  • You can save income tax through the tax-saving fixed deposits under 80C. They have a fixed tenure of 5 years with a maximum investment limit of Rs 1,50,000.
  • If your interest income exceeds Rs 10,000 per bank in a financial year, the bank deducts 10% TDS on the interest earned. 
  • The banks charge a fee for premature mature withdrawal that varies from bank to bank.

It’s time to get into the depth of different bank’s FD interest rates. 

Best Highest Fixed Deposit Interest Rates 2021

Let’s compare the top 11 banks/companies in India that allow you save more money with higher FD interest rates. If you check the table below none of the commercial bank is in the top-3 positions because a very few commercial banks offer you decent FD interest rates.

I have curate below the list of top 11 highest FD interest rates paying banks/companies.

BankInterest Rate Individual
(1 Yr)
Interest Rate Senior Citizen 
(1Yr)
Ujjivan Small Finance Bank6.50%7.00%
Bajaj Finserv5.98%6.22%
AU Small Finance Bank5.25%5.35%
Yes bank6.00%6.50%
IDFC First Bank5.50%6.00%
Bandhan Bank5.75%6.50%
RBL Bank6.25%6.75%
Indian bank5.00%5.50%
Axis Bank5.10%5.75%

Best Highest Fixed Deposit Interest Rates on Tax Saver FDs

I am providing you details of top 5 banks who are giving the highest interest rates on Tax Saver FDs. These are as below.

#1. Yes bank 

Yes bank is the highest interest paying bank on its 5-years Tax saver FD. You can invest a maximum of Rs. 1.50 lakh and enjoy tax benefits. 

Let’s check the FD interest rate on Yes bank tax saver FDs.

  • For Individual – 6.75%
  • For Senior citizen – 7.50%

#2. IDFC First Bank 

IDFC First Bank also offers tax savings benefits on its 5-years Tax saver FD. Maximum investment is restricted to Rs. 1.50 lakh per year. 

Let’s check the FD interest rate on IDFC bank tax saver FDs.

  • For Individual – 5.75%
  • For Senior citizen – 6.25%

#3. IDBI Bank 

IDBI Bank also offers tax saver FD up to Rs. 1.50 lakh investment per year. DBS offers better interest rates to senior citizens.

Let’s check the FD interest rate on DBS bank tax saver FDs.

  • For Individual – 5.90%
  • For Senior citizen – 6.40%

#4. ICICI bank 

ICICI bank is paying a good return with tax savings benefits on its 5-years Tax saver FD. You can invest a maximum of Rs. 1.50 lakh. 

Let’s check the FD interest rate on ICICI tax saver FDs.

  • For Individual – 5.35%
  • For Senior citizen – 5.85%

 #5. Karur Vysya Bank 

KVB is another bank in the bandwagon. Let’s check the FD interest rate on Karur Vysya bank tax saver FDs.

  • For Individual – 6.00%
  • For Senior citizen – 6.00%

Check out Latest savings bank account interest rate

Fixed Deposit Interest Rate Comparison 2021

You can compare FD interest rates of all the banks so that you can easily take an informed decision while selecting a bank for fixed deposit investment. 

Here you would see, the private banks are paying better FD interest rates than public sector banks.

BankInterest Rate RegularInterest Rate Senior Citizen
State Bank of India2.90% – 5.40%3.40% – 5.90%
Yes bank3.50% – 6.75%4.00% – 7.50%
Bandhan Bank3.00% – 5.75%3.75% – 6.50%
HDFC Bank2.50% – 5.50%3.00% – 6.25%
ICICI Bank2.50% – 5.50%3.00% – 6.30%
Axis Bank2.50% – 5.75%2.50% – 6.50%
Indian bank2.90% – 5.15%3.40% – 5.65%
Karur Vysya Bank3.50% – 6.00%3.50% – 6.15%
Indian Overseas3.40% – 5.25%3.90% – 6.00%
Federal Bank2.50% – 5.50%3.00% – 6.00%
Andhra Bank3.00% – 5.40%3.00% – 5.40%
PNB3.00% – 5.25%3.50% – 5.75%
Canara Bank2.95% – 5.50%2.95% – 6.00%
Bank of Baroda2.80% – 5.25%3.30% – 6.25%
DBS Bank2.50% – 5.50%2.50% – 5.50%
IDFC First Bank2.75% – 6.00%3.25% – 6.50%
RBL Bank3.25% – 6.60%3.75% – 7.10%
Ujjivan Small Finance Bank3.05% – 6.75%3.55% – 7.25%
Au Small Finance Bank3.50% – 6.50%4.84% – 6.66%
Bajaj Finserv5.98% – 7.00%6.22% – 7.25%

