Interest is the price paid by the bank on the deposit booked for the fixed tenure. The bank calculates the interest on the amount invested in the fixed deposit account at a certain rate. This rate is known as the fixed deposit interest rate. Fixed Deposit is a kind of deposit in which the amount is invested for a determined period of time. During that time, the amount invested yields solid returns at an attractive rate of interest that is added to the principal amount and is paid to the customer at the maturity of the plan.

Fixed Deposit Interest Rates

The rate of interest are not uniform and differ from bank to bank. These rates also depend on the tenure and the amount of investment. The depositor should check and compare the interest provided by various banking institutes before investing the money. However, these rates are revised from time to time. The latest fixed deposit interest rates offered by various banks are mentioned below :

Top 10 Banks Fixed Deposit Interest Rates

Bank Name Tenure Interest Rate (p.a.)
SBI 7 days – 10 years 3.75% - 6.90%
HDFC 7 days – 10 years 3.50% - 6.95%
Axis 7 days – 10 years 3.50% - 7.10%
Bank Of Baroda 7 days – 10 years 4.00% - 6.90%
ICICI 7 days – 10 years 4.00% - 7.00%
PNB 7 days – 10 years 4.00% - 6.90%
IDBI 15 days – 20 years 4.25% - 6.25%
Canara 7 days – 10 years 4.20% - 6.90%
RBL 7 days – 10 years 5.00% -7.65%
Bank Of India 7 days – 10 years 4.00% - 6.90%

FD Rates for Senior Citizens

Fixed Deposits have always been a reliable source of investment. The returns at regular intervals and that too without any risk add-on to its features. It is the most trusted form of investment for people especially senior citizens who are looking forward to safe and secure means of investment that pays back good returns. As in fixed deposits, the citizens of age 60 years and above are entitled to receive an additional interest on fixed deposit over and above the rate of interest offered to the other citizens. In the age where the sources of earning are limited fixed deposit provides regular income at high interest rates. The extra interest paid by bank ranges from 0.25% - 1%. The rate of interest offered by various banks are given below :

Top 10 Banks FD Interest Rates For Senior Citizens

Bank Name Tenure Interest Rate (p.a.)
SBI 7 days – 10 years 4.25% - 7.40%
HDFC 7 days – 10 years 4.00% - 7.45%
Axis 7 days – 10 years 3.50% - 7.60%
Bank Of Baroda 7 days – 10 years 4.50% - 7.40%
ICICI 7 days – 10 years 4.50% - 7.50%
PNB 7 days – 10 years 4.00% - 7.40%
IDBI 15 days – 20 years 4.25% - 6.75%
Canara 7 days – 10 years 5.75% - 7.90%
RBL 7 days – 10 years 4.70% -7.40%
Bank Of India 7 days – 10 years 4.00% - 7.40%

FD Interest Rates Calculator

The prudent customer will always anticipate the returns receivable at the end of the tenure. He/She would definitely like to know how much amount could be yielded from the deposit. Here, is when the fixed deposit calculator comes in use. The FD calculator helps in computing the maturity value of the deposit and the amount of interest earned during the investment period. It makes the comparison of interest receivable on different amounts at different tenure easy and assists the user in deciding the best service provider. The fixed deposit calculator calculates the result instantly after the insertion of relevant values such as principal amount, tenure, rate of interest and interest compounding frequency.

For Example – On deposit of ₹ 10,000 made for the period of 5 years the bank pays interest at the rate of 7% p.a. on the quarterly compounding basis. Using the interest formula mentioned below the calculator will compute the maturity value that is ₹ 14,149.

Interest Formula :

Maturity Value (A) = P (1 + r/n) nt
Interest (I) = A - P

Table Showing Interest Earned And Closing Balance

Year Interest Rate (in % p.a.) Opening Balance (in ₹) Interest Earned (in ₹) Closing Balance (in ₹)
1 7 10,000 719 10,719
2 7 10,719 770 11,489
3 7 11,489 826 12,315
4 7 12,315 885 13,200
5 7 13,200 949 14,149

Factors Affecting Fixed Deposit Interest Rate

The factors affecting Fixed Deposit interest rates are as follows :

  • Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and Repo rate affects the interest rate of all banking instruments including the fixed deposit.
  • Recession – Recession results in the downfall of interest rate offered on fixed deposit. In the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks.
  • Inflation – Inflation has a positive effect on a term deposit interest rate. During inflation, banks curb the money from people by providing higher returns.
  • Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. When the credit requirement of people soars the banks offer fixed deposit at an attractive rate of interest to meet the rising credit demands.

FD Rates Based on Investment Period

The interest rates change with the change in the tenure. The rates at various tenure vary from bank to bank. For example, fixed deposit rates in post office are different from FD interest rates in SBI or FD interest rates in HDFC. To know the interest rate of various banks read below :

Post Office Fixed Deposit Interest Rate

In Post Office, an individual can open a fixed deposit account with the minimum amount of ₹ 200 for the maximum period of 5 years. The highest interest paid on deposits is 7.80% p.a.

Post Office Interest Rate Table

Period Rate of Interest (w.e.f. 1st October 2016)
1 year 7.00% p.a.
2 years 7.10% p.a.
3 years 7.30% p.a.
5 years 7.80% p.a.

HDFC Fixed Deposit Interest Rate

HDFC Bank offers fixed deposit for the flexible period lasting up to 10 years. FD interest rates in HDFC ranges from 3.50% p.a. - 7.50% p.a. The bank provides an extra interest of 0.50% to the senior citizens.

