Investor Education
Best Fixed Deposit Rates in India for 2023
Fixed Deposit Interest Rates in Different Entity 2023
FDs, i.e, Fixed Deposits are considered a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens, no market risk, various interest payment options, and income tax benefits. But before choosing the entity to invest in, it is important to compare a number of factors, such as default risk, tenure offered, prepayment penalty, and many more things. Another important factor to observe prior to investing in FDs is the latest FD rates among the leading institutions, such as banks, corporates, and post offices across the nation.
In this article, We compare the latest interest rates offered by these institutions. However, one must remember even though an important attribute, this must not be the only decision making factor. To know about the latest FD rates, let’s move forward with the article.
Latest Bank FD's Interest Rates (w.e.f January 2023)
| Bank Name | Cumulative Deposit |
| SBI Bank Fixed Deposit Rates | 3.5% to 7.25% |
| Axis Bank Fixed Deposit Rates | 3.5% to 8.01% |
| ICICI Bank Fixed Deposit Rates | 3.5% to 7.50% |
| HDFC Bank Fixed Deposit Rates | 3.5% to 7.75% |
| IndusInd Bank Fixed Deposit Rates | 4% to 7.85% |
| Federal Bank Fixed Deposit Rates | 3.5% to 7.75% |
| Canara Bank Fixed Deposit Rates | 3.25% to 7.65% |
| Union Bank of India Fixed Deposit Rates | 3.5% to 7.8% |
Watch this Video to know about top 5 fixed deposit schemes in India :
Top Bank Fixed Deposit Saving Schemes for Individuals (w.e.f January 2023)
| Bank Name | 1 Year | 3 Years | 5 Years |
| Axis Bank | 6.75% | 7.00% | 7.00% |
| HDFC Bank | 6.50% | 7.00% | 7.00% |
| Yes Bank | 7.00% | 7.00% | 7.00% |
| Canara Bank | 6.75% | 6.50% | 6.50% |
| Punjab National Bank | 6.75% | 6.75% | 6.50% |
| KVB Bank FD | 6.50% | 7.00% | 6.25% |
| Punjab and Sind Bank | 6.25% | 6.25% | 6.25% |
Top Bank Fixed Deposit Saving Schemes for Senior Citizens (w.e.f January 2023)
| Bank Name | 1 Year | 3 Years | 5 Years |
| Axis Bank | 7.50% | 7.75% | 7.75% |
| HDFC Bank | 7.00% | 7.50% | 7.50% |
| Yes Bank | 7.50% | 7.50% | 7.50% |
| Canara Bank | 7.25% | 7.00% | 7.00% |
| Punjab National Bank | 7.25% | 7.25% | 7.00% |
| KVB Bank FD | 6.90% | 7.40% | 6.65% |
| Punjab and Sind Bank | 6.75% | 6.75% | 6.75% |
Comparison of FD Interest Rates Between Banks, Financial Institutions and Post Office
This comparison will be on the basis of tenure and rates for the general public and senior citizens.
| Name of the entity | General Public (p.a.) | Senior Citizen (p.a.) | Tenure |
| Post Office | 5.50% to 7.75% | 5.50% to 9.10% | 1 year to 5 years |
| SBI Bank | 3.90% to 6.90% | 3.40% to 7.40% | 7 days to 10 years |
| ICICI Bank | 3.00% to 6.80% | 3.50% to 7.30% | 7 days to 10 years |
| HDFC Bank | 3.00% to 6.95% | 3.00% to 7.45% | 7 days to 10 years |
| Axis Bank | 3.50% to 7.20% | 3.50% to 7.75% | 7 days to 10 years |
| PNB Bank | 3.00% to 7.55% | 3.50% to 8.05% | 7 days to 10 years |
| Canara Bank | 3.25% to 7.00% | 3.35% to 7.50% | 7 days to 10 years |
| IDFC First Bank | 3.25% to 7.25% | 3.35% to 7.75% | 7 days to 10 years |
| Yes Bank | 3.50% to 7.60% | 4.00% to 8.10% | 7 days to 10 years |
| IndusInd Bank | 3.25% to 7.00% | 3.75% to 7.50% | 7 days to 5 years and above |
| Union Bank | 3.00% to 7.00% | 3.50% to 7.50% | 7 days to 10 years |
| SBM Bank | 3.50% to 7.00% | 3.75% to 7.50% | 7 days to 10 years |
| Bandhan Bank | 3.00% to 7.50% | 3.75% to 8.00% | 7 days to 10 years |
| Bank of India | 2.85% to 7.45% | 3.00% to 7.95% | 7 days to 10 years |
Comparison of FD Rates Between NBFCs (Non Banking Financial Institutions)
Some of the NBFCs also offer competitive and decent interest rates on their FD accounts. Here are some of the highest interest rates for tenure ranging from 1 yr to 5 yrs effective from Jan 2023.
