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Fixed Deposit

Fixed Deposit

What is a Fixed Deposit?

Fixed Deposit, also known as Term Deposit, is an investment product that provides guaranteed returns to its investors. It invests for a fixed tenure at fixed interest rates that are offered at the time of opening a Fixed Deposit. FDs are offered by Banks, Non-Banking Financial Companies (NBFCs), and corporate institutions. NBFCs and Corporate bodies offer higher interest rates than banks.

Explore the Best Fixed Deposit Schemes - With Attractive Interest Rates

LIC Housing Finance Ltd FD
LIC Housing Finance Ltd
Rating
FAAA
Tenure
1-5 Years
Rate of Interest
6.90% - 7.65%
Mahindra FD
Mahindra Finance
Rating
FAAA
Tenure
1-5 Years
Rate of Interest
7.10% - 8.10%
Shriram Fixed Deposit
Shriram Finance
Rating
AA+
Tenure
1-5 Years
Rate of Interest
7.59% - 8.80%
Bajaj Finserv FD
Bajaj Finance
Rating
AAA
Tenure
1-5 Years
Rate of Interest
7.16% - 8.40%
PNB Finance FD
PNB Housing Finance
Rating
FAA
Tenure
1-5 Years
Rate of Interest
7.02% - 8.00%
ICICI Home Finance FD
ICICI Home Finance
Rating
FAAA
Tenure
1-10 Years
Rate of Interest
7.00% - 7.80%
Bajaj Finance Digital FD
Bajaj Finance Digital FD
Rating
AAA
Tenure
42 Months
ROI Individual
8.09% - 8.40%
ROI Sr. Citizen
8.33% - 8.65%

Best Fixed Deposit Interest Rates in 2025:

Fixed Deposit Interest Rates are always changing, so investors must keep up with the recent developments. Knowing the current interest rates can help individuals maximize their earnings, as banks and other fiscal associations always change their rates. These rates change according to the issuer, the depositor's age, and the length of the deposit. Investors can make wise choices and safely invest their savings to lock-in attractive rates by following these rates. To get the top returns on your investment, check the Best Fixed Deposit Interest Rates in 2025 before investing.

Mahindra FD Shriram Fixed Deposit Bajaj Finserv FD
Interest Rate 8.10% 8.70% 8.10%
Tenure 3 years 3 years 3-5 years
Rating FAAA AA+ AAA

Why We Choose the Best Fixed Deposit Schemes for Safe Investment?

It is, also called Corporate Fixed Deposit, similar to regular fixed deposit schemes, but they are provided by corporate entities and NBFCs.Similar to banks, the Reserve Bank of India allows certain NBFCs to take deposits at a fixed interest rate and duration, ensuring regulatory oversight. Investors must look at solutions that offer steady returns, and Fixed Deposit stand out for their attractive interest rates.

Fixed deposit interest rates don't change even when the market conditions change. You will particularly benefit from this stability if you're seeking steady returns that involves low risk.

Moreover, Best Fixed Deposit provide duration flexibility, with options spanning from a few months to several years. This allows you to invest as per your long-term or short-term financial needs.

Similar to Bank FDs, corporate fixed depositsalso offer the following benefits

  • (I) Fixed Interest Rates.
  • (II) Flexible Tenure Options
  • (III) Flexible Interest Payout Frequency.
  • (IV) Additional Interest for Senior Citizens.

Two additional benefits of corporate fixed deposits compared to bank fixed deposits are

  • (I) The Interest Rates are typically higher than those offered by banks.
  • (II) In this, the penalty period for withdrawing early is shorter

Taxation on the Best Fixed Deposit Interest Rates in 2025

The amount of tax taken from Taxation on Best Fixed Deposit Interest rates.

The amount of tax taken from Fixed Deposits interest varies depending on who holds the account

  • (I) According to Section 195 of the IT Act 1961, the TDS rate for non-resident Indians (NRIs) is 30% plus extra charges.
  • (II) For Indian citizens, the TDS rate on interest is 10%, but only if the interest earned is more than Rs. 5000.
  • (III) Senior citizens pay a 10% TDS on FD interest. But if their total income, including FD interest, is below Rs. 5,00,000 per year, they're exempt from tax.

To avoid tax deductions on Fixed Deposit, submit either Form 15G or 15H to your bank or NBFC at the start of the financial year.

What are Corporate Fixed Deposit?

Corporate Fixed Deposit is instrument an of investment that is offered by credit worthy companies where investors can deposit a fixed amount for a specific term in exchange for a fixed interest rate. Unlike traditional banks and NBFCs, Corporations typically offer higher interest rates to attract investors with their fixed deposit schemes. Corporate FDs operate as funding sources for companies, supporting them to raise capital for various operational and growth-related needs. These deposits hold a degree of risk, as they are not insured by government agencies, so investors should evaluate the company’s credit rating and financial stability before investing.

