Fixed Deposit Rates 2021

Posted by  Fintra , updated 2018-06-02

Fixed Deposit Rates 2021

Fixed deposits commonly known as FD is an investment/savings account and a tool offered by banks to earn higher interest rates than a regular savings account, till the FD matures. It is also referred to as time deposit and term deposit many times. The interest rates of FD are comparatively risk-free along with offering guaranteed returns. Moreover, the funds invested into this scheme is paid just once at the time of opening the fixed deposit account for a fixed tenure.  

The investor has to just deposit the specific amount for a fixed tenure, and against it, the bank will offer interests, depending on the FD tenure and the deposited amount. The FD Interest rates are generally calculated on the principal amount at the end of the tenure that ranges from 7 days to 10 years, which can be requested as per the requirement. One thing to be taken care of is that you cannot withdraw money before maturity, unlike a savings deposit without paying a penalty. For such accounts, you may or may not require to open a separate account because mostly the maturity amount will get deposited in the bank’s savings account after the maturity date.  

FDs are indeed one of the conventional and smartest means to secure your funds and enable them to grow. This encourages you to develop the habit of saving and enables you to earn the best interest rates on them. Thus, 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 India. In this blog, Fintra will highlight some of the latest fixed deposit rates for the year 2021 and give in-depth information about fixed deposits by talking about the following topics:

  1. Current Fixed Deposit Rates Offered By Top Banks In India
  2. The Advantages and Disadvantages of Fixed Deposits
  3. What you must be looking into before buying an FD?
  4. Types of Fixed Deposits in India
  5. Why does FD interest rates keep changing?
  6. Fixed Deposit Interest Rates Calculator 

Current Fixed Deposit Rates Offered By Top Banks In India

The FD rates offered by different banks vary according to the duration of the time and different bank policies such as  SBI fixed deposit interest rates vary from 2.90% to 3.40% over a period of 7 days – 10 years. The bank interest rates being offered by DBS Bank, ICICI Bank, IDFC Bank, Kotak Mahindra, and Yes Bank are among the best for opening a fixed deposit.

Here’s a table showing the best interest rates offered by some of the top banks in India for below Rs. 2 Crore: 

          Bank

        Tenure

FD Rates For General

       Citizens (p.a.)

FD Rates For Senior    

       Citizens (p.a.)

State Bank of India

7 Days – 10 Years

     2.90% to 5.40%

     3.40% to 6.20%

DBS Bank

7 Days – 10 Years

     2.50% - 5.50%

     2.50% to 5.50%

Kotak Mahindra Bank

7 Days – 10 Years

     2.50% to 5.30%

     3.00% to 5.80%

ICICI Bank

7 Days – 10 Years

     2.50% to 5.50%

     3.00% to 6.30%

Citi Bank

7 Days – 10 Years

     2.40% to 3.50%

     2.90% to 4.00%

Yes Bank

7 Days – 10 Years

     3.50% to 6.75%

     4.00% to 7.50%

IDFC Bank

7 Days – 10 Years

     2.75% to 5.75%

     3.25% to 6.25%

IndusInd Bank

7 Days – 10 Years

     3.00 to 6.50%

     3.50% to 7.00%

Deutsche Bank

7 Days – 10 Years

     1.80% to 5.50%

     1.80% to 5.50%

Canara Bank

7 Days – 10 Years

     2.95% to 5.50%

     2.95% to 6.00%

Bank of India

7 Days – 10 Years

     3.25% to 5.30%

     3.75% to 5.80%

Bank of Baroda

7 Days – 10 Years

     2.80% to 5.25%

     3.30% to 6.25%

Central Bank of India

7 Days – 10 Years

     2.75% to 5.10%

     3.25% to 5.60%

HDFC Bank

7 Days – 10 Years

     2.50% to 5.50%

     3.00% to 6.25%

Punjab National Bank

7 Days – 10 Years

     3.00% to 5.30%

     3.50% to 5.80%

Axis Bank

7 Days – 10 Years

     2.50% to 5.75%

     2.50% to 6.50%

 *The fixed deposit rates are subject to change without any prior notice

                     fixed deposit

The Advantages and Disadvantages of Fixed Deposits

It's very easy and simple to open a fixed deposit and it can be opened online and offline. However, it's vital to understand if investing in a fixed deposit will be a wise option or not. Hence, Fintra will guide you through the advantages and disadvantages of a fixed deposit account to enhance your knowledge and enable you to make a wise decision:

Advantages of Fixed deposits

Disadvantages of Fixed Deposits

What you must be looking into before buying an FD?

Following are certain things one must know before investing in an FD account:

You can refer to the above guidelines if you're desiring to open an FD account or even if you already have one. These guidelines will ensure that your FD account is serving the main purpose for which you have opened the account, be it for long-term financial goals or create savings.

                 how to select fd plan

Types of Fixed Deposits in India

Various types of FD schemes vary from tenure, interest rates, and the age of the depositor. Following is the list of the various types of Fixed Deposit available in India:

Why does FD interest rates keep changing?

Fixed Deposit interest rate is a portion of the state of the economy, resulting in the monetary policy adopted by the RBI. The factors that lead to an increase or decrease in fixed deposit rates are as following:

As investors expect a positive real rate of return, Fixed Deposit rates are linked to the rates of inflation  

  1. Since an adequate liquidity scenario won't compel borrowers for aggressive borrowing rate, the case is the opposite during a tight liquidity position 
  2. The demand and supply situations for credit also causes the changes in fixed deposit rates
  3. It's the anticipation of the changes in financial policy or cut in lending rates
  4. Borrowers own fund costs, falling call rates, credit demand, etc. signify fluctuations in fixed deposit rates

                                                    FD Interest Rates

Fixed Deposit Interest Rates Calculator 

Fintra's online FD calculator is a convenient and user-friendly financial tool. The fixed deposit interest rate calculator is used in a matter of less than a second! Using the FD interest rates calculator, you can immediately calculate the highest fixed deposit rates you will obtain on your deposit. Alternatively, you can use the following formula:

A = P * (1+r/n) ^ n * t I=A-P

P = Principal Amount A = Maturity Value

r = Interest Rate

n = Frequency of compound interest t = Tenure

I = Earned interest

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