You would like to checkLatest PPF investment interest rates

Banks FD Interest Rates in India 

Let’s discuss top 20 banks FD interest rates in India.

#1. Yes Bank FD Interest Rates 2021

The first position is acquired by Yes bank who pays higher FD interest rates than other commercial banks .Yes bank pay as high as 7.50% return to an individual while 7.90% interest to a senior citizen.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 to 14 days3.50%4.00%
15 to 45 days3.75%4.25%
46 to 90 days4.25%4.75%
3 months to < 6 months4.75%5.25%
6 months to < 9 months5.25%5.75%
9 months to < 1 Year5.50%6.00%
1 years < 2 years6.00%6.50%
2 years < 3 years6.25%6.75%
3 Years to < 5 years6.50%7.25%
5 Years to <= 10 years6.75%7.50%

#2. Ujjivan Small Finance Bank FD Interest Rates 2021

You can enjoy high-interest rates with Ujjivan Small Finance bank. Yes bank is one of the highest FD interest paying small finance banks in India.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 Days to 29 Days3.05%3.55%
30 Days to 89 Days4.05%4.55%
90 Days to 179 Days4.80%5.30%
180 Days to 364 Days5.20%5.70%
1 Year to 2 Years6.50%7.00%
2 Years and 1 Day to 3 years6.75%7.25%
3 Years and 1 Day to 5 Years6.75%7.25%
5 Years and 1 Day to 10 Years5.80%6.30%

#3. RBL Bank Bank FD Interest Rates 2021

You will enjoy high rates of FD interest while having a fixed deposit in RBL Bank. They pay as high as 6.60% interest for a (5 years +1 day) term deposit.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 days to 14 days3.25%3.75%
15 days to 45 days4.00%4.50%
46 days to 90 days4.25%4.75%
91 days to 180 days4.75%5.25%
181 days to 240 days5.25%5.75%
241 days to 364 days5.50%6.00%
12 months to less than 24 months6.25%6.75%
24 months to less than 36 months6.25%6.75%
36 months to less than 60 months6.40%6.90%
60 months to 60 months 1 day6.60%7.10%
60 months 2 days to less than 120 months6.00%6.50%
120 months to 240 months6.00%6.50%
Tax Savings Fixed Deposit (60 months)6.60%7.10%

#4. Au Small Finance Bank FD Interest Rates 2021

Another small finance bank that offers high interest on FDs is Au Small Finance Bank.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 Days to 1 Month 15 Days3.50%
1 Month 16 Days to 3 Months4.00%
3 Months 1 Day to 6 Months4.75%4.84%
6 Months 1 Day to 12 Months5.25%5.35%
12 Months 1 Day to 15 Months6.35%6.50%
15 Months 1 Day to 18 Months6.25%6.40%
18 Months 1 Day to 24 Months6.25%6.40%
24 Months 1 Day to 36 Months6.50%6.66%
36 Months 1 Day to 45 Months6.25%6.40%
45 Months 1 Day to 60 Months6.25%6.40%
60 Months 1 Day to 120 Months6.50%6.66%

