Best Fixed Deposit (FD) Rates For April 2023 in India

Posted by Fintra , updated 2023-04-02

What are Fixed Deposit (FD) Interest Rates?

The rate of interest on FDs refers to the bank's interest rates that will be availed on fixed deposit schemes. Furnished by varied banks and NBFCs, FDs are very popular among investors because they offer the highest rate of interest along with secured returns. FDs are also termed 'Term Deposits' or 'Time Deposits'.

With various types of FDs, individuals invest a fixed amount for a predetermined period, this is referred to as maturity tenure. Upon maturity, financial institutions return the principal amount invested and the fixed deposit interest earned throughout the tenure.

Top Banks Fixed Deposit Interest Rates for April 2023 in India for below Rs. 2 Crore

FDs are also known to be the safest investment options available in the market. Along with offering guaranteed best FD rates, some banks also offer extra interest rate benefits for senior citizens. FDs are the most popular kinds of investments that bear no market risk compared to other investment options.

Following is the list of the latest best FD rates in India offered by some of the top banks for tenures ranging from 7 days to 10 years for a deposit amount of less than 2 Crore Rupees:

Name of Bank	For General Citizens (p.a.)	For Senior Citizens (p.a.)
Allahabad Bank (Indian Bank) FD Interest Rates	2.80% to 7.00%	3.30% to 7.50%
Andhra Bank FD (Union Bank) FD Interest Rates	3.00% to 7.30%	3.50% to 7.80%
Axis Bank FD Interest Rates	3.50% to 7.26%	3.50% to 8.01%
Bandhan Bank FD Interest Rates	3.00% to 8.00%	3.75% to 8.50%
Bank of Baroda FD Interest Rates	3.00% to 7.05%	3.50% to 7.55%
Bank of India FD Interest Rates	3.00% to 7.05%	4.50% to 6.25%
Canara (Syndicate Bank) Bank FD Interest Rates	3.25% to 7.15%	3.25% to 7.65%
Central Bank Of India FD Interest Rates	4.00% to 6.75%	4.50% to 7.25%
DBS Bank FD Interest Rates	2.50% to 7.25%	2.50% to 7.75%
HDFC Bank FD Interest Rates	3.00% to 7.00%	3.50% to 7.75%
HSBC Bank FD Interest Rates	2.85% to 7.00%	3.35% to 7.50%
ICICI Bank FD Interest Rates	3.00% to 7.00%	3.50% to 7.50%
IDFC Bank FD Interest Rates	3.50% to 7.50%	4.00% to 8.00%
Indian Overseas Bank FD Interest Rates	4.50% to 6.55%	4.50% to 7.00%
IndusInd Bank FD Interest Rates	3.50% to 7.50%	4.00% to 8.25%
Punjab National Bank FD Interest Rates	3.50% to 6.75%	4.00% to 7.25%
SBM Bank FD Interest Rates	4.25% to 7.75%	4.75% to 8.25%
SBI FD Interest Rates	3.00% to 6.75%	3.50% to 7.25%
UCO Bank FD Interest Rates	2.75% to 5.00%	3.00% to 5.50%
Yes Bank FD Interest Rates	3.25% to 7.00%	3.75% to 7.75%
Citibank FD Interest Rates	2.10% to 3.50%	2.60% to 4.00%
RBL FD Interest Rates	3.50% to 6.25 %	4.00% to 6.75%
IDBI Bank	3.00% to 6.25%	3.50% to 6.75%

*Please Note: The above mentioned FD interest rates in the table are subject to change. It does not represent any chronological order.

Fixed Deposit Benefits

Important Terms For Fixed Deposit (FD) Interest Rates

Timely Closure: This refers to the closure of the individual's FD account at the time it matures. When the individual closes its fixed deposit rates account on its maturity date, the bank will pay back the principal amount along with the interest, which the individual has accumulated during the term chosen.
Partial Withdrawal: Partial withdrawal allows us to withdraw a certain amount from our fixed deposit amount. The vital reason for making a partial withdrawal could be some personal emergency. One might also desire to deposit some amount with another bank offering a better fixed deposit interest rate than its current interest rate. In general, it is allowed in Rs. 1000 units, and around 1% is the penalty levied by the bank. However, the remaining amount in a fixed deposit account will be able to earn the original and the best bank FD rates.
Breaking an FD Account: This is the opposite of the timely closure of one's FD account. In timely closure, one withdraws the amount after the maturity period has been completed, whereas, in premature withdrawal or breaking the FD, one withdraws its entire fixed deposited money before the maturity. Generally, banks don't allow premature withdrawals of fixed deposit accounts, but it depends on the norms of the banks. Nearly all banks levy penalties when someone breaks the FD before its maturity and pays back the principal amount and the interest on FDs at the lowest rate of interest. However, some banks do waive of penalty if someone withdraws their FD with the bank because of some emergency.

