🏦 Fixed Deposits & Corporate FDs

Earn more from your savings.
Guaranteed returns, zero market risk.

Invest in high-yield corporate, NBFC, and small finance bank fixed deposits earning up to 9.10% p.a. — significantly higher than large bank FDs. Capital protection, DICGC-insured options, regular income options, and senior citizen benefits. Expert guidance at no cost to you.

Up to 9.10%
Interest rate p.a.
AAA rated
Top-rated FD issuers
+0.50%
Senior citizen benefit
₹10,000
Minimum investment

Types of fixed deposits

4 types of FDs — which one is right for you?

Not all FDs are equal. The right type depends on your risk appetite, need for liquidity, and how much return you want to earn.

Safest

Bank Fixed Deposit

Government-backed safety with DICGC insurance.

Bank FDs are offered by scheduled commercial banks. They carry the highest safety — deposits up to ₹5 lakh per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Rates are lower than corporate FDs but the risk is minimal.

Typical rate6.50% – 7.50% p.a.
DICGC insurance✅ Up to ₹5 lakh per bank
Minimum investment₹1,000 – ₹10,000
Tenure options7 days to 10 years
Premature withdrawal✅ Allowed (with penalty)

✅ Best for: Conservative investors prioritising capital safety over returns

💬 Enquire about bank FD ↗
⬆ Higher Rates

Small Finance Bank FD

DICGC-insured safety with bank-beating returns.

Small finance banks (SFBs) are RBI-regulated and offer the same DICGC insurance as large banks — protecting deposits up to ₹5 lakh per depositor. They consistently offer 0.5%–1.5% higher rates than large scheduled commercial banks, making them an excellent middle ground between safety and returns.

Typical rate7.25% – 9.00% p.a.
DICGC insurance✅ Up to ₹5 lakh per bank
Minimum investment₹1,000 – ₹5,000
Tenure options7 days to 10 years
Premature withdrawal✅ Allowed (with penalty)

✅ Best for: Investors who want higher returns than large banks without giving up DICGC safety cover

💬 Enquire about SFB FD ↗
Tax Saving

Tax-Saving Fixed Deposit

Save tax under Section 80C with guaranteed returns.

Tax-saving FDs offered by banks allow you to claim a deduction of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. They have a mandatory 5-year lock-in period with no premature withdrawal allowed. Interest earned is fully taxable at your slab rate.

Typical rate6.50% – 7.50% p.a.
Tax deduction✅ Up to ₹1.5L under Sec 80C
Lock-in period5 years (mandatory)
Premature withdrawal❌ Not allowed
Interest taxabilityTaxable at slab rate

✅ Best for: Taxpayers looking for a safe, guaranteed-return 80C investment with 5-year horizon

💬 Enquire about tax-saving FD ↗

Small Finance Banks — what you need to know

Small Finance Bank FDs — DICGC-insured, yet higher returns

Small finance banks (SFBs) are a relatively newer category of RBI-licensed banks specifically created to serve underserved segments. They offer a compelling proposition for FD investors: higher interest rates than large scheduled commercial banks, with the same DICGC deposit insurance protection up to ₹5 lakh per depositor.

Key benefit: SFB FDs are covered by DICGC insurance up to ₹5 lakh per depositor per bank — the same protection you get with SBI or HDFC Bank — while offering rates 0.75% to 2% higher than large banks. This makes them one of the most efficient risk-adjusted FD options available.

RBI-regulated, just like large banks

Small finance banks are licensed by the Reserve Bank of India and operate under the same Banking Regulation Act as scheduled commercial banks. They are subject to RBI's supervision, capital adequacy norms, and audit requirements.

DICGC insured up to ₹5 lakh

Deposits at small finance banks are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation) up to ₹5 lakh per depositor per bank — the same guarantee that applies to SBI or ICICI Bank. For amounts up to ₹5 lakh, the risk profile is equivalent to any large bank.

Higher rates than large banks

SFBs offer higher FD rates to attract deposits — typically 7.25% to 9.00% p.a. compared to 6.50%–7.25% at large banks. Senior citizen rates can go even higher. This higher rate does not mean higher risk for amounts within the ₹5 lakh DICGC limit.

Invest within the ₹5 lakh DICGC limit

To fully benefit from the DICGC insurance, keep your total deposit (principal + accrued interest) at any single SFB within ₹5 lakh. If you wish to invest a larger amount, spread across multiple SFBs or combine with corporate FDs for amounts above this threshold.

ℹ️
Sindhu's take: For conservative investors who want better-than-bank returns without stepping into corporate FDs, small finance bank FDs — within the ₹5 lakh DICGC limit — are one of the best-kept options. We help you pick the right SFB and ensure your deposit structure is optimised for safety and returns.

