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.
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 :
Bank Name | Tenure | Interest Rate (p.a.) |
---|---|---|
SBI | 7 days – 10 years | 5.50% - 6.50% |
HDFC | 7 days – 10 years | 3.50% - 6.75% |
Axis | 7 days – 10 years | 3.50% - 7.25% |
Bank Of Baroda | 7 days – 10 years | 4.50% - 7.00% |
ICICI | 7 days – 10 years | 4.00% - 7.10% |
PNB | 7 days – 10 years | 4.25% - 7.00% |
IDBI | 15 days – 20 years | 4.25% - 7.15% |
Canara | 7 days – 10 years | 5.25% - 7.40% |
Union Bank Of India | 7 days – 10 years | 5.00% -7.40% |
Bank Of India | 7 days – 10 years | 4.00% - 7.10% |
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 :
Bank Name | Tenure | Interest Rate (p.a.) |
---|---|---|
SBI | 7 days – 10 years | 6.00% - 7.00% |
HDFC | 7 days – 10 years | 4.00% - 7.60% |
Axis | 7 days – 10 years | 3.50% - 7.75% |
Bank Of Baroda | 7 days – 10 years | 4.50% - 7.00% |
ICICI | 7 days – 10 years | 4.50% - 7.60% |
PNB | 7 days – 10 years | 4.75% - 7.50% |
IDBI | 15 days – 20 years | 4.25% - 7.65% |
Canara | 7 days – 10 years | 5.75% - 7.90% |
Union Bank Of India | 7 days – 10 years | 5.00% -7.90% |
Bank Of India | 7 days – 10 years | 4.00% - 7.10% |
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 |
The factors affecting Fixed Deposit interest rates are as follows :
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 :
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 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.
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 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.
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. |
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.
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. |
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.
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. |
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.
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. |
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.
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.