How to Calculate Fixed Deposit (FD) Maturity Amount?

Fixed Deposit (FD) maturity amount and the FD interest can be calculated easily with the assistance of an online FD Calculator 2023.

Folowing are some formulas that are used for the computation of the maturity amount of the FD at fixed FD interest rates:

1. Calculation of Maturity Amount for Simple Interest FDs

For Simple Interest FDs:
M = P + (P x r x t / 100) Here, M = Maturity value P = Principal amount deposited r = Rate of Interest t = Tenure	Example: P (Principal sum deposited in FD) = of Rs. 1,00,000 Tenure, t= 5 years Rate of interest, r = 10% The maturity Amount, M = Rs.1,00,000 + (1,00,000 x 10 x 5 / 100) Maturity value = Rs. 1,50,000

2. Calculation of Maturity Amount for Compound Interest FDs

For Compound Interest FDs:
M = P + P {(1 + i / 100) t – 1} Here, M = Maturity value P = Principal amount deposited t = Tenure	Example: If P= Rs. 1,00,000 t= 5 years r= 10% M = Rs. 1,00,000 {(1 + 10 / 100) 5 – 1} Maturity value = Rs. 1,61,051

How is Fintra's Online FD Calculator Useful and How to use Fintra's FD Calculator?

Manual calculating FD amounts could be tedious, tricky, and complicated- the chances of making errors and inaccuracy will be on the higher side. Hence, Fintra's online FD Calculator 2023 is very useful in the following ways:

It enables to do calculations of complex variables with few clicks.
Fintra's online FD Calculator saves your time and energy.
It also allows investors to easily compare bank FD rates and maturity value of Fixed Deposits furnished by various financial institutions.
There's more accuracy as compared to manual calculations.

To calculate the FD maturity value within a second, please click here.

Taxation on Fixed Deposit Interest Rates

You might be having some queries on tax applicable to income earned from Fixed Deposits (FDs) Interest Rates. Hence, the following are some vital questions relating to the queries along with answers:

How Tax is Calculated on the Income Earned from FD Interest Rates?

Do note that income earned by interest is entirely taxable. The income is added to the total income and gets taxed as per the applicable tax slabs. This falls under the Income from Other Sources category in the Income Tax Return (ITR).

Why TDS is Deducted on Interest Earned for FD?

Banks deduct Tax Deducted at Source (TDS) on revenue earned by interest because it is an accumulated amount. Some believe banks deduct tax when the fixed deposit scheme matures and the interest earned is credited. However, it is at the end of every financial year banks deduct TDS.

When to Pay Tax On Income Earned by Fixed Deposit Interest Rates?

If you, as a fixed deposit account holder, have to pay tax on your income earned by interest on an FD, then you have to pay it before the end of a financial year.

Please Note: If you are earning some large income from interest on your Fixed Deposit, then you might have to pay tax every quarter.

Investment Tips for Fixed Deposit

Below are some vital tips to consider before investing in a fixed deposit:

Before investing in an FD, consider the factors such as maturity, penalty, breaking the fixed deposit before its maturity, fixed deposit rates, etc.
Experts advise researching the latest trend of the FD interest rates. If you are planning to re-invest when the bank FD rates are increasing, then opt for a shorter tenure and vice-versa.
Before making a final decision to open a fixed deposit account, go through the tenure-wise fixed deposit rates offered by the bank. At times banks offer the highest interest rate for some specific tenures.
In addition, plan out expenses carefully and ensure it is not affecting the budget.

Conclusion

From the above information, we can conclude that FD is an investment vehicle enabling depositors park their idle funds for a fixed period and earn fixed interest on it at regular intervals during their chosen tenure or at maturity. Since FDs offer income certainty and capital protection, it makes them a popular investment tool, especially among new and conservative investors. Due to their features, fixed deposits are also known to be an ideal instrument for realizing short-term financial goals along with enabling to park emergency and post-retirement corpus.

Fixed deposits guarantee consistent interest rates, special interest rates for senior citizens, various interest payment options, no market-related risks, and it has income tax deductions. Before opening a new fixed deposit or renewing an existing one, it is vital to compare the latest fixed deposit rates among the leading banks. In fact, various top banks in India provide a satisfactory range of FD options that come with a list of features like competitive rate of interest, nomination facility, joint account, loan/overdraft facility, and many more.