Best FD Interest Rates in India 2024

One key part of wealth creation is investment, you’ll have to invest to grow your wealth. When the market is down investment is a risky business hence, at that time, you’ll have to keep your wealth afloat by keeping your money safe in an account like Fixed Deposit.

Fixed Deposits are a great way to store your money, it necessarily does not make your investment grow rapidly like another financial tool like the stock market or bonds however, to safeguard money it is the best option.

You might be thinking but, FD offers an attractive rate of interest i.e., more than 7% so why is it not the best investment option to get guaranteed interest?

The answer is Inflation!!

Inflation is the biggest wealth killer and it will make your idle money disappear. Inflation happens when things get costly to buy.

In India, the Inflation rate remains between 3-5%, at max it has reached 6% in the past. Inflation can be best understood with an example.

Let’s say we bought an apple for Rs.10/- and after 5 years the same apple cost us Rs.50/- during these 5 years inflation rate has increased.

An increased inflation rate reduces the purchasing power of the currency and affects the accumulated wealth.  

In this article, we will list out the best FD interest rates in India 2024 where you can park your money and protect your wealth against inflation.

Best FD Interest Rates in India

Best FD Interest Rates in India 2024

The following are the FD interest rates in India of various banks and NBFCs-

Public Bank Interest Rates

Bank NameHighest slab1-year tenure 3-year tenure5-year tenure
Bank of Baroda7.056.756.756.25
Bank of India7.0566.56
Bank of Maharashtra76.1565.75
Canara Bank7.156.756.56.5
Central Bank of India7.356.7566
Indian Bank76.16.256.25
Indian Overseas Bank76.46.56.5
Punjab & Sind Bank7.
Punjab National Bank7.256.756.756.5
State Bank of India6.756.756.256.25
UCO Bank7.156.756.36.1
Union Bank of India7.

Private Bank Interest Rates

Bank NameHighest slab1-year tenure3-year tenure 5-year tenure
Axis Bank7.266.7577
Bandhan Bank87.257.255.85
City Union Bank7.756.757.256.9
CSB Bank7.555.755.75
DBS Bank7.
DCB Bank7.857.257.857.6
Dhanlaxmi Bank7.256.2566.1
Federal Bank7.256.756.56.3
HDFC Bank76.677
ICICI Bank76.677
IDBI Bank7.16.756.256.25
IDFC First Bank7.56.757.57
IndusInd Bank7.577.57.25
Jammu & Kashmir Bank7.256.756.56.5
Karnataka Bank7.36.85.755.75
Karur Vysya Bank7.256.576.25
Kotak Mahindra Bank76.756.56.2
Nainital Bank7.
RBL Bank7.8777
SBM Bank India7.757.057.37.75
South Indian Bank7.46.66.56
Tamilnad Mercantile Bank7.256.756.56.5
Yes Bank7.75777

NBFC Interest Rates

Bank NameHighest slab1-year tenure3-year tenure5-year tenure
AU Small Finance Bank7.756.17.757.2
Capital Small Finance Bank Limited7.
Equitas Small Finance Bank87.57.757
ESAF Small Finance Bank85.55.755.25
Fincare Small Finance Bank87.2577
Jana Small Finance Bank8.
North East Small Finance Bank86.57.256.25
Shivalik Small Finance Bank Limited87.587
Suryoday Small Finance Bank8.5177.256.75
Ujjivan Small Finance Bank86.57.27.2
Unity Small Finance Bank8.57.357.657.65
Utkarsh Small Finance Bank87.57.57.5

What is a Fixed Deposit Account?

A fixed Deposit or FD Account is an account that offers a higher interest rate than the savings Account for a fixed tenure chosen by the Account holder.

In FD Account, you deposit the funds for a fixed tenure, and at the time of maturity, you receive the amount you have invested plus compound interest.

