How to choose the right FD tenure (and get a better rate)
The best FD rate is usually not at the longest tenure. Compare banks by tenure and split your money into a ladder.
Many people pick 5 years by default. But banks often pay their highest rate on a middle tenure, such as 15 months to 3 years.
Compare by tenure
Our pages for the best 1-year FD rates, best 3-year FD rates and best 5-year FD rates list each bank's rate for that exact tenure, updated every night from bank websites.
Build an FD ladder
Instead of one big FD, split your money into 3–5 FDs maturing one year apart. You get money back every year, you can reinvest at newer rates, and you don't break a big FD in an emergency.
Safety and tax
- Deposits in each bank are insured by DICGC up to ₹5 lakh per depositor (principal plus interest).
- Small finance banks often pay more, but carry more risk than large banks.
- FD interest is taxable at your slab rate, and banks deduct TDS above a yearly limit.
Calculate your maturity
₹1 lakh at 7% for 3 years with quarterly compounding grows to about ₹1,23,144.
This article is general information, not personal financial advice. Rules and rates change; check the latest before you act.