Highest Interest rate on fixed deposit (FD) by Banks – June 2016

Highest Interest rate fixed deposit

Do you know where you can get Highest Interest rate on Fixed deposit (FD)? Well, in this post I will list down the options to avail highest interest rate on fixed deposit (FD).

Traditionally a fixed deposit is one of the safest and most popular investment options in India. Imagine, you have got lump sum money which you want to invest and grow but don’t want to take any risk. You can simply take a fixed deposit and earn interest on deposited money. Fixed deposit options are available from 7 days to 10 years. The interest rate on the fixed deposit is decided based on the time period. By investing money in the fixed deposit you can get a benefit of moderate return along with liquidity.

Note – I will be updating this list of fixed deposit interest rate every month. You are requested to bookmark this page so that you can check fixed deposit interest rate at regular interval.

Features of Fixed Deposit

  • Fixed guaranteed return along with capital protection.
  • It is low-risk moderate return investment product.
  • You can take a loan against fixed deposit.
  • You can avail the facility of a credit card against fixed deposit.
  • Tax is applicable on interest earned. TDS is deducted at rate of 10%
  • You can submit Form 15G/15H to save tax on FD.
  • Premature withdrawal of fixed deposit leads to a penalty.

Types of Fixed Deposit

Regular FD – In regular FD you can invest one-time money. The time duration is fixed ranging from 7 days to 10 years. The interest rate under regular FD scheme is decided at the beginning.

Tax Saving FD – This type of FD allows you to save tax. However, this FD comes with a lock-in period of 5 years. You cannot withdraw fund from this FD before 5 years.

Recurring Deposit – Recurring Deposit is a special type of fixed deposit option where an investors needs to deposit money every month. The rate of interest offered is similar to that in fixed deposit.

What time duration I should select for Investment on fixed deposit?

Well, an answer to this question depends on your goal and requirement of money in future. However, it is advisable to place FD for the longer duration because for a longer duration you can get higher interest rates on FD.

Documents required for opening Fixed deposit

In order to open fixed deposit, you need following –

  • ID proof (PAN card, Passport, Aadhar Card)
  • Address proof (passport, telephone bill, utility bill)
  • PAN card

Fixed Deposit Interest Rates – May 2016

The Ratnakar Bank (RBL) is offering the highest interest rate on fixed deposit. RBL interest rate on FD is in the range of 8.5-8.75% for 1-3 years.

Fixed deposits are generally taken for the duration of 1 year, 2 years, 3 years or 5 years.

Highest Interest rate on fixed deposit (FD) 1 Year

Ratnakar Bank, Bandhan Bank and Bharat Bank are offering a highest interest rate on FD 8.25% for 1 year. All these banks are private sector banks.

Fixed Deposit Interest Rate – 1 Year
Bank Rate  Frequency
Ratnakar Bank 8.25% Quarterly
Bandhan Bank 8.25% Quarterly
 Oriental Bank of Commerce  7.75%  Quarterly
Lakshmi Vilas Bank 7.80% Monthly
IDBI Bank 7.75% Monthly
Tamilnad Mercantile Bank Ltd 7.30% Quarterly
Karnataka Bank 7.75% Monthly
Bank of Baroda 7.30% Quarterly
Indusind Bank 7.75% Quarterly
Karur Vysya Bank 7.75% Quarterly
Oriental Bank of Commerce 7.75% Quarterly
Bank of Maharashtra 7.60% Quarterly
Central Bank of India 7.50% Quarterly
Standard Chartered Bank 7.60% Quarterly
State Bank of Mysore 7.60% Quarterly

Highest Interest rate on fixed deposit (FD) 2 Year

Ratnakar Bank, Bandhan Bank, Bharat Bank and Lakshmi Vilas Bank are offering the highest interest rate on fixed deposit for 2 years. Ratanakar Bank -8.75%, Bharat Bank – 8.5%, Bandhan Bank – 8.25%, Lakshmi Vilas Bank – 7.9%.

