Fixed deposits (FDs) remain one of the safest investment choices in India. They give steady interest and protect your money. Many banks offer higher rates today compared to the past few years. Choosing the right bank FD can help you earn better returns while keeping your savings safe.
In this post, we cover the 7 bank fixed deposits with high returns . We also explain their interest rates, tenure, and special features to help you pick the right one.
Table of Contents
Why Choose Bank Fixed Deposits?
Before we list the best FDs, let’s look at why people still trust them.
- Safety – Bank FDs carry low risk compared to stocks or mutual funds.
- Steady income – You know the rate before you invest.
- Flexible tenure – Ranges from 7 days to 10 years.
- Loan option – Banks let you take loans against your FD.
- Tax-saving option – Some FDs give tax benefits under section 80C.
FDs are best if you want safe growth with guaranteed interest.
1. State Bank of India (SBI) Fixed Deposit
SBI is India’s largest bank and a trusted choice for many.
- Interest rate: 3.50% to 7.10% (for general public)
- Senior citizens: Extra 0.50% on all tenures
- Tenure: 7 days to 10 years
- Special note: SBI offers a scheme called “SBI WeCare” for seniors with extra returns.
SBI FDs are safe and perfect for long-term savings.
2. HDFC Bank Fixed Deposit
HDFC Bank gives flexible FD options with good rates.
- Interest rate: 3.00% to 7.25%
- Senior citizens: Extra 0.75% under “Senior Citizen Care FD”
- Tenure: 7 days to 10 years
- Special note: Easy online booking and premature withdrawal allowed.
HDFC is known for quick service and reliable returns.
3. ICICI Bank Fixed Deposit
ICICI Bank is another private bank with strong FD products.
- Interest rate: 3.00% to 7.25%
- Senior citizens: Extra 0.50% to 0.75%
- Tenure: 7 days to 10 years
- Special note: ICICI offers reinvestment and traditional FD options.
The bank’s digital process makes investing simple.
4. Axis Bank Fixed Deposit
Axis Bank FDs are popular among both young and senior investors.
- Interest rate: 3.50% to 7.20%
- Senior citizens: Extra 0.75% on higher tenures
- Tenure: 7 days to 10 years
- Special note: Axis gives the “Fixed Deposit Plus” scheme with higher rates if you agree to no premature withdrawal.
This suits people who can lock funds for a fixed time.
5. Kotak Mahindra Bank Fixed Deposit
Kotak Mahindra Bank offers good FD rates with simple terms.
- Interest rate: 3.00% to 7.25%
- Senior citizens: Extra 0.60% on long tenures
- Tenure: 7 days to 10 years
- Special note: Easy auto-renewal and partial withdrawal facility.
Kotak FDs are ideal for people looking for both safety and flexibility.
6. IDFC First Bank Fixed Deposit
IDFC First Bank has been offering some of the highest FD returns in recent times.
- Interest rate: 3.50% to 7.50%
- Senior citizens: Extra 0.75%
- Tenure: 7 days to 10 years
- Special note: Attractive for small depositors with better rates on short-term FDs too.
IDFC First Bank is gaining popularity among young investors.
7. IndusInd Bank Fixed Deposit
IndusInd Bank stands out for its competitive FD rates.
- Interest rate: 3.50% to 7.75%
- Senior citizens: Extra 0.75% on higher tenures
- Tenure: 7 days to 10 years
- Special note: IndusInd allows FD booking online with flexible payout options.
It is a strong choice if you want higher returns.
Quick Comparison Table
| Bank | Max FD Rate (General) | Max FD Rate (Senior Citizens) | Tenure Range | Special Feature |
|---|---|---|---|---|
| SBI | 7.10% | 7.60% | 7 days – 10 years | SBI WeCare for seniors |
| HDFC Bank | 7.25% | 8.00% | 7 days – 10 years | Senior Citizen Care FD |
| ICICI Bank | 7.25% | 8.00% | 7 days – 10 years | Flexible payout options |
| Axis Bank | 7.20% | 7.95% | 7 days – 10 years | Fixed Deposit Plus |
| Kotak Bank | 7.25% | 7.85% | 7 days – 10 years | Partial withdrawal allowed |
| IDFC First Bank | 7.50% | 8.25% | 7 days – 10 years | Higher rates for short terms |
| IndusInd Bank | 7.75% | 8.50% | 7 days – 10 years | Flexible interest payout |
Tips to Get the Best Out of Bank FDs
- Compare rates: Always check rates from multiple banks before investing.
- Look at tenure: Longer tenure often gives higher returns.
- Senior citizens benefit: Seniors should use special FD schemes for extra interest.
- Use auto-renewal: It avoids missing out on interest after maturity.
- Split deposits: Spread money across banks to reduce risk and enjoy better liquidity.
Final Thoughts
The 7 bank fixed deposits with high returns listed here are among the best options . Each bank offers slightly different rates and features. If you want the safest choice, SBI and HDFC are strong picks. If you aim for higher returns, IDFC First Bank and IndusInd Bank are worth looking at.
Always match the FD tenure with your financial goals. Whether short term or long term, FDs remain a safe and steady way to grow your savings.
Frequently Asked Questions For 7 bank fixed deposits with high returns
Q1.Which bank FD gives the highest return ?
IndusInd Bank and IDFC First Bank currently offer some of the highest FD rates.
Q2.What is the maximum FD rate for senior citizens?
Senior citizens can get up to 8.50% in some banks like IndusInd Bank.
Q3.Are bank fixed deposits safe?
Yes, bank FDs are considered safe with guaranteed interest and capital protection.
Q4.What is the minimum tenure for a bank FD?
The minimum FD tenure starts from 7 days in most banks.
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