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Fixed deposit interest rate

IndianMoney.com Research Team | Updated On Wednesday, February 13,2019, 01:39 PM

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Fixed deposit interest rate

 

 

A fixed deposit is an investment instrument offered by banks and non banking financial companies NBFCs, where investors deposit money for a higher rate of interest than a normal savings bank account. You can invest a lump sum in fixed deposits for a period ranging from 7 days to 10 years.

Interest Rates and Charges

Money invested in FD earns interest throughout the tenure. Banks offer interest on compounding basis. Usually, banks compound the investment on a quarterly basis. Although money invested in FD can be withdrawn before maturity, you should be reluctant to withdraw as maximum benefits can be seen only at maturity.

You can withdraw FD before maturity, but all banks and non banking financial companies levy penalties on the interest earned on FD for both partial and complete withdrawal. Principal invested would not be affected, only the interest earned would be reduced for withdrawing before maturity. You would also be charged a fee called ‘liquidating fee’ for all premature withdrawals made from fixed deposit accounts. 

SEE ALSO: What are Fixed Deposit Accounts?

FD Interest Rates 2019

Following are the factors affecting FD Interest Rate:

  • Higher interest rate would be offered on high investments.
  • Banks and non banking financial companies offer higher interest rate if the amount is invested for a longer period.
  • Higher interest rate would be offered if you invest in cumulative fixed deposits.
  • Compounding interest on a yearly basis yields minimal interest while compounding interest on a quarterly basis offers maximum interest.
  • Bank fixed deposit highest interest rates offer higher interest rates for existing customers and senior citizens.

The table below shows the fixed deposit interest rate offered by popular banks and non banking financial companies in 2019:

Bank

FD Rate of Interest

Senior Citizen FD Rates

SBI Fixed Deposit

5.75% - 6.85%

6.25% - 7.35%

HDFC Bank Fixed Deposit

3.50% - 7.40%

4.00% - 7.90%

ICICI Bank Fixed Deposit

4.00% - 7.50%

4.50% - 8.00%

Axis Bank

3.50% - 7.55%

3.50% - 8.50%

Kotak Bank

3.50% - 7.40%

4.00% - 7.90%

IDFC Bank

4.00% - 8.25%

4.50% - 8.75%

Bank of Baroda

4.50% - 6.85%

5.00% - 7.35%

Citibank

3.00% - 7.25%

3.50% - 7.75%

IDBI Bank

5.75% - 7.25%

5.75% - 7.75%

Indian Bank

4.50% - 6.75%

5.00% - 7.25%

Indian Overseas Bank

4.50% - 6.80%

5.00% - 7.30%

OBC

5.75% - 6.75%

-

PNB

5.75% - 6.75%

6.25% - 7.25%

HDFC

7.70% - 7.70%

7.95% - 7.95%

PNB Housing Finance

8.25% - 8.45%

8.50% - 8.70%

Allahabad Bank

5.00% - 6.75%

-

Andhra Bank

4.00% - 6.80%

% - 7.30%

Bank of India

5.25% - 6.70%

5.25% - 7.20%

Bank of Maharashtra

4.25% - 6.60%

4.25% - 7.10%

Canara Bank

5.75% - 7.00%

6.25% - 7.50%

Central Bank of India

4.80% - 6.65%

5.30% - 7.15%

Dena Bank

4.00% - 6.75%

4.50% - 7.25%

Punjab and Sind Bank

4.00% - 7.00%

4.00% - 7.50%

UCO Bank

4.50% - 6.60%

-

Union Bank of India

5.00% - 6.85%

5.50% - 7.35%

Vijaya Bank

5.00% - 6.80%

5.50% - 7.30%

United Bank of India

4.00% - 6.50%

4.00% - 6.50%

IndusInd Bank

3.75% - 8.00%

4.25% - 8.50%

DCB Bank

4.00% - 8.05%

4.50% - 8.75%

Karur Vysya Bank

5.00% - 7.25%

5.00% - 7.75%

DHFL

8.25% - 9.00%

8.65% - 9.40%

LIC Housing Finance

8.15% - 8.30%

8.40% - 8.55%

Bajaj Finserv

8.00% - 8.75%

8.35% - 9.10%

Syndicate Bank

4.75% - 7.05%

5.25% - 7.55%

DBS Bank

4.00% - 7.50%

4.00% - 7.50%

Karnataka Bank

3.50% - 7.50%

4.00% - 8.00%

Dhan Laxmi Bank

4.00% - 7.25%

4.00% - 7.75%

Lakshmi Vilas Bank

4.50% - 8.00%

4.50% - 8.60%

RBL Bank

5.00% - 8.05%

5.50% - 8.55%

Standard Chartered Bank

4.25% - 7.40%

5.00% - 7.90%

Corporation Bank

4.50% - 7.00%

5.00% - 7.50%

Jammu And Kashmir Bank

5.00% - 7.30%

5.50% - 7.80%

Yes Bank

5.00% - 7.25%

5.50% - 7.75%

Federal Bank

3.50% - 7.30%

4.00% - 7.80%

Bandhan Bank

3.50% - 7.55%

4.25% - 8.30%

HSBC Bank

3.15% - 7.00%

3.65% - 7.50%

South Indian Bank

4.00% - 7.60%

4.50% - 8.10%

FD Calculator

SEE ALSO: Tax Saving Fixed Deposits

FD calculator is a simulation available on official websites of banks and non banking financial companies offering fixed deposit scheme. FD calculator helps investors get an idea on the returns on their investment in FD.

Actual returns earned may be different from what FD calculator shows. Note that the results displayed in FD calculator are based purely on the inputs provided by users. You must add inputs that you would like to invest, tenure of investment and choose lump sum payout or monthly payout. Compound interest is employed in fixed deposit schemes to calculate return on investment in FD.

Formula to calculate compound interest:

A = P(1+r/n)(nt)

CI = A-P

CI = compound interest

A is the total amount earned at the end of FD’s tenure

P is the principal amount invested in FD

r is the rate of interest of FD

n is the number of times interest compounding in a year

t is the number of years of investment

SEE ALSO: Difference Between Recurring And Fixed Deposit

Resident Term Deposits

A term deposit is a fixed term deposit offered by banks and financial institutions. Term deposits are usually short term deposits with maturities ranging from a month to a few years. When a term deposit is made, investors understand that the investment can be withdrawn only when the term ends or by giving notice of a few days. 

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