What is Fixed Deposit (FD) Accounts | Top Banks FD Interest Rates in 2024

FD

Even though in this time we have several investment opportunities, fixed deposit remains one of the most popular and safest investment opportunities that is available to the hardworking citizens of India. What is a fixed deposit and what are the interest rates that banks are currently offering on these fixed deposits. Fixed deposit is a great financial instrument that can help you to save and multiply your money over a long period of time, generally 10 years. In some of the fixed deposit cases such as the fixed deposit of elderly people and women, the government also gives you tax rebates , which is not available in other investment opportunities. Which is why fixed deposit becomes an interesting and safe choice to park your surplus fund for a long period of
time.


What is an FD Account?

Full form of an FD account is a fixed deposit account. It is an investment tool that allows the deposit of a certain amount of money in a bank or any other financial institution over a specific period of time. The bank or the financial institution then gives you a specific rate of interest on that FD which is fixed until the term is completed. The return of fixed deposits are not manipulated or affected by the ups and downs of the financial market in the country. You will get the exact same return that is mentioned in your document for the rest of the period of your fixed deposit. Which is why it is one of the most preferred and safest investment options that is available to all the people of India. 


Features of a Fixed Deposit Account (FD Account)

 The key features of a Fixed Deposit account are listed in the following table:

Feature Description
Interest Rate Fixed interest rate throughout the tenure
Tenure Fixed period for investment that ranges from 7 days to 10 years
Minimum Deposit Minimum deposits of Rs. 1000
Maximum Deposit No upper limit
Interest Payout Frequency Options for payout: monthly, quarterly, annually, or at maturity
Premature Withdrawal Allowed under certain conditions on payment of penalty fees
Loan Against Fixed Deposit Available
Renewal Options You get choices for renewing or withdrawing the deposit at maturity
Tax Implications
  • Interest and maturity amount from a FD is taxable under the Income Tax Act, 1961
  • The Tax-Saving Fixed Deposits provide tax deductions of up to Rs. 1.5 lakhs under Section 80C of the IT Act, 1961
Security Generally considered a safe investment with capital protection
Eligibility
  • Resident Indians
  • Non-Resident Indians (NRIs) (NRE/ NRO Accounts)
  • Hindu Undivided Families (HUFs)
  • Sole proprietorship firms 
  • Partnership firms 
  • Limited companies
  • Trusts/ Clubs/ Societies

 


Advantages of a Fixed Deposit Account

Let us discuss some of the advantages of fixed deposit account that makes it so popular among the general masses.

  • Fixed deposit accounts are famous for stable returns as they offer fixed interest rate and stable returns on your total money.
  • If you are up for fixed deposits then it would be considered a low risk investment as they are not subject to the market fluctuation. This means no matter what’s happening in the financial markets of the country or the world the return on your fixed deposit will remain the same.
  • In fixed deposit your initial capital is preserved and return back along the interest accumulated over the years
  • Different banks of a different tennis for fixed deposit and you can choose them as per your goals.
  • Opening a fixed deposit account is as easy and state forward as opening a savings account. You don’t need to do much research and thought provoking like you have to do another investment option such as share market
  • Moreover if you are looking for some passive and regular income then fixed deposits are an excellent source of that as you can get the interest occurring on your fixed deposit money on a monthly basis to your regular savings account. 


Top Banks Interest rates in fixed deposit 

Different banks and financial institutions offer different interest rates on the fixed deposit below is the complete table of those banks and financial institution.

Bank  General Public Interest Rates p.a.  Senior Citizen Interest Rates p.a. 
Axis Bank 3.00% p.a. to 7.20% p.a. 3.50% p.a. to 7.85% p.a.
Bandhan Bank 3.00% p.a. to 7.85% p.a. 3.75% p.a. to 8.35% p.a.
Bank of Baroda 4.25% p.a. to 7.25% p.a. 4.75% p.a. to 7.75% p.a.
Canara Bank 4.00% p.a. to 7.25% p.a. 4.00% p.a. to 7.75% p.a.
Central Bank of India 3.50% p.a. to 7.00% p.a. 4.00% p.a. to 7.50% p.a.
HDFC Bank 3.00% p.a. to 7.25% p.a. 3.50% p.a. to 7.75% p.a.
ICICI Bank 3.00% p.a. to 7.20% p.a. 3.50% p.a. to 7.75% p.a.
IDBI Bank 3.00% p.a. to 7.00% p.a. 3.50% p.a. to 7.50% p.a.
IDFC FIRST Bank 3.00% p.a. to 8.00% p.a. 3.50% p.a. to 8.50% p.a.
IndusInd Bank 3.50% p.a. to 7.75% p.a. 4.00% p.a. to 8.25% p.a.
Karnataka Bank 3.50% p.a. to 7.40% p.a. 3.90% p.a. to 7.80% p.a.
Kotak Mahindra Bank 2.75% p.a. to 7.40% p.a. 3.25% p.a. to 7.90% p.a.
Punjab National Bank 3.50% p.a. to 7.25% p.a. 4.00% p.a. to 7.75% p.a.
RBL Bank 3.50% p.a. to 8.10% p.a. 4.00% p.a. to 8.60% p.a.
YES Bank 3.25% p.a. to 7.75% p.a. 3.75% p.a. to 8.25% p.a.
Union Bank of India 3.50% p.a. to 7.25% p.a. 4.00% p.a. to 7.75% p.a.
State Bank of India 3.50% p.a. to 7.00% p.a. 4.00% p.a. to 7.50% p.a.
UCO Bank 2.90% p.a. to 7.05% p.a. 3.15% p.a. to 7.55% p.a.

 

 

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