Indicative rates — May 2026

Top FD issuers — indicative interest rate ranges

Rates below are indicative ranges and subject to change. Ranges reflect variation across tenures and issuer revisions. We verify current rates from issuers at the time of investment. Senior citizen rates are higher by 0.25–0.50% for most issuers.

Issuer Category Credit Rating 1 Year 2–3 Years 4–5 Years Senior Citizen Extra
🏢 Corporate / NBFC Fixed Deposits
Bajaj Finance NBFC FD CRISIL AAA 7.75% – 8.10% 8.15% – 8.40% 7.90% – 8.15% +0.25%
Shriram Finance NBFC FD ICRA AA+ 8.25% – 8.60% 8.75% – 9.10% 8.75% – 9.00% +0.50%
Mahindra Finance NBFC FD CRISIL AA+ 7.50% – 7.90% 7.90% – 8.15% 7.80% – 8.05% +0.25%
PNB Housing Finance HFC FD CRISIL AA 7.40% – 7.70% 7.65% – 8.05% 7.75% – 7.95% +0.25%
🏦 Small Finance Bank Fixed Deposits (DICGC Insured)
Unity Small Finance Bank Small Finance Bank RBI Regulated 8.50% – 9.00% 8.50% – 9.00% 8.00% – 8.50% +0.50%
Utkarsh Small Finance Bank Small Finance Bank RBI Regulated 8.25% – 8.75% 8.50% – 9.10% 7.75% – 8.25% +0.50%
Jana Small Finance Bank Small Finance Bank RBI Regulated 8.00% – 8.50% 8.25% – 8.75% 7.75% – 8.25% +0.50%
ESAF Small Finance Bank Small Finance Bank RBI Regulated 7.75% – 8.25% 8.00% – 8.50% 7.50% – 8.00% +0.50%
🏛️ Scheduled Commercial Bank Fixed Deposits (DICGC Insured)
SBI Govt. Bank FD Govt. Bank 6.80% – 7.10% 6.80% – 7.00% 6.50% – 6.80% +0.50%
HDFC Bank Pvt. Bank FD Pvt. Bank 7.00% – 7.25% 7.00% – 7.25% 6.75% – 7.00% +0.50%
💡
Our recommendation: For DICGC-insured returns, Unity Small Finance Bank and Utkarsh Small Finance Bank offer some of the highest rates with full ₹5 lakh government insurance — ideal for risk-averse investors who still want to beat large bank rates. For investors comfortable with credit-rated (non-DICGC) instruments, Bajaj Finance (CRISIL AAA) and Shriram Finance (ICRA AA+) offer the best combination of high return and strong credit quality. Senior citizens should look at Shriram Finance's rates, which can go up to 9.60% p.a. (including senior citizen benefit).
⚠️
Rates are indicative and subject to change by the issuer without prior notice. Always confirm current rates at the time of investment. Past rates do not guarantee future rates.

Plan your returns

FD maturity calculator

Calculate your maturity amount, total interest earned, and effective annual yield for any FD investment. Toggle between cumulative and non-cumulative to compare payout options.

🧮 Fixed Deposit Maturity Calculator

₹6,36,853
Maturity value
Principal invested ₹5,00,000
Total interest earned ₹1,36,853
Effective annual return 8.74%
Payout frequency At maturity
Periodic payout
💬 Invest now — talk to Sindhu ↗

Choosing your payout

Cumulative vs Non-Cumulative FD — which should you choose?

The same FD, two very different cash flow profiles. Your choice depends on whether you need regular income or are accumulating wealth.

📅 Non-Cumulative FD

Non-Cumulative — best for regular income

Interest is paid out at regular intervals — monthly, quarterly, half-yearly, or annually — to your linked bank account. The principal is returned at maturity. Ideal for retirees and anyone who needs predictable monthly income.

  • ✅ Regular income — monthly / quarterly / annual payouts
  • ✅ Predictable cash flow — plan expenses with certainty
  • ✅ Ideal for retirees, senior citizens, and income-seeking investors
  • ✅ Same principal safety as cumulative FD
  • ⚠️ Lower overall returns vs cumulative (no compounding benefit)
  • ⚠️ Each payout is taxable income in that financial year
💡
Sindhu's tip: Working professionals should choose cumulative to maximise long-term wealth. Retirees and senior citizens should choose non-cumulative with monthly/quarterly payouts — it replaces a salary-like monthly income and is the backbone of many conservative retirement portfolios.