Highest FD Interest Rate in India

The following are some of the best and highest FD interest rates offered to the customer in India-

FD SchemeAll Bank FD Interest Rates 2024
IDBI Bank Tax Saving FD6.10% – 6.85%
PNB Tax Saving FD5.80% – 6.30%
IDFC First Bank Tax Saving FD6.50%
Axis Bank Tax Saving FD6.10% – 6.85%
HDFC Bank Tax Saving FD6.10% – 6.60%
IndusInd Bank Tax Saver Scheme6.75% – 7.50%
SBI Bank Tax Saving FD6.10% – 6.60%
RBL Bank Tax Saving FD6.55% – 7.05%
Canara Bank Tax Saving FD6.50% –
Bank of Baroda Tax Saving FD5.65% – 6.30%
Union Bank of India Tax Saving FD6.70% –
Punjab and Sind Bank Tax Saving FD6.10% – 6.60%

Benefits of FD Account

The following are the benefits of the Fixed Deposit Account-

  • FD Account offers guaranteed fixed returns which are paid back along with the principal amount to the account holder at the time of maturity.
  • FD Account protects your wealth from inflation and ensures that your purchasing power does not go down
  • It is a risk-free investment as you are speculating on your investment but investing in an FD Account which protects your money.
  • Some Bank provides you an option to get a credit card with your FD Account so, a person who does not have a credit history with them can open an FD Account.
  • Some FD Accounts can help you save Income tax under the Income Tax Law

How to Open a Fixed Deposit Account?

You can open a Fixed Deposit Account in any bank or NBFC, to open the FD Account you can follow these steps-

  • Visit the official website of the bank where you want to deposit your funds and navigate to the Fixed Deposit page of the website
  • Now, click on the invest now or start your FD button, you’ll find the button easily
  • After clicking on the button, you’ll be redirected to an account opening page where you’ll have to fill out the application form followed by completing the KYC
  • Some bank has an online facility of KYC and for some banks, you’ll have to visit the nearest bank branch
  • After KYC Completion, you’ll have to deposit your fund in the FD Account by either depositing funds in cash physically or making digital payments from your bank
  • After successful payment, your FD Account will be successfully opened
  • It is recommended to download the app wherever you are opening the FD Account to ensure that you are tracking the account


What is the FD interest Rate in Union Bank of India?

FD Interest rate in Union Bank of India is different for different tenures. The following are the FD Interest rate in Union Bank of India-
7-14 Days- 3.00
15 -30 Days- 3.00
31-45 Days- 3.00
46 -90 Days- 4.05
91-120 Days- 4.30
121-180 Days- 4.40
181 Days to <1 Year- 5.25
1 Year – 6.30
>1 Year to 598 Days- 6.30*
599 Days- 7.00
600 Days to 699 days- 6.30*
700 days- 7.25*
>700 days to 2 years- 6.30*
> 2 years to 799 days- 6.30*
800 days -7.30*
801 days to less than 3 Years- 6.30*
3 years- 7.30*
>3 Years to 5 Years- 6.70
>5 Years to 10 Years- 6.70

What is the highest FD Interest Rate in India?

Several banks provide good interest rates for your FD Account investment. Some NBFCs even provide you with 8.5-9% interest for the investment. However, the interest rate of your investment depends on the tenure up to which you want to invest your funds, therefore, whenever you are investing your funds then you should invest your funds for maximum tenure.

Does the Inflation rate affect the currency?

Yes, the inflation rate of the country determines the rate at which the purchasing power of that currency is. The higher the inflation rate the costlier the things in that country would be. You need to invest your funds in an account that offers more interest than the inflation rate to beat the invisible wealth eater.

what are the investment tools that can beat inflation?

The investment tool that can beat inflation is business share purchases, stock market, inflation-adjusted securities, etc. All these investment options will help you to overcome inflation and still earn profits for the investment.

Is Fixed Deposit good for Inflation?

Yes and No, well Fixed Deposit provides you a fixed interest on the investment that you’ve made and an inflation rate of a country varies in India the inflation rate at the time of economic stress is at max 6-7% in the past 20 years. The inflation interest earned is also 6-7% hence, the FD account is good to store your money and protect it from inflation but not good at making it grow.