#5. IDFC First Bank FD Interest Rates 2021

IDFC First bank is among the higher interest paying banks in India. You can check the IDFC fixed deposit interest slabs in the table below.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 Days to 14 Days2.753.25
15 Days to 29 Days3.003.50
30 Days to 45 Days3.504.00
46 Days to 90 Days4.004.50
91 Days to 180 Days4.505.00
181 days to less than 1 year5.255.75
1 year to 2 years5.506.00
2 years 1 day to 3 years5.756.25
3 years 1 day to 5 years6.006.50
5 years 1 day to 10 years5.756.25
Tax saver (5 years)5.756.25

Also readNational saving certificate interest rate

#6. DBS Bank FD Interest Rates 2021

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days & up to 60 days2.502.50
61 days & up to 180 days2.752.75
181 days & up to 269 days3.003.00
270 days to less than 1 year3.503.50
1 year to 375 days4.254.25
376 days to less than 2 years4.504.50
2 years & less than 3 years4.554.55
3 years & less than 4 years5.505.50
4 years & less than 5 years5.505.50
5 years & above5.505.50

#7. SBI FD Interest Rates 2021

The largest bank of India has now introduced interest rate up to 5.4% on fixed deposit of 5 years and up to 10 years

However, senior citizens will get 6.2% on the tenure.

Let’s check their SBI interest rates on fixed deposits for the different time periods.


Public
Regular CitizenSenior citizen
7 days to 45 days2.9%3.4%
46 days to 179 days3.9%4.4%
180 days to 210 days4.4%4.9%
211 days to less than 1 year4.4%4.9%
1 year to less than 2 years5.0%5.5%
2 years to less than 3 years5.1%5.6%
3 years to less than 5 years5.3%5.8%
5 years and up to 10 years5.4%6.2%

Check out how banks calculate interest rate

#8. HDFC Bank FD Interest Rates 2021

HDFC bank offers flexibility to start a fixed deposit right from your home with the help of netbanking. HDFC bank also provides good returns on FD that varies on the duration of FD. 

Let’s have a look at different HDFC fixed deposit interest rates.

DurationInterest Rate Regular
(%ge)
Senior Citizen Rates
(%ge)
7 – 14 days2.503.00
15 – 29 days2.503.00
30 – 45 days3.003.50
46 – 60 days3.003.50
61 – 90 days3.003.50
91 days – 6 months3.504.00
6 mnths 1 days – 9 mnths4.404.90
9 mnths 1 day < 1 Year4.404.90
1 Year4.905.40
1 year 1 day – 2 years4.905.40
2 years 1 day – 3 years5.155.65
3 year 1 day- 5 years5.305.80
5 years 1 day – 10 years5.506.25

#9. ICICI Bank FD Interest Rates 2021

ICICI bank always stays ahead in adopting world-class technology. ICICI  also offers better FD interest rates along with tax saver FDs to enjoy good returns along with tax savings.

DurationInterest Rate Regular Senior Citizen
7 days to 14 days2.50%3.00%
15 days to 29 days2.50%3.00%
30 days to 45 days3.00%3.50%
46 days to 60 days3.00%3.50%
61 days to 90 days3.00%3.50%
91 days to 120 days3.50%4.00%
121 days to 184 days3.50%4.00%
185 days to 210 days4.40%4.90%
211 days to 270 days4.40%4.90%
271 days to 289 days4.40%4.90%
290 days to less than 1 year4.40%4.90%
1 year to 389 days4.90%5.40%
390 days to < 18 months4.90%5.40%
18 months days to 2 years5.00%5.50%
2 years 1 day to 3 years5.15%5.65%
3 years 1 day to 5 years5.35%5.85%
5 years 1 day to 10 years5.50%6.30%
Tax Saver5.35%5.85%

#10. Axis Bank FD Interest Rates 2021

Axis bank offers fixed deposits with different time duration ranging from minimum 7 days up to 10 years. Axis bank  also offers better FD interest rates than its counterparts. 

