Over ₹100L crore is invested in Indian FDs. Here's how to optimize yours.
Current Rates (2025)
SBI: 7.10%. HDFC: 7.00%. Small finance banks: 8.5-9.0%. Senior citizens get 0.25-0.75% extra.
FD Laddering Strategy
Spread ₹10L across 1-5 year FDs (₹2L each). Benefits: Regular liquidity, capture rate changes, avoid penalties.
Tax on FDs
Interest is fully taxable at slab rate. TDS: 10% if interest >₹40K/year (₹50K seniors). Submit Form 15G/15H if below taxable limit.
FD vs Other Investments
FD 7% vs PPF 7.1%: PPF wins (tax-free). FD vs equity SIP ~12%: Equity wins for 10+ year goals. FD is ideal for <3 year goals. Use our [FD Calculator](/calculators/fd-calculator) and [FD vs RD comparison](/compare/fd-vs-rd).
Tips
1. Use cumulative FDs for long-term. 2. Split across banks (₹5L DICGC insurance limit). 3. Consider small finance banks. 4. Use sweep-in FD. 5. Loan against FD instead of breaking.