Latest Bank Fixed Deposit (FD) Interest Rates 2018

By | October 31, 2016

What is the current bank fixed deposit interest rates 2016? If you don’t know then this post will help you to find out the best FD scheme with highest return. I am also going to share some facts about fixed deposit schemes in this article so that one can have enough information before investing.

What is a FD or Fixed Deposit scheme

Fixed deposit schemes are one of the best debt investment option. Not only that, if you are planning to invest for short term for guaranteed return, then bank FDs are best way to invest money in India. Generally banks are investing your money to security bonds, Govt assets so that the return can be guaranteed & risk free.

But the return will not be much high. Although you can see a FD might offer 8% interest rate, but this is not the real return. If you don’t know how to calculate the real return of FD scheme, then let me tell you how much a bank FD can return in real term.

Real Return = FD Interest rate – Inflation – Income tax.

Bank FDs also attract TDS or tax deducted at source on monthly basis. In case your earning is not taxable, then you have to submit either 15G or 15H form to stop the TDS deduction. But inflation will be applied and considering all of these factors a FD may return 1-2% max in real time.

Latest bank fixed deposit interest rates in India 2016

Considering an investment of Rs 10,000 for selected tenure in Bank Fixed deposit. You will find out how much the return will be after the time mentioned in the last column.

Top 5 FDs for 1 year block

Bank NameInterest RateFinal Return
RBL Bank8.0010,824
IDFC Bank7.7510,798
DCB Bank7.7010,793
Lakshmi Vilas Bank7.7010,793
City Union Bank7.7010,793

Top 5 FDs for 2 year block

Bank NameInterest RateFinal Return
RBL Bank8.2511,774
DCB Bank7.9011,694
IDFC Bank7.7511,659
Lakshmi Vilas Bank7.5011,602
South Indian Bank7.5011,602

Top 5 FDs for 3 year block

Bank NameInterest RateFinal Return
RBL Bank8.0012,682
DCB Bank7.9012,645
Federal Bank7.6012,534
Lakshmi Vilas Bank7.5012,497
UCO Bank7.5012,497

Top 5 FDs for 5 year block

Bank NameInterest RateFinal Return
RBL Bank8.0014,859
DCB Bank7.9014,787
IDFC Bank7.5014,499
State Bank of Mysore7.4514,464
Lakshmi Vilas Bank7.4014,428

You can easily verify the data by directly visiting the bank website, as the rate of interest is a variable and subject to change as per terms of banks. So better to reply on accurate data from banks only.

In case you are ready to take more risk, then corporate FD schemes are quite better as they offer good return comparatively. But again, you should have enough knowledge about such deposit schemes and how to analyse them. Otherwise a Bank FD or recurring deposit is good for a short term investment horizon like 1 – 2 year max. At least better to keep the money idle in savings account.

So, in which FDs you have invested your money and how much return you got so far? What are the bank FD alternatives according to you? Would you like to share your experience of any suggestions to make this article worthy for the readers.

4 thoughts on “Latest Bank Fixed Deposit (FD) Interest Rates 2018

  1. RafaelVecy

    Potential higher returns from other types of investments. Since online savings accounts aren t offering the best interest rates right now, you could potentially do better by putting your money elsewhere. However, that would require more risk, too, which is something you ll want to avoid when it comes to short-term investing.

    1. Santanu Post author

      Thanks for your inputs. FDs are good for achieving short term goals with guaranteed return in case you are not ready to take more risk on investment.

  2. maloy dutta

    So far as I know,there are many other schemes to earn more compared to FD.But all these are associated with risk.
    Not only that TDS makes your extra income white.

    1. Santanu Post author

      Thanks Maloy for your inputs.
      Yes, if one is ready to take risks then there are many good options like direct stocks, peer to peer landing etc. Regarding TDS, one need to declare about FD interest income while filing ITR and also file 15G or 15H to avoid TDS.


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