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens (%ge)
7 days to 14 days2.502.50
15 days to 29 days2.502.50
30 days to 60 days3.003.00
61 days to 89 days3.003.00
90 days to 179 days3.503.50
180 days to 355 days4.404.65
1 year 5 days to 1 year 11 days5.155.80
1 year to less than 15 months5.105.75
15 months to less than 18 months5.205.85
18 months to less than 2 years5.255.90
2 years to 5 years 5.405.90
5 years to 10 years5.756.50

#11. PNB FD Interest Rates 2021

Punjab National Bank has become the second largest public sector bank in India. PNB has a wider network with deep outreach in sub-urban and rural areas. 

PNB offers amazing returns on FD interest rates for individuals as well as senior citizens.

DurationInterest Rate Regular
(%ge)
Interest Rate for Senior Citizen
(%ge)
7 to 14 days3.003.50
15 to 29days3.003.50
30 to 45 days3.003.50
46 to 90 days3.253.75
91 to 179 days4.004.50
180 days to 270 Days4.404.90
271 days to less than 1 year4.505.00
1 year5.105.60
above 1 year & upto 2 years5.105.60
above 2 year & upto 3 years5.105.60
above 3 year & upto 5 years5.255.75
above 5 years & upto 10 years5.255.75

#12. Indian Bank FD Interest Rates 2021

Indian bank has become the 7th largest public sector bank in India after a merger with Allahabad bank. Indian bank offers the best FD interest rates for lower time period like 7 days, 15 days or 1 month. 

But you also get one of the best FD interest rates if you increase the investment period.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 29 days2.903.40
30 days to 45 days2.903.40
46 days to 90 days3.253.75
91 days to 180 days3.954.45
181 days to less than 1 year4.404.90
1 year5.005.50
1 year to less than 2 years5.105.60
2 years to less than 3 years5.105.60
3 years to less than 5 years5.255.75
5 years5.255.75
Above 5 years to 10 years5.156.00

#13. Canara Bank FD Interest Rates 2021

Canara bank offers one of the lowest rates on the fixed deposits.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 45 days2.952.95
46 days to 90 days3.903.90
91 days to 179 days4.004.00
180 days to less than 1 Year4.454.95
1 year only5.205.70
Above 1 year to less than 2 years5.205.70
2 years & above to less than 3 years5.405.90
3 years & above to less than 5 years5.506.00
5 years & above to 10 Years5.506.00

#14. Bank of Baroda FD Interest Rates 2021

You can check out different interest rates on fixed deposits that Bank of Baroda offers to their customers. 

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 45 days2.803.30
46 days to 180 days3.704.20
180 days to less than 1 year4.404.90
1 year to less than 2 years5.005.50
2 years to less than 3 years5.105.60
3 years to less than 5 years5.255.85
5 years up to 10 years5.256.25

#15. Karur Vysya Bank FD Interest Rates 2021

Karur Vysya Bank is more beneficial to senior citizens for better returns on fixed deposits above 270 days. Here’s the comparison of KVB fixed deposit interest rates.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 29 days3.503.50
30 days to 45 days3.753.75
46 days to 90 days3.753.75
91 days to 120 days4.004.00
121 days to less than 270 days4.754.75
271 days to less than 1 year5.006.25
1 year to less than 2 years5.506.00
2 years to less than 3 years5.506.00
3 years to less than 5 years6.256.15
5 years onwards5.75
Tax saver6.006.00

#16. Indian Overseas Bank FD Interest Rates 2021

IOB offers interest rates in 3 categories –

  • Individual person below 60 years age
  • Senior citizen of 60 years age but below 80 years age
  • Super senior citizen above 80 years age

IOB provides additional benefits to the senior and super senior citizens. 