HDFC Bank Interest Rate Table

Tenure Rate of Interest
Regular Senior Citizen
7 days to 14 days 3.50% p.a. 4.00% p.a.
15 days to 29 days 5.00% p.a. 5.50% p.a.
30 days to 45 days 5.50% p.a. 6.00% p.a.
46 days to 90 days 6.00% p.a. 6.50% p.a.
91 days to 6 months 6.25% p.a. 6.75% p.a.
6 months 1 day- 9 months 15 Days 6.50% p.a. 7.00% p.a.
9 months 16 days-less than 1 year 6.75% p.a. 7.25% p.a.
1 year 7.00% p.a. 7.50% p.a.
1 year 1 day - 1 year 15 days 7.10% p.a. 7.60% p.a.
1 year 16 days- 5 years 7.00% p.a. 7.50% p.a.
5 years 1 day -10 years 6.75% p.a. 7.25% p.a.

ICICI Fixed Deposit Interest Rate

ICICI Bank provides the fixed deposits for the flexible tenure of 7 days to 10 years. It offers distinctive interest on the deposits made under the 5 years Tax Saver FD scheme.

ICICI Bank FD Rates 2016 Table

Tenure Rate of Interest (w.e.f. 17th November 2016)
General Senior Citizen
7 days to 14 days 4.00% p.a. 4.50% p.a.
15 days to 29 days 4.25% p.a. 4.75% p.a.
30 days to 45 days 5.50% p.a. 6.00% p.a.
46 days to 60 days 6.00% p.a. 6.50% p.a.
61 days to 90 days 6.25% p.a. 6.75% p.a.
91 days to 184 days 6.25% p.a. 6.75% p.a.
185 days to 289 days 6.50% p.a. 7.00% p.a.
290 days to less than 1 year 6.75% p.a. 7.25% p.a.
1 year to 389 days 7.00% p.a. 7.50% p.a.
390 days to 5 years 7.10% p.a. 7.60% p.a.
5 years 1 day upto 10 years 6.75% p.a. 7.25% p.a.
5 Years Tax saver FD (Max upto Rs. 1.50 lac) 7.00% p.a. 7.50% p.a.

SBI Fixed Deposit Interest Rate

Fixed Deposit rates in SBI ranges from 3.75% p.a. to 4.75% p.a. The bank proffers the deposit for the minimum period of 7 days up to the maximum period of 10 years.

SBI FD Rates 2016 Table

Tenure Rate of Interest (w.e.f. 24th November 2016)
Regular Senior Citizen
7 days to 45 days 3.75% p.a. 4.25% p.a.
46 days to 210 days 3.85% p.a. 4.35% p.a.
211 days to less than 1 year 4.00% p.a. 4.50% p.a.
1 year to 10 years 4.25% p.a. 4.75% p.a.

Canara Bank Fixed Deposit Interest Rate

The deposit account can be opened for the period ranging from 7 days to 10 years with the minimum amount of ₹ 1,000. The bank pays the highest interest of 10.15% p.a. on the deposit made for the tenure of 8-10 years.

Canara Bank FD Rates 2016 Table

Tenure Rate of Interest (w.e.f. 10th November 2016
General Senior Citizens
7 days to 14 days 5.25% p.a. 5.75% p.a.
15 days to 30 days 5.25% p.a. 5.75% p.a.
31 days to 45 days 5.50% p.a. 6.00% p.a.
46 days to 179days 6.50% p.a. 7.00% p.a.
180 days to 269 days 7.06% p.a. 7.56% p.a.
270 days to less than 1 year 7.27% p.a. 7.77% p.a.
Upto 1 year 7.34% p.a. 7.87% p.a.
Above 1 year to less than 2 years 7.50% p.a. 8.03% p.a.
2 years & above to less than 3 years 7.90% p.a. 8.47% p.a.
3 years & above to less than 5 years 8.20% p.a. 8.82% p.a.
5 years & above to less than 8 years 8.30% p.a. 9.00% p.a.
8 years & above to 10 years 9.28% p.a. 10.15% p.a.

Axis Bank Fixed Deposit Interest Rate

The bank provides an interest on the fixed deposits at attractive rates. The bank pays an additional interest of 0.25% to the senior citizens. The highest interest paid by the Axis Bank on domestic fixed deposit is 7.75% p.a.

Axis Bank FD Rates 2016 Table

Tenure Interest Rates (w.e.f. 25th October 2016)
Regular Senior Citizen
7 days - 29 days 3.50% p.a. 3.50% p.a.
30 days - 45 days 5.50% p.a. 5.50% p.a.
46 days - 60 days 6.00% p.a. 6.00% p.a.
61 days - less than 4 months 6.25% p.a. 6.25% p.a.
4 months - less than 6 months 6.75% p.a. 6.75% p.a.
6 months - less than 9 months 6.75% p.a. 7.00% p.a.
9 months - less than 1 year 7.00% p.a. 7.25% p.a.
1 year - 5 years 7.25% p.a. 7.75% p.a.
5 years - 10 years 7.25% p.a. 7.75% p.a.

Yes Bank Fixed Deposit Interest Rate

The Yes Bank assures good returns on the term deposits. It provides interest at special rates on the deposit of tenure ranging from 18 months 8 days to 18 months 18 days.

Yes Bank FD Rates 2016 Table

Tenure Rate of Interest (w.e.f. 21st November 2016)
Regular Senior Citizen
7 days to 45 days 5.50% p.a. 6.00% p.a.
46 days to less than 9 months 6.75% p.a. 7.25% p.a.
9 months to less than 1 Year 7.00% p.a. 7.50% p.a.
1 Year to 10 years 7.10% p.a. 7.60% p.a.
18 Months 8 Days to 18 Months 18 Days ( special rates) 7.15% p.a. 7.65% p.a.

Compare the returns of various banks and select the fixed deposit scheme that best serves the purpose of investment.