Fixed Deposit Interest Rate in Nepal (Kartik 2083): Latest FD Rates of All Banks, Tax & Real Returns

Last updated: 19 October 2026 (Kartik 2, 2083) · Rates effective from Kartik 1, 2083 · Category: Finance & NEPSE

If you are searching for the fixed deposit interest rate in Nepal right now, here is the honest short answer: for Kartik 2083, most commercial banks pay only about 2.75% to 3.20% on a 1-year FD, while the “up to 4.5%” rates you see in headlines usually need a 3 to 5 year lock-in. Development banks and finance companies pay more, with the best 1-year rate currently around 5.00%.

This guide puts every number in one place: tenure-wise rates of all 20 commercial banks, the best development bank and finance company offers, remittance FD rates, the actual tax deducted from your interest, deposit insurance, and how much you really earn after inflation. It also covers things most rate lists skip, like why the headline rate is misleading and how to build an FD ladder.

What Is a Fixed Deposit (Muddati Khata)?

A fixed deposit, called muddati khata or muddati nikshep in Nepali, is a deposit where you lock a lump sum with a bank or financial institution for a fixed period, from 3 months to 10 years or more, at a rate agreed on the day you open it. Unlike a savings account, the rate on your FD does not change during the term, even if the bank cuts its rates next month.

• Minimum amount: commonly Rs. 10,000 to Rs. 25,000 at commercial banks (Nepal Bank Limited, for example, lists Rs. 25,000 for individual FDs).
• Interest payout: monthly, quarterly or at maturity, credited to your linked savings account.
• Rate revision: banks publish new rates every Nepali month, effective from the 1st of the month. Your existing FD keeps its booked rate.
• Early withdrawal: allowed, but you usually get a lower rate for the period completed.

Why the Headline FD Rate Is Misleading

This is the biggest gap in most “FD rate in Nepal” lists. They show one number per bank, for example “NMB Bank 4.50%”. That is the bank’s highest published individual FD rate, and it usually applies only to the longest tenure. For Kartik 2083, NMB Bank’s 1-year FD pays 2.75%, not 4.50%.

When we compared the published rate sheets on Kartik 1, 2083, the gap between the headline rate and the 1-year rate was more than 1 percentage point at many banks. On a Rs. 10 lakh deposit, that is over Rs. 10,000 a year of difference between what you expect and what you get.

Fixed Deposit Interest Rates of All 20 Commercial Banks (Kartik 2083)

The table below shows individual FD rates by tenure, effective Kartik 1, 2083 (18 October 2026), sorted by the 1-year rate. The last column is the bank’s highest published individual FD rate for any tenure.

Sources: tenure-wise rates as compiled by Byajdar from bank rate sheets (as of 18 October 2026); highest published rates from BankByaj. *Nepal Bank’s figure is from its official Kartik 2083 rate sheet (individual FD above 5 up to 10 years). Rates can differ by scheme, amount and branch; confirm with the bank before depositing.

What the commercial bank numbers tell us

• The floor is 2.75%. Eight of the 20 banks pay exactly 2.75% for 1 year, which is right at the level of Nepal Rastra Bank’s standing deposit facility rate.
• The yield curve is short and flat. Going from 6 months to 2 years adds little at most banks; the jump usually comes at 3 years or longer.
• State-linked banks lead for 1 year. Nepal SBI Bank and Rastriya Banijya Bank are the top two for a 1-year term this month.

Highest FD Rates: Development Banks & Finance Companies

Class B development banks and Class C finance companies are smaller and need deposits more, so they usually pay 1 to 2 percentage points more than commercial banks. These are the strongest 1-year offers for Kartik 2083:

Chart: Best 1-year FD rates, Kartik 2083

Green = development banks and finance companies; blue/grey = commercial banks. Bar length scaled to 6%. The 20-bank average is our calculation from the table above.

Remittance Fixed Deposit Rates (Kartik 2083)

If the money comes from abroad as remittance, many banks pay a premium of roughly 1 percentage point over the normal card rate. For families receiving money from Gulf countries, Malaysia, Korea, Japan or the UK, this is often the best FD available at a commercial bank.

Source: Saral Banking Sewa Kartik list. As with normal FDs, the highest rate usually needs a longer tenure. Nepal Bank’s official sheet, for example, shows 3.76% for 3 months to 1 year and 4.75% for 5 to 10 years on remittance FDs.

Why Are FD Interest Rates So Low in Nepal in 2083?

Three years ago, individual FDs at commercial banks were paying close to 10%. Today the typical 1-year rate is under 3%. The chart below shows how far rates have fallen in the month of Kartik.

Chart: Commercial bank individual FD rates in Kartik, 2078 to 2083

Sources: Kartik 2078 rate most commercial banks paid (ShareSansar); Kartik 2080 average (MoneyMitra); Kartik 2082 average (NEPSE Trading); Kartik 2083 figures are our calculation from the 20-bank table. Methods differ slightly between years, so read this as a trend, not exact like-for-like data.

How FD rates are decided (simplified)

• Weak loan demand: businesses and households are borrowing less, so banks don’t need to compete for deposits.
• Low interbank rate: according to Ratopati, the weighted average interbank rate was 2.75% in Baishakh 2083, and the average deposit rate of commercial banks was 3.35% (development banks 3.70%, finance companies 4.59%).
• NRB support for savers: in the monetary policy for FY 2083/84, Nepal Rastra Bank kept its policy rates unchanged and said it would absorb excess liquidity at its own cost to stop interest rates from falling too far. In simple terms, 2.75% acts like a practical floor for deposit rates for now.

