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
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.
Jalpesh Patel
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
Chandramouli
is there any fund which gives capital appreciation as well gives monfhly dividends,
in this which is the best……..
Neeraj
IDFC Bank is not in the list; any specific reason?
Raviraj Parekh
No specific reason.I will try to include IDFC bank also.