Tax implications

How FD interest is taxed — what you need to know

FD interest is fully taxable as "income from other sources" at your applicable income tax slab rate. Here is a clear breakdown of TDS rules and how to manage your tax liability.

₹40,000
TDS threshold — general
TDS at 10% is deducted if your interest income from FDs with one bank/NBFC exceeds ₹40,000 in a financial year (all FDs combined at that institution).
₹50,000
TDS threshold — senior citizens
Senior citizens (age 60+) get a higher TDS threshold of ₹50,000 per institution per year — giving them more breathing room before TDS is triggered.
10%
TDS rate (PAN furnished)
TDS is deducted at 10% if PAN is furnished. Without PAN, TDS is 20%. Remember: TDS is not your final tax — FD interest is added to your total income and taxed at your applicable slab.
ℹ️
Form 15G / 15H: If your total income is below the basic exemption limit, submit Form 15G (individuals under 60) or Form 15H (senior citizens) at the beginning of each financial year to your bank/NBFC — this prevents TDS deduction entirely. This needs to be submitted afresh every year.
⚠️
High tax bracket investors: If you are in the 30% income tax bracket, post-tax FD returns can be significantly lower than the headline rate. In such cases, consider debt mutual funds or other tax-efficient alternatives as a complement to FDs. Speak with us for a personalised comparison.

Maximise your FD returns

6 smart strategies to get more from your fixed deposits

A few smart moves can meaningfully improve your post-tax, inflation-adjusted FD returns.

FD laddering — spread across tenures

Instead of locking all your money in one long-term FD, split across 1-year, 2-year, and 3-year FDs. This ensures you have funds maturing at regular intervals (liquidity) and can reinvest at prevailing rates as each FD matures — reducing interest rate risk.

Choose corporate FDs for higher rates — safely

Corporate and NBFC FDs from AAA or AA+ rated issuers like Bajaj Finance and Shriram Finance earn 1–2% more than bank FDs. This difference on ₹10 lakh over 3 years is ₹30,000–₹60,000 extra in your pocket.

Invest in a family member's name (lower tax bracket)

If your spouse or elderly parent is in a lower tax bracket (or has no income), investing FDs in their name can legally reduce the tax on interest income. The interest will be taxed at their lower slab rate. Consult a tax advisor for clubbing provisions.

Senior citizens: always ask for the higher rate

Every bank and NBFC offers an additional 0.25–0.50% for senior citizens. Always ask for and confirm the senior citizen rate before investing — some institutions don't apply it automatically. Over a 3-year tenure on ₹10 lakh, even 0.25% extra adds ₹7,500+.

Don't auto-renew without checking rates

Many investors auto-renew FDs at maturity without checking if better rates are available elsewhere. Set a reminder 30–45 days before maturity and compare options. Rates can change significantly over even a 1–2 year period.

Spread deposits to maximise DICGC coverage

Bank FD insurance covers only ₹5 lakh per depositor per bank. If you have more than ₹5 lakh to deposit, spread it across multiple banks to ensure full DICGC coverage. Joint accounts are also covered separately up to ₹5 lakh.

Getting started

How to invest in an FD with us — 5 simple steps

We handle everything — from recommending the right issuer to completing the application — at zero cost to you.

Tell us your goal

How much you want to invest, your tenure preference, and whether you need regular income or growth. We match this to the right FD type and issuer.

We compare current rates

We check live rates from our partner issuers — Bajaj Finance, Shriram Finance, Mahindra Finance, and others — and recommend the best option for you.

Documents & KYC

We guide you through the simple KYC requirements — typically just Aadhaar, PAN, a cancelled cheque, and a passport photo. Most applications are now fully digital.

Application & payment

We submit the application on your behalf. You transfer the investment amount via NEFT/RTGS/cheque. The FD is activated within 1–2 working days.

FD certificate & tracking

You receive your FD receipt/certificate. We track your FD and remind you 30 days before maturity so you can review and decide on reinvestment.

Completely free for you

Our advisory and application support is at zero cost to you. We are compensated by the FD issuer — so our incentive is fully aligned with getting you the best deal.

Common questions

Frequently asked questions about fixed deposits

Clear answers to the questions we hear most often from FD investors.

