A Fixed Deposit is widely regarded as a stable investment option for individuals seeking steady returns with relatively low risk. Understanding applicable fd rates across tenures and deposit amounts can help you align your savings with your financial goals. By reviewing current rates and key terms, investors can make informed and structured decisions.
FD Rates for Deposits Below ₹3 Crore
For domestic deposits less than ₹3 crore (applicable from 17th December 2025), fd rates vary based on tenure. Short-term tenures such as 7–14 days offer 2.75% per annum, while mid-range tenures such as 18 months to 21 months and 21 months to 2 years offer 6.45% per annum. For longer tenures between 5 years 1 day and 10 years, the rate stands at 6.15% per annum. Senior Citizens are eligible for an additional premium over the regular rates for resident deposits.
FD Rates for Deposits Between ₹3 Crore And ₹5 Crore
For deposits greater than or equal to ₹3 crore but less than ₹5 crore (applicable from 27th October 2025), interest rates differ slightly. For example, the 18 months to 21 months tenure offers 6.40% per annum, while 3 years 1 day to 5 years offers 6.35% per annum. Interest rates are subject to change without prior notice, and the applicable rate is determined on the date and time of receipt of funds.
Senior Citizen Benefits
Resident individuals aged 60 years and above qualify for higher fd rates. For example, in the 18 months to 21 months category (less than ₹3 crore), the regular rate is 6.45% while the Senior Citizen rate is 6.95% per annum. Senior Citizen rates are applicable only to Resident Individuals and do not apply to NRIs.
How interest is Calculated on a Fixed Deposit
For a Fixed Deposit with a tenure of up to 6 months, Simple Interest is paid. For tenures exceeding 6 months, interest payout options include monthly, quarterly, or cumulative reinvestment. Under the Reinvestment option, quarterly interest is added to the principal, and subsequent interest is calculated on the enhanced amount. Interest is computed based on the actual number of days in a year.
Minimum Tenure And Premature Withdrawal
The minimum tenure required to earn interest on a Fixed Deposit is 7 days. For premature withdrawal (effective July 22, 2023), the applicable interest rate will be 1% lower than the rate on the date of booking for the period the deposit remained with the bank. For NRE deposits, no interest is paid if withdrawn before 1 year.
Conclusion
A Fixed Deposit continues to be a structured savings tool offering defined returns across varied tenures. By carefully comparing fd rates and understanding associated terms, investors can select a deposit that matches their liquidity needs and long-term financial objectives while maintaining capital stability.