Tax on FD Interest in Nepal: 6% TDS, Not 5%

Many FD rate pages and calculators in Nepal still say 5% tax. That figure is out of date. Under Section 88 of the Income Tax Act, 2058, interest paid by banks, financial institutions and cooperatives to individuals on deposits is subject to 6% withholding tax (TDS). The rate was raised from 5% to 6% by the Finance Act 2080, and Baker Tilly Nepal’s tax fact sheet lists it at 6%.

• The bank deducts TDS automatically before crediting interest.
• For individuals, it is generally a final withholding tax, so you don’t add FD interest to your income tax return.
• Your annual interest or TDS certificate from the bank shows exactly what was deducted. Ask for it if you need proof of income.

The difference between 5% and 6% sounds small, but it adds up: on Rs. 25,000 of interest, it is Rs. 250 more in tax.

How Much Will You Actually Earn? (Rs. 5 Lakh Example)

Here is what a Rs. 5,00,000 FD for 1 year earns in Kartik 2083 under three realistic choices. Formula: Interest = Principal × Rate × Time, then 6% TDS on the interest.

Choosing the best finance company over a typical commercial bank earns about Rs. 10,575 more on the same Rs. 5 lakh in one year. Whether interest compounds quarterly or is simple depends on the bank and payout option, so ask how your FD is calculated.

The real return after inflation

Point-to-point inflation was 5.04% in Baishakh 2083, and NRB expects it to stay around 5.5% in FY 2083/84. Compare that with your net rate:

• Typical bank FD: 2.59% net minus about 5% inflation = roughly −2.5% real return. Your money buys less at maturity than today.
• Best finance company FD: 4.70% net minus about 5% inflation = roughly break-even.
• What this means: an FD today is a tool for safety and certainty, not for growing wealth. Use it for money you need to protect, and look elsewhere for long-term growth.

Is Your FD Safe? Deposit Insurance (DCGC) Explained

Higher rates at finance companies come with a trade-off: they are smaller and, historically, some weaker institutions have faced trouble. Your main protection is deposit insurance from the Deposit and Credit Guarantee Fund (DCGC), which insures individual deposits up to Rs. 5 lakh per depositor per institution.

Smart rule: if you have more than Rs. 5 lakh, split it across two or three institutions so every rupee stays inside the insured limit. Confirm the current coverage limit with the institution or DCGC before you deposit, as limits can be revised.

FD Laddering: A Simple Strategy for 2083

Should you lock in for 3 to 5 years to get the higher rate, or stay short in case rates rise? An FD ladder gives you both. Split your money into equal parts with different maturities. Each time one matures, reinvest it at the longest rung.

Example: Rs. 10 lakh ladder

• Money becomes available every few months, so you rarely need to break an FD early.
• If rates rise, maturing parts get reinvested at the higher rate.
• Keeping each part at or below Rs. 5 lakh per institution also keeps it within DCGC cover.

How to Choose the Best FD in Nepal: 7-Point Checklist

1. Compare the rate for your exact tenure, not the headline “up to” rate.
2. Check if you qualify for extra: remittance, senior citizen or NRN deposits often get a bonus that isn’t on the main rate sheet. Ask the branch.
3. Negotiate on large deposits. Banks may add a small premium on big amounts.
4. Ask about early withdrawal terms. Most banks pay a lower rate if you break the FD before maturity.
5. Check the interest payout. Monthly or quarterly payout suits retirees; at-maturity payout suits savers.
6. Stay within the insured limit at smaller institutions.
7. Use FD as collateral if needed. Most banks give loans against your FD, so you don’t have to break it in an emergency.

How to Open a Fixed Deposit in Nepal

Documents usually needed: citizenship certificate or national ID, passport-size photos, a savings account at the same bank (for interest credit), and your PAN if you have one. Institutional FDs need registration and tax documents.

1. Pick the institution and tenure using the tables above.
2. Open or use an existing savings account at that bank, with updated KYC.
3. Fill the FD form at the branch, or book it in the mobile banking app if your bank offers online FD.
4. Choose the interest payout option and nominee.
5. Collect the FD receipt or certificate and note the maturity date.

More banks now let you open an FD fully online. If you like digital-first banking, our guide on neo banks in Nepal explains what is available and how NRB rules apply.

FD vs Savings Account vs Shares vs SIP

With 1-year FDs barely beating savings accounts at many banks, it is worth comparing where your money fits best.

Low FD rates are one reason more Nepali savers are moving part of their money into the stock market. If you want to try it, start here:

• Learn how to start investing in the Nepal share market online, step by step.
• You will need to open a Demat account in Nepal first.
• Confused by the two accounts? Read the difference between Mero Share and a Demat account.
• Stuck at login or IPO apply? See these common Mero Share problems and their fixes.
• Before comparing a share trade with your FD return, run it through our NEPSE share calculator to see real profit after fees and tax.
• Prefer regular monthly investing? Try the SIP calculator for Nepal.

A balanced approach for many people: emergency fund in savings, money for the next 1 to 3 years in FDs, and only long-term money in shares or SIPs. Browse more in our Finance & NEPSE guides.

Frequently Asked Questions

Final Verdict

The fixed deposit interest rate in Nepal is at one of its lowest points in years. In Kartik 2083, a 1-year FD at most commercial banks pays around 2.75%, which is about 2.59% after the 6% TDS and below inflation. If you want a better FD, look at the 1-year offers of sound development banks and finance companies (around 5%), use remittance FDs if you qualify, and stay within the Rs. 5 lakh insured limit per institution.

Use FDs for safety and short-term goals, ladder them so you are never forced to break one, and keep long-term money in growth assets. Rates are revised at the start of every Nepali month, so check this page again in Mangsir.