Comparing Fixed Deposit Interest Rates: A Study of Top Banks and NBFCs in India

Top Indian banks offer their own interest rates on fixed deposits. Their rates are based on the tenure and deposit amount And the type of scheme you have chosen. Some banks may provide the highest fixed deposit interest rates for senior citizens but offer tax-saving advantages on their FDs.

This is why we recommend comparing the rates and features of different banks with a fixed deposit calculator before investing in an FD. Aside from the liquidity and risk factors, investors must consider inflation and inflationary risks when investing.

Any individual eager to own or steady income can consider Investing in a fixed deposit scheme or FD. It is a very popular low-risk investment opportunity in India.Several banks and financial institutions offer varying interest rates on their fixed deposit schemes.

The Reserve Bank of India, however, determines those rates. Here we have done a short analysis of some of the top banks’ FD options and the highest fixed deposit interest rates connected to them. 

State Bank of India (SBI):

State Bank of India offers interest rates for fixed deposits that range from 2.9% to 5.4%. SBI is India’s largest bank and can offer very competitive rates. The tenure varies from seven days to 4-5 days with an interest rate of about 2.9%, While the tenure of 5 to 10 years comes with an interest rate of about 5.4%. In some cases, SBI might even offer a range of 3.4% to 6.2%for senior citizens, In addition to the 50 basis points.  

HDFC Bank:

Fixed deposit interest rates at HDFC Bank range from 2.5% to 5.5%. A regular fixed deposit with a tenure of 7 days to 29 days has an interest rate of 2.5%, whereas a fixed deposit with a tenure of 5 years to 10 years has an interest rate of 5.5%. There are 75 basis points on fixed deposits for senior citizens, with interest rates ranging from 3.25% to 6.25%.

ICICI Bank:

In India, ICICI Bank offers fixed deposit interest rates ranging from 2.5% to 5.5%. Regular fixed deposits with a tenure of 7 to 14 days are offered at 2.5%; fixed deposits with a tenure of 5 to 10 years are offered at 5.5%. Senior citizens are offered an additional 80 bps on fixed deposits, with interest rates ranging from 3.3% to 6.3%.

Axis Bank:

Axis Bank offers fixed deposit interest rates between 2.5% and 5.5% in the private sector. A regular fixed deposit with a tenure of 7 days to 29 days carries an interest rate of 2.5%, while a fixed deposit with a tenure of 5 years to 10 years carries an interest rate of 5.5%. In addition, senior citizens are offered an additional 50 basis points on fixed deposits, with the highest fixed deposit interest rates ranging from 3% to 6%.

Kotak Mahindra Bank:

In addition, Kotak Mahindra Bank offers fixed deposit interest rates between 2.5% and 5.6%. For 7-day and 14-day regular fixed deposits, interest rates are 2.5%, and for 5-10-year fixed deposits, interest rates are 5.6%. Kotak Mahindra Bank also offers additional 50 basis points on fixed deposits for senior citizens. The interest rates offered by these banks can fluctuate based on factors such as deposit amount, tenure, and type of customer (regular or senior).

Factors that determine fixed deposit interest rates:

Many factors determine the interest rate on fixed deposits, including inflation, market demand and supply of credit, and RBI policies. The level of inflation has a significant impact on fixed deposit interest rates.  

Because of this, FDs have traditionally been the preferred investment option for risk-averse investors. Fixed deposits are the safest type of investment offered by Bajaj Finserv, a reputable financial institution. It is a low-risk investment option that offers 6%–8% interest on deposits, and you can check this with a fixed deposit calculator. 

The Income Tax Act, Section 80C, allows depositors to deduct their deposits from their taxable income. Calculate your FD interest using an FD calculator if you are unsure how to do so. The lower returns of FDs make them less attractive to investors than other strategies, such as debt funds.