Why should you consider investing in Fixed Deposits for corporate growth in 2025?

Higher Returns

Fixed Deposit is offered by Companies provide higher interest rates than traditional bank fixed deposits, making them an attractive investment option for those looking to earn higher returns.

Fixed Returns

Corporate Fixed Deposit offers a fixed rate of return, which means that investors can expect to earn a predetermined amount of interest on their investments. This makes it easier to plan and manage finances.

Diversification

Investing in Corporate Fixed Deposit provides diversification to an investment portfolio. It can help balance the risk-reward profile of an investor's overall portfolio.

Tenure

Fixed Deposits usually have a fixed tenure, which can range from a few months to a few years. This can help investors plan their investments and liquidity needs accordingly.

Credit rating

Companies offering corporate Fixed Deposits typically have their credit rating evaluated by credit rating agencies, which can provide investors with an indication of the creditworthiness of the company. This can help investors make more informed decisions about their investments.

How can a Fixed Deposit calculator help you?

An A Fixed Deposit calculator is a vital tool for estimating returns, comparing options, and planning finances effectively. By inputting the principal amount, tenure, and providing the Best Fixed Deposit Interest Rates, it provides accurate projections of maturity proceeds, aiding in decision-making. It also helps understand the impact of compound interest, crucial for maximizing earnings. Additionally, it facilitates comparisons between different banks and their offerings, ensuring optimal returns. Overall, an FD calculator empowers investors to make informed decisions, tailor investments to their goals, and achieve financial objectives efficiently.

Fixed Deposit Calculator

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Frequently Asked Questions (FAQs)

Fixed deposits are investment options where you put a lump sum amount with a bank or financial institution for a specified time, earning a secured interest rate. They are a safe way to increase your savings steadily over time.

Depending on the bank, NBFC, or financial institution, the Best Fixed Deposit Interest Rates in India could reach upto 8.80% p.a. An additional rate benefit is frequently provided to senior citizens.

Compare the interest rates, duration options, and additional benefits provided by various banks or NBFCs to select the best fixed deposit. Looking for competitive rates from companies like PNB Housing, Bajaj Finance, and Shriram.

A Corporate Fixed Deposit (FD) is one that companies or non-bank financial institutions (NBFCs) offer in place of conventional banks. Compared to bank FDs, these carry a marginally higher risk but frequently offer higher interest rates.

  • ● Guaranteed returns
  • ● Higher and more attractive Fixed Deposit Interest Rates than savings accounts
  • ● Flexible tenure options
  • ● Low-risk investment

Yes, Fixed Deposit Interest Rates are liable for taxation under "Income from Other Sources." However, Section 80C provides deductions for Tax-Saving FDs.

Yes, but early withdrawals could result in lower interest rates and penalties.

Several factors, like interest rates, duration, and issuer credibility, influence the Best Fixed Deposit Scheme. Evaluate various FD providers to find the best returns in 2025.

To assess and buy the Best Fixed Deposit options with affordable rates and adjustable terms, visit RR Finance.

Blogs

20 April, 2023

Maximize Your Savings with LIC Housing Finance Ltd.'s Fixed Deposits

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22 April, 2023

How investors of company Fixed deposits are protected under companies act 2013 ?

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1 May, 2023

How investors of company Fixed deposits are protected under companies act 2013 ?

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All the above terms are subject to change without any prior notice, it is advisable to confirm ROI before making the payment/investment. You are advised to independently verify the data of Investee Company and their rating from the rating agencies, RR is not liable for soundness of any investee company or investments made through it. (Disclaimer)

FD Rates of Top 5 Private Banks

Tenor Bucket Deposit less than 2 Crore
Interest Rate (per annum) **Senior Citizen Rates (per annum)
7 - 14 days 3.00% 3.50%
15 - 29 days 3.00% 3.50%
30 - 45 days 3.50% 4.00%
46 - 60 days 4.50% 5.00%
61 - 89 days 4.50% 5.00%
90 days < = 6 months 4.50% 5.00%
6 months 1 days <= 9 months 5.75% 6.25%
9 months 1 day to < 1 year 6.00% 6.50%
1 year to < 15 months 6.60% 7.10%
15 months to < 18 months 7.10% 7.60%
18 months to < 21 months 7.25% 7.75%
21 months - 2 years 7.00% 7.50%
2 years 1 day to < 2 years 11 Months 7.00% 7.50%
2 year 11 Months - 35 Months 7.15% 7.65%
2 year 11 Months 1 Days <= 3 Year 7.00% 7.50%
3 year 1 days to < 4 Years 7 Months 7.00% 7.50%
4 year 7 Months - 55 Months 7.20% 7.70%
4 year 7 Months 1 day <= 5 Years 7.00% 7.50%
5 year 1 day - 10 years 7.00% 7.50%*