Fixed Deposit Interest Rate – 2 Year
Bank  Rate Frequency
Ratnakar Bank 8.75% Quarterly
Bharat Bank 8.50% Quarterly
Bandhan Bank 8.25% Quarterly
Lakshmi Vilas Bank 7.90% Monthly
Karnataka Bank 7.75% Monthly
Tamilnad Mercantile Bank Ltd 7.70% Quarterly
Bank of Baroda 7.75% Quarterly
Karur Vysya Bank 7.75% Quarterly
Central Bank of India 7.50% Quarterly
South Indian Bank 7.55% Quarterly
Kotak Mahindra Bank 7.50% Quarterly
Federal Bank 7.50% Quarterly
IDBI Bank 7.50% Quarterly
State Bank of Hyderabad 7.50% Monthly

Highest Interest rate on fixed deposit (FD) 3 Year
Ratnakar Bank, Bandhan Bank, Bharat Bank and Lakshmi Vilas Bank are offering the highest interest rate on fixed deposit for 3 years. Ratanakar Bank – 8.5%, Bharat Bank – 8.5%, Bandhan Bank – 8 %, Lakshmi Vilas Bank – 7.9%.

Fixed Deposit Interest Rate – 3 Year
Ratnakar Bank 8.50% Quarterly
Bharat Bank 8.50% Quarterly
Bandhan Bank 8.00% Quarterly
Lakshmi Vilas Bank 7.90% Monthly
Gruh Finance Limited 8.00% Yearly
Tamilnad Mercantile Bank Ltd 7.70% Quarterly
Bank of Baroda 7.35% Quarterly
Karur Vysya Bank 7.75% Quarterly
South Indian Bank 7.55% Quarterly
Kotak Mahindra Bank 7.50% Monthly
Federal Bank 7.50% Monthly
IDBI Bank 7.50% Monthly
Karataka Bank 7.50% Monthly
HDFC Bank 7.50% Quarterly

Highest Interest rate on fixed deposit (FD) 5 Year

Ratnakar Bank, Bharat Bank and Gruh Finance Limited are offering the highest interest rate on fixed deposit for 5 years. Ratanakar Bank – 8.5%, Bharat Bank – 8.5%, Gruh Finance Limited – 8%.

Fixed Deposit Interest Rate – 5 Year
Ratnakar Bank 8.50% Quarterly
Bharat Bank 8.50% Quarterly
Gruh Finance Limited 8.00% Yearly
Lakshmi Vilas Bank 7.80% Monthly
Bandhan Bank 7.75% Quarterly
Tamilnad Mercantile Bank Ltd 7.70% Quarterly
Bank of Baroda 7.30% Quarterly
Karur Vysya Bank 7.75% Quarterly
IDBI Bank 7.40% Monthly
Karataka Bank 7.50% Monthly
HDFC Bank 7.50% Quarterly
Andhra Bank 7.50% Quarterly
Corporation Bank 7.50% Quarterly

Fixed Deposit Overall Comparison

fixed deposit interest rate

Over to you –

Fixed deposit (FD) is safest investment option and if you are risk adverse investor holding surplus money you should park your money in fixed deposit instead of keeping it in the saving bank account

Do you invest in Fixed Deposit?

Hope you liked Highest Interest rate on fixed deposit (FD). If you have any query about fixed deposit do post it in the comment section. I will be happy to answer the same.

Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 850+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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4 Comments

  1. Neeraj says:

    IDFC Bank is not in the list; any specific reason?

  2. Chandramouli says:

    is there any fund which gives capital appreciation as well gives monfhly dividends,
    in this which is the best……..

  3. Jalpesh Patel says:

    Hello Raviraj,
    It seems that Bharat bank in your list is a cooperative bank while others are not cooperative banks.
    I feel cooperative banks are not directly comparable with other banks as they are perceived to be risky.

    Also, you have not included Deutsche bank – a foreign bank with HIGHEST INTEREST RATE in your list.

    Thanks!
    Jalpesh Patel

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