Fixed deposits (FDs) are a popular and secure investment option in India, providing a guaranteed return over a fixed tenure. With numerous banks offering competitive FD rates, it can be overwhelming to choose the best option for your investment goals. In this comprehensive guide, we will explore the top banks offering the highest FD interest rates in India for 2024 and calculate the potential returns on an investment of ₹100,000.
Top Banks FD Interest Rates [2024 updated]
| Bank | Interest Rate | Tenure | Amount after 5 years |
|---|---|---|---|
| Canara Bank | 7.25% | 444 days | ₹1,35,125 |
| Axis Bank | 7.10% | 3 years | ₹1,33,125 |
| HDFC Bank | 7.00% | 5 years | ₹1,32,125 |
| IDFC First Bank | 7.00% | 5 years | ₹1,32,125 |
| Bank of Baroda | 6.50% | 5 years | ₹1,29,125 |
| SBI | 6.50% | 5 years | ₹1,29,125 |
| ICICI Bank | 6.90% | 5 years | ₹1,31,125 |
As evident from the table above, Canara Bank offers the highest interest rate of 7.25% for a 444-day FD, followed closely by Axis Bank with an interest rate of 7.10% for a 3-year FD. HDFC Bank and IDFC First Bank offer competitive rates of 7.00% for a 5-year FD, while Bank of Baroda and SBI provide a 6.50% interest rate for the same tenure. ICICI Bank offers a slightly higher rate of 6.90% for a 5-year FD.
Factors Affecting FD Interest Rates
When considering investing in an FD, it is essential to understand the factors that influence the interest rates offered by banks. These factors include:
- Type of Depositor: Senior citizens often enjoy higher interest rates compared to general citizens, as banks offer special schemes to attract this demographic.
- Deposit Amount: The amount invested in an FD can impact the interest rate, with larger deposits sometimes receiving lower rates compared to smaller deposits.
- Tenure: The length of the FD tenure plays a significant role in determining the interest rate, with longer tenures generally offering higher rates compared to shorter tenures.
- Bank’s Monetary Policy: Changes in the Reserve Bank of India’s (RBI) monetary policy, such as adjustments to the repo rate, base rate, and internal liquidity position, can directly impact the FD interest rates offered by banks.
Investing in a fixed deposit is a smart choice for those seeking a safe and predictable return on their investment. By comparing the interest rates offered by top banks in India for 2024, you can make an informed decision based on your investment goals and risk appetite. With an investment of ₹100,000, the total amount after 5 years can range from ₹1,29,125 to ₹1,35,125, depending on the bank’s FD rate. Consider the factors influencing FD interest rates and choose the best option to maximize your returns in 2024.