Tenor Bucket Interest rates (per cent per annum) w.e.f. February 17, 2024
Single deposit of less than ₹2 Crores
General **Senior Citizen
7 - 14 days 3.00% 3.50%
15 - 29 days 3.00% 3.50%
30 - 45 days 3.50% 4.00%
46 - 60 days 4.25% 4.75%
61 - 90 days 4.50% 5.00%
91 - 120 days 4.75% 5.25%
121 -150 days 4.75% 5.25%
151 - 184 days 4.75% 5.25%
185 - 210 days 5.75% 6.25%
211 - 270 days 5.75% 6.25%
271 - 289 days 6.00% 6.50%
290 - less than 1 year 6.00% 6.50%
1 year - 389 days 6.70% 7.20%
390 days to < 15 months 6.70% 7.20%
15 months to < 18 months 7.20% 7.75%
18 months to 2 years 7.20% 7.75%
2 years 1 day to 3 years 7.00% 7.50%
3 years 1 day to 5 years 7.00% 7.50%
5 years 1 day to 10 years 6.90% 7.50%
5 Years (80C FD) – Max to 1.50 lac 7.00% 7.50%

Tenor Bucket Interest rates (per cent per annum) w.e.f. March 22, 2023
Single deposit of less than ₹20.0 million
General **Senior Citizen
7 - 14 days 2.75% 3.25%
15 - 30 days 3.00% 3.50%
31 - 45 days 3.25% 3.75%
46 - 90 days 3.50% 4.00%
91 - 120 days 4.00% 4.50%
121 - 179 days 4.25% 4.75%
180 days 7.00% 7.50%
181 days - 269 days 6.00% 6.50%
270 days 6.00% 6.50%
271 days - 363 Days 6.00% 6.50%
364 days 6.50% 7.00%
365 - 389 days 7.10% 7.60%
390 Days(12 months 25 days) 7.40% 7.90%
391 Days - less than 23 months 7.40% 7.90%
23 months 7.30% 7.85%
23 months 1 days - less than 2 Years 7.30% 7.85%
2 years - less than 3 year 7.15% 7.65%
3 year and above but less than 4 years 7.00% 7.60%
4 years and Above - less than 5 years 7.00% 7.60%
5 years - less than or equal to 10 years 6.20% 6.70%

Tenor Bucket Interest rates (per cent per annum) w.e.f. March 22, 2023
Single deposit of less than ₹20.0 million
General **Senior Citizen
7 - 14 days 3.00% 3.50%
15 - 29 days 3.00% 3.50%
30 - 45 days 3.50% 4.00%
46 - 60 days 4.25% 4.75%
61 days < 3 Months 4.75% 5.00%
3 months < 3 months 24 days 4.75% 5.25%
3 months 24 days < 4 months 4.75% 5.25%
5 months < 6 months 4.75% 5.25%
6 months < 7 months 5.75% 6.25%
7 months < 8 months 5.75% 6.25%
8 months < 9 months 5.75% 6.25%
9 months < 10 months 6.00% 6.50%
10 months < 11 months 6.00% 6.50%
11 months - 11 months 24 days 6.00% 6.50%
11 months 25 days < 1 year 6.00% 6.50%
1 year - 1 year 4 days 7.70% 7.20%
1 year 5 days - 1 year 10 days 6.70% 7.20%
1 year 11 days - 1 year 24 days 6.70% 7.20%
1 year 25 days < 13 months 6.70% 7.20%
13 months < 14 months 6.70% 7.20%
14 months < 15 months 7.70% 7.20%
15 months < 16 months 7.10% 7.60%
16 months < 17 months 7.10% 7.60%
17 months < 18 months 7.20% 7.85%
18 Months < 2 years 7.10% 7.60%
2 years < 30 months 7.10% 7.60%
30 months < 3 years 7.10% 7.60%
3 years < 5 years 7.10% 7.60%
5 years to 10 years 7.00% 7.75%

