Which Bank has Highest Interest Rate on Fixed Deposits (2023)?

Which banks are giving the highest interest rate on bank FDs in India (2023)? This is one question that many people are looking answers for to. They want to know the best FD rates in banks and how they can get the maximum interest rate on FD in banks.

RBI has been raising repo rates and as a result, banks too have been increasing FD rates. There are chances that FD rates will increase in 2023 even higher. Bank fixed deposits (or FDs) are considered to be one of the safest savings options because of their guaranteed returns. So it is of interest to many to know which bank has the highest interest rate for fixed deposits in 2023.

So let’s see what are the latest bank FD rates and which Bank has the Highest Interest Rate for Fixed Deposits (2023).

We shall also see the highest FD interest rates in 2023 and the best FD rates for 1 year, the best FD rates for 3 years, and the best FD rates for 5 years.

Note – All the data below is updated as of Oct-Nov 2022. Since the rates can change each day, please check the bank’s website for the latest interest rates.

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Which PSU Bank has Highest Interest Rate on Fixed Deposits (2023)?

Now let’s have a look at the best fixed deposit interest rates offered by PSU banks. That is, here is a list of the highest rates of interest on FD in nationalised banks –

• Highest interest rate on fixed deposit in Bank of Baroda – Highest Fixed Deposit Interest Rate is 6.75%. The FD rate for 1-year tenure is 5.5%, FD rate for 3-year tenure is 5.55%. And FD rate for 5-year tenure is 5.65%
• Highest interest rate on fixed deposit in Bank of India – Highest Fixed Deposit Interest Rate is 7.25%. The FD rate for 1-year tenure is 5.75%, FD rate for 3-year tenure is 6.25%. And FD rate for 5-year tenure is 5.75%
• Highest interest rate on fixed deposit in Bank of Maharashtra – Highest Fixed Deposit Interest Rate is 5.7%. The FD rate for 1-year tenure is 5.4%, FD rate for 3-year tenure is 5.5%. And FD rate for 5-year tenure is 5.5%
• Highest interest rate on fixed deposit in Canara Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 6.25%, FD rate for 3-year tenure is 6.5%. And FD rate for 5-year tenure is 6.5%
• Highest interest rate on fixed deposit in Central Bank of India – Highest Fixed Deposit Interest Rate is 6.25%. The FD rate for 1-year tenure is 5.55%, FD rate for 3-year tenure is 5.5%. And FD rate for 5-year tenure is 5.6%
• Highest interest rate on fixed deposit in Indian Bank – Highest Fixed Deposit Interest Rate is 6.5%. The FD rate for 1-year tenure is 6.1%, FD rate for 3-year tenure is 6.4%. And FD rate for 5-year tenure is 6.4%
• Highest interest rate on fixed deposit in Indian Overseas Bank – Highest Fixed Deposit Interest Rate is 6%. The FD rate for 1-year tenure is 5.7%, FD rate for 3-year tenure is 5.85%. And FD rate for 5-year tenure is 5.85%
• Highest interest rate on fixed deposit in Punjab & Sind Bank – Highest Fixed Deposit Interest Rate is 5.8%. The FD rate for 1-year tenure is 5.65%, FD rate for 3-year tenure is 5.75%. And FD rate for 5-year tenure is 5.75%
• Highest interest rate on fixed deposit in Punjab National Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 6.3%, FD rate for 3-year tenure is 6.25%. And FD rate for 5-year tenure is 6.1%
• Highest interest rate on fixed deposit in State Bank of India (SBI) – Highest Fixed Deposit Interest Rate is 6.25%. The FD rate for 1-year tenure is 6.1%, FD rate for 3-year tenure is 6.1%. And FD rate for 5-year tenure is 6.1%
• Highest interest rate on fixed deposit in UCO Bank – Highest Fixed Deposit Interest Rate is 5.6%. The FD rate for 1-year tenure is 5.3%, FD rate for 3-year tenure is 5.3%. And FD rate for 5-year tenure is 5.3%
• Highest interest rate on fixed deposit in Union Bank of India – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 6.3%, FD rate for 3-year tenure is 6.7%. And FD rate for 5-year tenure is 6.7%

Which Private Bank has Highest Interest Rate on Fixed Deposits (2023)?

