Fixed Deposits (FDs) are one of the most popular and safest investment tools for Nepali savers. With over 100 BFIs offering different rates every month, knowing how to compare Fixed Deposit interest rates in Nepal effectively can mean earning significantly more on your savings — without taking any additional risk.
This guide explains exactly how FD rates work in Nepal, what factors to compare, and how to use our rate tables to make the smartest decision for your money.
What Is a Fixed Deposit in Nepal?
A Fixed Deposit (also called a Term Deposit or Time Deposit) is a financial product offered by Nepal’s banks and financial institutions (BFIs) where you deposit a lump sum for a fixed period at a predetermined interest rate. In Nepal, FD tenures typically range from 3 months to 5 years, and the interest rate stays fixed throughout the term — regardless of whether rates rise or fall in the market.
Fixed Deposits in Nepal are regulated by Nepal Rastra Bank (NRB). Interest on FDs is typically paid quarterly or at maturity, depending on the product scheme.
How FD Interest Rates Are Set in Nepal
Every BFI in Nepal publishes its interest rate schedule at the start of each Nepali month. These rates are influenced by:
- NRB monetary policy: Nepal Rastra Bank’s CRR (Cash Reserve Ratio), SLR (Statutory Liquidity Ratio), and policy rates directly influence what banks can offer depositors.
- Liquidity position: When banks need more deposits, they raise their FD rates to attract funds. When they have excess liquidity, rates tend to drop.
- Competition: BFIs watch each other closely and adjust rates to remain competitive.
- NRB interest rate corridor: NRB sets a ceiling on deposit rates during tight monetary conditions.
Step-by-Step: How to Compare FD Rates in Nepal
Step 1: Decide Your Tenure
Before comparing rates, decide how long you can lock your money away. Longer tenures (1–5 years) generally earn higher rates than short-term deposits (3–6 months). In Nepal, most banks offer their peak FD rates at the 1–2 year tenure range.
Step 2: Compare by Bank Class
Nepal’s BFIs are classified into three categories by NRB:
- Class A — Commercial Banks: Largest and most stable. Generally offer slightly lower rates but highest security.
- Class B — Development Banks: Mid-tier institutions. Often offer 0.5–1% higher rates than commercial banks.
- Class C — Finance Companies: Smallest class. Can offer the highest rates but carry relatively more risk.
Use our Fixed Deposit Rate Table to compare rates across all three classes sorted by highest rate.
Step 3: Check Special Schemes
Many banks offer premium FD schemes with higher rates for specific customer segments: Senior Citizens, Women, Remittance depositors, and Staff. Always ask your bank if you qualify for these higher-rate schemes.
Step 4: Calculate Your Actual Return
Use our FD Calculator to compute your exact maturity amount and interest earned. Remember, FD interest in Nepal is subject to 5% tax deducted at source (TDS) — so factor that into your net return calculation.
Step 5: Consider the Bank’s Financial Health
A slightly higher rate from a bank with poor NPA (Non-Performing Assets) ratios may not be worth the risk. Always check our NPA data before placing a large deposit.
Which Bank Has the Best FD Rate in Nepal Right Now?
FD rates change every month, so we maintain a live updated table showing the highest FD rates by tenure and bank class. Visit our Fixed Deposit Interest Rate page for the latest Baishakh 2083 rates.
Key Things to Remember About FDs in Nepal
- FDs cannot be withdrawn before maturity without penalty. Early withdrawal typically earns 1–2% below the contracted rate.
- You can take a loan against your FD (up to 90% of the deposit value) if you need emergency funds.
- Interest income above NPR 10,000 per year is subject to 5% TDS in Nepal.
- All deposits in NRB-licensed BFIs are protected under Nepal’s Deposit and Credit Guarantee Corporation (DCGC) up to NPR 5 lakh.
Frequently Asked Questions
Which bank in Nepal offers the highest FD rate?
Rates change every month. Development Banks and Finance Companies typically offer 1–2% higher rates than Commercial Banks. Use our updated rate table to find the current highest rate by tenure.
Is FD safe in Nepal?
Yes. Deposits in NRB-licensed BFIs are protected by DCGC insurance up to NPR 5 lakh per depositor per institution. Commercial Banks (Class A) are the most secure.
How is FD interest calculated in Nepal?
FD interest in Nepal is calculated on a simple interest basis for most products, paid quarterly or at maturity. Some banks offer compound interest FDs. Use our FD Calculator for precise figures.
Can NRBs (Non-Resident Bipinnacles) open FDs in Nepal?
Yes, NRBs can open Foreign Currency FDs and Remittance Savings Accounts in Nepal. Remittance depositors often receive preferential interest rates.
| Bank | 1Y FD Rate | 3Y FD Rate | 5Y+ FD Rate |
|---|---|---|---|
| NMB Bank | 4.00% | 4.25% | 5.00% |
| NIC ASIA Bank | 4.25% | 4.25% | 4.75% |
| Nabil Bank | 4.00% | 4.00% | 4.55% (10Y+) |
| Prabhu Bank | 4.00% | 4.00% | 4.55% (10Y+) |
| Nepal Bank | 4.00% | 4.00% | 4.50% |
| Laxmi Sunrise Bank | 4.00% | 4.00% | 4.50% |
| Global IME Bank | 4.00% | 4.50% | 4.50% |
| Himalayan Bank | 3.75% | 4.00% | 4.50% |
| Everest Bank | 3.75% | 3.75% | 4.05% |
| Standard Chartered Bank | 3.75% | 3.75% | 4.10% |
NMB Bank offers Nepal's highest commercial bank FD rate at 5.00% for 5+ years in Baishakh 2083. Use our FD Calculator to compute exact maturity amounts. Source: BFI rate notices Baishakh 2083.