A fixed deposit (FD) is a financial instrument where you deposit a lump sum with a bank or NBFC for a fixed tenure at a predetermined interest rate. The rate is locked in at the time of investment and does not change regardless of market movements. At maturity, you receive your principal plus accumulated interest (cumulative) or you receive interest at regular intervals during the tenure (non-cumulative). FDs are one of the safest investment options offering guaranteed, predictable returns.
Bank FDs from large scheduled commercial banks are insured by DICGC up to ₹5 lakh per depositor per bank and offer rates of 6.5%–7.5% p.a. Small finance bank (SFB) FDs are also DICGC-insured up to ₹5 lakh but offer higher rates (7.25%–9.00% p.a.) — making them a very efficient option for amounts within the insurance limit. Corporate and NBFC FDs are offered by companies like Bajaj Finance and Shriram Finance — they offer the highest rates (up to 9.10%+ p.a.) but carry credit risk and are not covered by DICGC insurance. We only recommend AAA or AA+ rated corporate FDs. Each type has its place in a well-structured FD portfolio.
Yes, small finance banks are licensed and regulated by the Reserve Bank of India. Deposits at small finance banks are fully covered by DICGC insurance up to ₹5 lakh per depositor per bank — exactly the same protection you get at SBI or HDFC Bank. For amounts within the ₹5 lakh limit, small finance bank FDs carry the same safety as any large bank FD. Their higher rates exist because SFBs are newer institutions building their deposit base, not because of higher risk. The key is to keep your total deposit (including accrued interest) within the ₹5 lakh limit per institution.
In a cumulative FD, interest is compounded quarterly and added to the principal — you receive the full amount (principal + all accumulated interest) only at maturity. The compounding effect means your effective annual return is slightly higher than the stated rate. In a non-cumulative FD, interest is paid at regular intervals (monthly, quarterly, half-yearly, or annually) to your bank account. The principal is returned at maturity. Cumulative is better for wealth building; non-cumulative is ideal for retirees and anyone who needs regular income.
Yes. Banks and NBFCs deduct TDS (Tax Deducted at Source) at 10% (with PAN) if your annual interest income from FDs at one institution exceeds ₹40,000 (₹50,000 for senior citizens). TDS is deducted even on cumulative FDs on the interest accrued each year. If your total income is below the taxable limit, submit Form 15G (below 60 years) or Form 15H (senior citizens) at the start of each financial year to avoid TDS. Remember, TDS is just advance tax — FD interest is ultimately taxed at your applicable income slab rate.
Most banks and NBFCs offer an additional 0.25% to 0.50% per annum over the standard rate for senior citizens aged 60 and above. Some issuers like Shriram Finance offer 0.50% extra, which on a 3-year FD at 9.10% (standard) gives a senior citizen rate of 9.60% p.a. — one of the highest available in the market for a well-rated instrument. Always confirm the senior citizen rate explicitly; it is not always applied automatically.
Most bank and NBFC FDs allow premature withdrawal, typically with a penalty of 0.5% to 1% deduction from the rate applicable for the tenure actually held. Tax-saving FDs (5-year lock-in) cannot be broken before maturity under any circumstances. Some NBFC FDs have a minimum holding period (often 3 months) before premature withdrawal is allowed. For corporate FDs, check the premature withdrawal terms before investing — stricter terms are common. We always brief you on these terms before you invest.
Corporate and NBFC FDs carry credit risk — they are not covered by DICGC like bank FDs. However, AAA-rated (CRISIL/ICRA/CARE) NBFCs like Bajaj Finance have an excellent track record and very low default probability. To invest safely: (1) Only invest in AAA or AA+ rated FDs; (2) Avoid concentrating too much in a single issuer — diversify across 2–3 issuers; (3) Limit corporate FD exposure to 50–60% of your total fixed income allocation; (4) Keep the rest in bank FDs for DICGC-backed safety. We follow these principles in all our recommendations.

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Free advisory · AAA-rated issuers · DICGC-insured small finance banks · Senior citizen rates · Cumulative & non-cumulative · Coimbatore

© 2026 Sid Financial Services | M. Sindhugandhimathi | AMFI Registered Mutual Fund Distributor — ARN-163820 | IRDAI Certified Point of Salesperson (PoSP) — Cert. No. DP508174 | Fixed deposit products mentioned on this page are offered by respective banks and NBFCs, not by Sid Financial Services. Sid Financial Services acts as a referral and advisory intermediary and is compensated by the FD issuer. Interest rates shown are indicative, sourced from publicly available issuer information, and are subject to change without notice. Rates mentioned are not a guarantee of the rate you will receive at the time of investment. Credit ratings are assigned by independent credit rating agencies (CRISIL, ICRA, CARE) and are subject to revision. Past ratings and credit history are not a guarantee of future performance or repayment. Corporate and NBFC fixed deposits are not covered by DICGC insurance. Investment in any financial product involves risk. Please read the issuer's FD application form and terms carefully before investing. Interest income from FDs is taxable as per the applicable income tax slab. TDS rules are as per current Income Tax Act provisions subject to change. | Regulatory disclosures | Disclaimers | Privacy policy