Now let’s have a look at the best fixed deposit interest rates offered by Private banks of India. That is, here is a list of highest rate of interest on FD in private banks –

• Highest interest rate on fixed deposit in Axis Bank – Highest Fixed Deposit Interest Rate is 6.2%. The FD rate for 1-year tenure is 6.1%, FD rate for 3-year tenure is 6.1%. And FD rate for 5-year tenure is 6.1%
• Highest interest rate on fixed deposit in Bandhan Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 7%, FD rate for 3-year tenure is 7%. And FD rate for 5-year tenure is 5.6%
• Highest interest rate on fixed deposit in City Union Bank – Highest Fixed Deposit Interest Rate is 7.1%. The FD rate for 1-year tenure is 6.25%, FD rate for 3-year tenure is 7%. And FD rate for 5-year tenure is 6.9%
• Highest interest rate on fixed deposit in CSB Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 5%, FD rate for 3-year tenure is 5.75%. And FD rate for 5-year tenure is 5.75%
• Highest interest rate on fixed deposit in DBS Bank – Highest Fixed Deposit Interest Rate is 6.5%. The FD rate for 1-year tenure is 6%, FD rate for 3-year tenure is 6.25%. And FD rate for 5-year tenure is 6.25%
• Highest interest rate on fixed deposit in DCB Bank – Highest Fixed Deposit Interest Rate is 7.5%. The FD rate for 1-year tenure is 6.75%, FD rate for 3-year tenure is 7.5%. And FD rate for 5-year tenure is 7.25%
• Highest interest rate on fixed deposit in Dhanlaxmi Bank – Highest Fixed Deposit Interest Rate is 6.25%. The FD rate for 1-year tenure is 5.6%, FD rate for 3-year tenure is 6%. And FD rate for 5-year tenure is 6.1%
• Highest interest rate on fixed deposit in Federal Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 5.6%, FD rate for 3-year tenure is 6%. And FD rate for 5-year tenure is 6%
• Highest interest rate on fixed deposit in HDFC Bank – Highest Fixed Deposit Interest Rate is 6.25%. The FD rate for 1-year tenure is 6.1%, FD rate for 3-year tenure is 6.25%. And FD rate for 5-year tenure is 6.25%
• Highest interest rate on fixed deposit in ICICI Bank – Highest Fixed Deposit Interest Rate is 6.35%. The FD rate for 1-year tenure is 6.1%, FD rate for 3-year tenure is 6.2%. And FD rate for 5-year tenure is 6.35%
• Highest interest rate on fixed deposit in IDBI Bank – Highest Fixed Deposit Interest Rate is 6.1%. The FD rate for 1-year tenure is 6%, FD rate for 3-year tenure is 6%. And FD rate for 5-year tenure is 5.8%
• Highest interest rate on fixed deposit in IDFC First Bank – Highest Fixed Deposit Interest Rate is 7.25%. The FD rate for 1-year tenure is 6.25%, FD rate for 3-year tenure is 6.5%. And FD rate for 5-year tenure is 6.5%
• Highest interest rate on fixed deposit in IndusInd Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 6.25%, FD rate for 3-year tenure is 6.75%. And FD rate for 5-year tenure is 6.75%
• Highest interest rate on fixed deposit in Jammu & Kashmir Bank – Highest Fixed Deposit Interest Rate is 6.25%. The FD rate for 1-year tenure is 6.25%, FD rate for 3-year tenure is 5.75%. And FD rate for 5-year tenure is 6%
• Highest interest rate on fixed deposit in Karnataka Bank – Highest Fixed Deposit Interest Rate is 6.4%. The FD rate for 1-year tenure is 6.4%, FD rate for 3-year tenure is 5.75%. And FD rate for 5-year tenure is 5.75%
• Highest interest rate on fixed deposit in Karur Vysya Bank – Highest Fixed Deposit Interest Rate is 6.5%. The FD rate for 1-year tenure is 6.3%, FD rate for 3-year tenure is 6.1%. And FD rate for 5-year tenure is 6.1%
• Highest interest rate on fixed deposit in Kotak Mahindra Bank – Highest Fixed Deposit Interest Rate is 6.3%. The FD rate for 1-year tenure is 6.1%, FD rate for 3-year tenure is 6.25%. And FD rate for 5-year tenure is 6.2%
• Highest interest rate on fixed deposit in Nainital Bank – Highest Fixed Deposit Interest Rate is 6.05%. The FD rate for 1-year tenure is 5.75%, FD rate for 3-year tenure is 5.6%. And FD rate for 5-year tenure is 5.6%
• Highest interest rate on fixed deposit in RBL Bank – Highest Fixed Deposit Interest Rate is 7.25%. The FD rate for 1-year tenure is 6.5%, FD rate for 3-year tenure is 6.55%. And FD rate for 5-year tenure is 6.55%
• Highest interest rate on fixed deposit in SBM Bank India – Highest Fixed Deposit Interest Rate is 7.7%. The FD rate for 1-year tenure is 6.4%, FD rate for 3-year tenure is 6.4%. And FD rate for 5-year tenure is 6.15%
• Highest interest rate on fixed deposit in South Indian Bank – Highest Fixed Deposit Interest Rate is 7%. The FD rate for 1-year tenure is 6.4%, FD rate for 3-year tenure is 5.9%. And FD rate for 5-year tenure is 6%
• Highest interest rate on fixed deposit in Tamilnad Mercantile Bank – Highest Fixed Deposit Interest Rate is 5.75%. The FD rate for 1-year tenure is 5.5%, FD rate for 3-year tenure is 5.75%. And FD rate for 5-year tenure is 5.75%
• Highest interest rate on fixed deposit in Yes Bank – Highest Fixed Deposit Interest Rate is 7.25%. The FD rate for 1-year tenure is 6.25%, FD rate for 3-year tenure is 6.75%. And FD rate for 5-year tenure is 6.75%

Which Small Finance Bank has Highest Interest Rate on Fixed Deposits (2023)?

