Which Bank has the Highest Interest Rate for Fixed Deposits in 2023?


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Bank with Highest Interest Rate on FD in India

When we start working, the majority of us try to save some money. Well, to create a corpus, one must start investing rather than saving. And as we speak of investing, one of the best ways is a Fixed Deposit account. As a matter of fact, a Fixed Deposit is one of the safes options in investment in which you can get consistent interest rates. Senior citizens who have a Fixed Deposit account can get special interest rates. Apart from this, an FD is in no way related to market-related risks. However, when you are going to open an FD or renew an existing one, you must compare the current FD interest rates in the leading banks in India. So, let us take a look at the Interest Rate for Fixed Deposits of the top banks in the country below INR 2 Crore.

Highest FD Interest Rates for General Citizens and Senior Citizens

Name of the banks For General Citizens (per annum) For Senior Citizens (per annum)
State Bank of India 3.00% to 7.10% 3.50% to 7.60%
Punjab National Bank 3.50% to 7.25% 4.00% to 7.75%
IDBI Bank 3.00% to 6.75% 3.50% to 7.50%
HDFC Bank 3.00% to 7.10% 3.50% to 7.75%
IDFC First Bank 3.50% to 7.75% 4.00% to 8.25%
Canara Bank 3.25% to 7.00% 3.25% to 7.50%
Bank of Baroda 3.00% to 7.05% 3.50% to 7.55%
RBL Bank 3.25% to 7.80% 3.75% to 8.30%
ICICI Bank 3.00% to 7.10% 3.50% to 7.60%
Kotak Mahindra Bank 2.75% to 7.20% 3.25% to 7.70%
KVB Bank 4.00% to 7.50% 5.90% to 8.00%
Axis Bank 3.50% to 7.26% 3.50% to 8.01%

Tax Saver FD Interest Rates 2023

When you go for a tax-save FD  account, you get a maximum deduction of INR 1.5 lakh, under Section 80C of the Income Tax Act. The maximum deposit allowed is INR 1.5 lakh. This type of account comes with a lock-in period of 5 years. An additional interest rate is offered to senior citizens.

Name of the Bank (Tax Saving FD) For General Citizens (per annum) For Senior Citizens (per annum)
Canara Bank Tax Saving FD 6.50% 7.00%
SBI Bank Tax Saving FD 6.50% 7.00%
PNB Tax Saving FD 6.50% 7.00%
HDFC Bank Tax Saving FD 7.00% 7.75%
IndusInd Bank Tax Saver Scheme 7.25% 8.00%
IDBI Bank Tax Saving FD 6.25% 7.00%
Union Bank of India Tax Saving FD 6.70% 7.20%
RBL Bank Tax Saving FD 7.00% 7.50%
Bank of Baroda Tax Saving FD 6.25% 6.90%
IDFC First Bank Tax Saving FD 7.00% 7.50%
Punjab and Sind Bank Tax Saving FD 6.25% 6.75%

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Features of a Fixed Deposit Account

A Fixed Deposit Account comes with certain features. Some of them are mentioned herein below:

  • As compared to the other options, an FD account is much safer
  • There is no cap on the maximum amount
  • Over a fixed period of time, you will be able to earn interest
  • Up to 10 years, the tenure is flexible
  • For senior citizens, the rates are additional.

Types of Fixed Deposit Accounts

When you choose to open an FD account, you will come across various types of them. Some of the types of FD accounts are mentioned herein below:

  • Normal Fixed Deposits
  • Cumulative/Non-Cumulative Fixed Deposits
  • Tax-Saving Fixed Deposits
  • Flexi Fixed Deposits
  • Senior Citizen Fixed Deposits
  • NRI Fixed Deposits.

Fixed Deposits for Senior Citizens

The Fixed Deposit Accounts for senior citizens come with a bit different features than the Fixed Deposit Account for general account holders. Here are some of the features mentioned below:

  • The age of the depositor should be more than 60 years at the time of opening the Fixed Deposit account
  • The rate of interest is usually higher by 0.25% to 0.50%. However, it depends much on the bank
  • Against the FD, a loan can be availed of
  • The tenure of the account is between 7 days and 10 years
  • The penalties that one has to pay for premature withdrawal are the same as they are for the general public.

Eligibility Criteria for FD Investment

To open an FD account in India, one has to be either of one of the following:

  • Indian resident
  • Societies or clubs
  • NRI
  • Partnership firms
  • Minors
  • Individuals or joint investors
  • Senior citizens
  • Companies
  • Sole proprietorship.

Documents Needed to open an FD Account

To open an FD account, you would need certain documents, such as:

  • An Identity proof (Voter ID, driving license, Aadhaar card, senior citizen ID card, photo ration card, PAN card, etc.)
  • An address proof (bank statement with cheque, utility bills, Post-office issued identification card or certificate, etc.).

These are some of the information that can help you in opening an FD account. Now you only need to contact your preferred bank and open the account to create the corpus you need. If you want to know the Fixed Deposit rates of the bank, you can use a Fixed Deposit calculator available online.

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FAQs: Bank with Highest Interest Rate for Fixed Deposits in 2023

What is the FD interest rate in 2023?

In most of the banks, interest on Fixed Deposits offered is 7.3%.

Which bank offers an 8% interest rate?

Yes Bank offers an 8% interest rate of FD to senior citizens.

Which banks offer the highest FD interest rates?

The banks that offer the highest FD interest rates are Punjab National Bank, ICICI Bank, Axis Bank, HDFC Bank, etc.

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Mar 16, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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