Must Read : Latest SBI Fixed Deposit Interest Rates
Top Company (Corporate) Fixed Deposit Saving Schemes (w.e.f January 2023)
| Company Name | CRISIL Rating | ICRA Rating | Max. FD Rates (P. A.) |
| Shriram Transport Finance Ltd Fixed Deposit | AAA | AA+ | 8.13% |
| Mahindra Finance Ltd Fixed Deposit | AAA | - | 7.50% |
| PNB Housing Finance Ltd Fixed Deposit | AA | - | 7.55% |
| LIC Housing Finance Ltd Fixed Deposit | AAA | - | 7.50% |
| HDFC LTD Fixed Deposit | AAA | - | 7.35% |
| Sundaram Finance Company Fixed Deposit | AAA | - | 7.50% |
| Muthoot Capital Fixed Deposit | A+ | - | 7.25% |
Top Company (Corporate) Fixed Deposit Saving Schemes for Senior Citizens (w.e.f January 2023)
| Company Name | CRISIL Rating | ICRA Rating | Max. FD Rates (P. A.) |
| Shriram Transport Finance Ltd Fixed Deposit | AAA | AA+ | 8.63% |
| Mahindra Finance Ltd Fixed Deposit | AAA | - | 7.75% |
| PNB Housing Finance Ltd Fixed Deposit | AA | - | 7.80% |
| LIC Housing Finance Ltd Fixed Deposit | AAA | - | 7.75% |
| HDFC LTD Fixed Deposit | AAA | - | 7.60% |
| Sundaram Finance Company Fixed Deposit | AAA | - | 8% |
| Muthoot Capital Fixed Deposit | A+ | - | 7.50% |
Taxability On Fixed Deposits
The income earned from Fixed Deposit is completely taxable under the head Income from other sources. Though, banks do not deduct any TDS (Tax Deductible at Source) if the interest income from FDs is less than Rs. 40,000 in a year. One needs to submit form 15G and form 15H at the beginning of the FY in the bank. Once the forms are submitted, banks won’t deduct TDS.
Tax Saving Fixed Deposits
Tax Saving Fixed Deposits are a specific type of scheme under which one can get a tax deduction of up to Rs. 1.5 lakhs under Section 80C of the Income Tax Act,1961. Partial or Premature withdrawal options are not provided in this scheme and the loan facility is also not available.
Comparison of Tax Saver FD Rates Between Various Entities
The max deposit permissible here is Rs. 1,50,000. Senior Citizens are given an additional interest rate of 0.50%.
| Name of the Entity | General Public (p.a.) | Senior Citizens (p.a.) | Tenure |
| SBI Bank Tax Saving FD | 5.30% | 5.80% | Lock-in for 5 yrs |
| ICICI Bank Tax Saving FD | 5.35% | 5.85% | Lock-in for 5 yrs |
| Axis Bank Tax Saving FD | 5.75% | 6.25% | Lock-in for 5 yrs |
| HDFC Bank Tax Saving FD | 5.50% | 6.25% | Lock-in for 5 yrs |
| Canara Bank Tax Saving FD | 5.50% | 6.00% | Lock-in for 5 yrs |
| PNB Tax Saving FD | 5.30% | 6.05% | Lock-in for 5 yrs |
| IDBI Bank Tax Saving FD | 5.30% | 5.90% | Lock-in for 5 yrs |
| Corporation Bank Tax Saving FD | 5.45% | 5.95% | Lock-in for 5 yrs |
Company Fixed Deposits
The deposits placed with companies for a fixed tenure carrying a prescribed interest rate is called Company or Corporate FDs. Funds mobilized in these companies are governed by the Companies Act 2013 u/s 58A. These deposits are unsecured i.e., if the company defaults, the depositor won’t be able to recover the capital by selling the documents Hence making it a risky option.
Here is a brief comparison table between different corporates.
| Name of the entity | Interest Rate (general) | Tenure |
| Bajaj Finserv FD | 5.94%-6.60% | 1 to 5 years |
| Mahindra Finance | 5.70%-6.45% | 12 months to 5 years |
| LIC Housing Finance FD | 5.50%-5.60% | 1 to 5 years |
| HDFC Ltd. FD | 5.45%-6.05% | 1 to 7 years |
| PNB Housing FD | 5.90%-6.70% | 1 to 10 years |
| Shriram City Union Finance Ltd | 7.25%-8.40% | 12 – 60 months |
| ICICI Home Finance FD | 5.30%-6.10% | 1 to 10 years |
| Sundaram Finance Company FD | 5.72% – 6.25% | 12 to 36 months |
| Hawkins Cooker Ltd. FD* | 8.50% – 9% | 12 to 36 months |
| Housing and Urban Development Corporation (HUDCO) FD* | 6.80%-7.50% | 12 to 60 months |
*Hawkins Cooker Ltd. and HUDCO are currently not accepting fresh public deposit applications.
THE CRUXFDs are definitely a good investment option when it comes to parking a lump-sum amount. One should always do proper research about different aspects such as interest rates, tenure, taxability, reliability, and risk factors involved. For the middle-aged population having a moderate risk appetite, corporate FDs can prove to be a good option, while for senior citizens, any bank or NBFC can be chosen according to the feasibility and requirements. For the younger investors, even with a medium risk appetite, it is recommended to consider investments in conservative equity funds such as balanced advantage funds. In case they are looking for safer options, long term debt funds may be an option.