Tenor Bucket Interest rates (per cent per annum) w.e.f. 21st November, 2023
Single deposit of less than ₹2 Crore
General **Senior Citizen
7 days to 14 days 3.25% 3.75%
15 days to 45 days 3.70% 4.20%
46 days to 90 days 4.10% 4.60%
91 days to 120 days 4.75% 5.25%
121 days to 180 days 5.00% 5.50%
181 days to 271 days 6.10% 6.60%
272 days to < 1 year 6.35% 6.85%
1 year 7.25% 7.75%
1 year 1 day to < 18 months 7.50% 8.00%
18 months to < 24 months 7.75% 8.25%
24 months to < 36 months 7.25% 7.75%
36 months to < 60 months 7.25% 8.00%
60 months 7.25% 8.00%
60 months 1 day to <= 120 months 7.00% 7.75%

FD Rates of Top 5 PSU Banks

Maturity Period Interest rates (per cent per annum) w.e.f. February 15, 2023
General **Senior Citizen
7 days to 45 days 3.50% 4.00%
46 days to 179 days 5.50% 6.00%
180 days to 210 days 6.00% 6.50%
211 days to less than 1 year 6.25% 6.75%
1 Year to less than 2 years 6.80% 7.30%
2 years to less than 3 years 7.00% 7.50%
3 years to less than 5 years 6.75% 7.25%
5 years and up to 10 years 6.50% 7.50%

Maturity Period Interest rates w.e.f. February 20, 2023
General **Senior Citizen
7 to 14 days 3.50% 4.00%
15 to 29days 3.50% 4.00%
30 to 45 days 3.50% 4.00%
46 to 60 days 4.50% 5.00%
61 to 90 days 4.50% 5.00%
91 to 179 days 4.50% 5.00%
180 to 270 Days 6.00% 6.50%
271 to 299 days 6.25% 7.75%
300 days 7.05% 7.55%
301 days to less than 1 Year 6.25% 6.75%
1 year 6.75% 7.25%
above 1 year to 339 days 6.80% 7.30%
400 days 7.25% 7.75%
401 days to 2 years 6.80% 7.30%
above 2 year & upto 3 years 7.00% 7.50%
above 3 year & upto 5 years 6.50% 7.00%
above 5 years & upto 10 years 6.50% 7.30%

Note: The FD interest rates are effective as of 12 April, 2024

Tenor Bucket Interest rates w.e.f. November 14, 2022
General **Senior Citizen
7 days to 14 days 4.25% 4.75%
15 days to 45 days 4.50% 5.00%
46 days to 90 days 5.50% 6.00%
91 days to 180 days 5.60% 6.10%
181 days to 210 days 5.75% 6.25%
211 days to 270 days 6.15% 6.65%
271 days & above and less than 1 year 6.25% 6.75%
360 Days 7.10% 7.60%
1 year 6.85% 7.35%
Above 1 year to 400 days 6.85% 7.35%
Above 400 days and upto 2 Years 6.85% 7.35%
Above 2 Years and upto 3 Years 7.25% 7.75%
Above 3 Years and upto 5 Years 6.50% 7.15%
Above 5 Years and upto 10 Years 6.50% 7.50%
Above 10 years (MACT/MACADCourt Order schemes only) 6.25% 6.75%
399 Days (Baroda Tiranga Plus Deposit Scheme) 7.15% 7.65%

Tenor Bucket Interest rates w.e.f. January 18, 2023
General **Senior Citizen
7 Days to 45 Days 4.00% 4.00%
46 Days to 90 Days 5.25% 5.25%
91 Days to 179 Days 5.50% 5.50%
180 Days to 269 Days 6.15% 6.65%
270 Days to less than 1 Year 6.25% 6.75%
1 Year only 6.85% 7.35%
444 days 7.25% 7.75%
Above 1 Year to less than 2 Years 6.85% 7.35%
2 Years & above to less than 3 Years 6.85% 7.35%
3 Years & above to less than 5 Years 6.80% 7.3%
5 Years & above to 10 Years 6.70% 7.20%

Maturity Period Interest rates (per cent per annum) w.e.f. January 10, 2023
General **Senior Citizen
7 days to 14 days 3.00% 3.00%
15 days to 30 days 3.00% 3.00%
31 days to 45 days 3.00% 3.00%
46 days to 90 days 4.50% 4.50%
91 days to 179 days 4.50% 4.50%
180 days to 210 days 5.50% 6.00%
211 days to 269 days 5.50% 6.00%
270 days to less than 1 year 5.75% 6.25%
1 year 6.80% 7.30%
Above 1 Year to less than 2 Years 6.80% 7.30%
2 year 7.25% 7.75%
1 Year to less than 2 Years (except 444 Days) 6.00% 6.50%
444 days 7.05% 7.55%
2 Years to less than 3 Years 6.75% 7.25%
3 Years to less than 5 Years 6.5% 7.25%
5 Years to less than 8 Years 6.00% 6.75%
8 years & above to 10 Years 6.00% 6.75%

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