Now let’s have a look at the best fixed deposit interest rates offered by small finance banks of India.

Important Reading – Should you invest in FDs of Small Finance Banks?

That is, here is a list of highest rate of interest on FD in these smaller banks –

• Highest interest rate on fixed deposit in AU Small Finance Bank – Highest Fixed Deposit Interest Rate is 7.5%. The FD rate for 1-year tenure is 5.85%, FD rate for 3-year tenure is 7.5%. And FD rate for 5-year tenure is 6.95%
• Highest interest rate on fixed deposit in Equitas Small Finance Bank – Highest Fixed Deposit Interest Rate is 7.5%. The FD rate for 1-year tenure is 7.1%, FD rate for 3-year tenure is 7.4%. And FD rate for 5-year tenure is 6.75%
• Highest interest rate on fixed deposit in Fincare Small Finance Bank – Highest Fixed Deposit Interest Rate is 7.75%. The FD rate for 1-year tenure is 6.75%, FD rate for 3-year tenure is 7%. And FD rate for 5-year tenure is 7%
• Highest interest rate on fixed deposit in Jana Small Finance Bank – Highest Fixed Deposit Interest Rate is 7.55%. The FD rate for 1-year tenure is 7%, FD rate for 3-year tenure is 7.55%. And FD rate for 5-year tenure is 7.25%
• Highest interest rate on fixed deposit in Suryoday Small Finance Bank – Highest Fixed Deposit Interest Rate is 8.01%. The FD rate for 1-year tenure is 7%, FD rate for 3-year tenure is 7.25%. And FD rate for 5-year tenure is 6.75%
• Highest interest rate on fixed deposit in Ujjivan Small Finance Bank – Highest Fixed Deposit Interest Rate is 7.5%. The FD rate for 1-year tenure is 7%, FD rate for 3-year tenure is 6.5%. And FD rate for 5-year tenure is 7.2%
• Highest interest rate on fixed deposit in Utkarsh Small Finance Bank – Highest Fixed Deposit Interest Rate is 7.75%. The FD rate for 1-year tenure is 7.15%, FD rate for 3-year tenure is 7.5%. And FD rate for 5-year tenure is 7.5%

So these are the latest FD rates offered by all the banks in India (2023).

Now as you can see from the above, many small and new banks offer higher interest rates on FDs to customers as compared to other top banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, etc. to name a few. But where there is a comparatively higher return, it means there is higher risk as well.

So while most people don’t even think about losing capital or the bank’s own solvency issues when making fixed deposits, you should give it some thought if you have a large amount to park in bank FDs. Do not blindly go with the bank which pays the highest interest rate. Do read more about which are safest banks for fixed deposits in India?

If you have a large enough FD portfolio and are looking for the best-fixed deposit interest rates in 2023, then instead of going for the bank giving the maximum interest rate on FD, try to spread your fixed deposits across a few banks. Major chunks in the safest ones. And some in others which most probably offer higher FD interest rates than bigger banks.

Also, instead of making one large FD, make a few smaller ones. You can even make a ladder of fixed deposits maturing at regular intervals to handle reinvestment risk. Laddering bank FDs is one strategy to optimize your FD returns in a rising interest rate scenario.

At times, banks occasionally launch limited-period special deposits for senior citizens which pay comparatively higher interest rates. Even those from the larger banks can also be good bets for senior citizens or retirees. By the way, if you are a senior citizen, then you have other decent options as well. You can read Best Interest Income Options for Senior citizens to know more.

Note – If you are looking for monthly interest from fixed deposits, then you may like to read monthly interest Rs 1 crore fixed deposit OR monthly interest Rs 2 crore fixed deposit OR monthly interest Rs 50 lakh fixed deposit.

If you understand how to pick debt funds properly, then even debt funds can be a good option for many as a sort of replacement of fixed deposits. But debt funds are not risk-free. So understand what debt funds are not and have the right expectations from debt funds before you invest in it. But do understand bank FD interest taxation and how debt funds win in this aspect as debt fund taxation is very different.

So that was the latest updated best FD rates in bank (2023) data and analysis of which bank has the highest interest rate for fixed deposits. I hope this post would have given you a good idea about fixed deposit interest rates by different banks and more importantly, which bank offers the highest FD rates in India (2023).