DurationInterest Rates Regular
(%ge)
Interest Rates for Senior Citizens
(Above 60 years, below 80 years)
(%ge)
Interest Rates for Senior Citizens 
(Above 80 years)
(%ge)
7 to 45 days3.403.904.15
46 to 90 days3.904.404.65
91 to 269 days4.404.905.15
270 days to < 1 year4.905.405.65
1 year to < 2 years(except 444 days)5.205.705.95
444 days5.255.756.00
2 yrs to < 3 yrs5.255.756.00
3 yrs and above5.255.756.00

#17. Bandhan Bank FD Interest Rates 2021

Bandhan bank is among those a few banks that offer above 5% FD interest to an individual and above 6% FD interest to a senior citizen.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 30 days3.003.75
31 days to less than 3 months3.504.25
3 months to less than 6 months3.504.25
6 months to less than 1 year5.256.00
1 year to less than 18 months5.756.50
18 months to less than 2 years5.756.50
2 years to less than 3 years5.756.50
3 years to less than 5 years5.506.25
5 years onwards5.506.25

#18. IDBI Bank FD Interest Rates 2021

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7-14 days3.103.60
15-30 days4.004.50
31-45 days4.254.75
46- 60 days5.005.50
61-90 days5.005.50
91-6 months5.005.50
6 months 1 day to 270 days5.255.75
271 days upto< 1 year5.506.00
1 year5.856.35
> 1 year – 2 years5.756.25
>2 years to < 3 years5.806.30
3 years to < 5years5.756.25
5 years5.906.40
> 5 years – 7 years5.806.30
>7 years – 10 years5.806.30
>10 years – 20 years*5.506.00
Tax Saver 5 years5.906.40

#19. Federal Bank FD Interest Rates 2021

DurationInterest Rate Regular
(%ge)
Senior Citizen
(%ge)
7 days to 29 days2.503.00
30 days to 45 days2.753.25
46 days to 90 days3.003.50
91 days to 180 days3.754.25
181 days to 270 days4.004.50
271 days to less than 1 year4.404.90
1 year to less than 16 months5.105.60
16 Months5.506.00
Above 16 months to less than 2 years5.105.60
2 years to less than 5 years5.355.85
5 years and above5.506.00

#20. Andhra Bank FD Interest Rates 2021

Andhra Bank offer similar interest rates on FD to both regular citizens as well as senior citizens.

Deposit TenureInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 to 45 Days3.003.00
46 to 90 Days3.753.75
91 to 120 Days4.254.25
121 to 180 Days4.304.30
181 Days < 1 Year4.504.50
1 Year5.255.25
>1 Year to 3 Years5.255.25
>3 Years to 5 Years5.305.30
>5 Years to 10 Years5.405.40

Post Office FD Interest Rates 2021

Indian post office offers better FD interest rates than some public sector banks.  You can start a fixed deposit account in your nearest post office with a minimum amount of Rs. 1,000.

Here’s the slab of fixed deposit interest rates as per the duration of investment. 

DurationInterest Rates
1yr.A/c5.5%
2yr.A/c5.5%
3yr.A/c5.5​%
5yr.A/c6.7​ %

Post office pays a fixed 7.4% interest rate to senior citizens with a lock-in period of 5 years. Senior citizen also get tax exempt up to Rs 50,000 under Section 80TTB on the interest earned.

FD Interest Rates Calculator

Here’s the formula for calculating FD interest rate.

M=P(1+r/n)^n*t

Where

M – maturity amount 

P – principal amount

r – rate of interest

t – number of years

n – compounded interest frequency

Let’s understand this with an example. 

You have Rs. 1,00,000 in a Fixed Deposit for a time period of 1 year at an interest rate of 8%, which is compounded annually. 

Here’s the calculation of 1 year FD  where n =4 (interest compounded quarterly)

M = 100000*{[1+(0.08/4)]^(4*1)}

M = 100000* {(1.02)^4}

M = 100000* 1.08243

M = 108243

Hence, interest earned in 1 year would be – Rs. 8,243

Final Words

If you want to earn higher returns then you should invest in other high returns investment options like mutual funds or stock investment. As the fixed deposit interest rate is declining. 

Invest only in FD if you are saving for short term and want to save your capital from short term market fluctuations. 

If you have any questions regarding fixed deposits, do let me know in the comments.

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