Best FD Interest Rates in India, 2022 – Popular Banks in India Provide Best Fixed Deposit (FD) Interest Rates

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Updated on Sep 22, 2022

Best Fixed Deposit (FD) Interest Rates in India 

Fixed Deposits or FDs are lifelines for a majority of the Indian population, in terms of their future savings and investments. Here’s taking a closer look at the best FD rates in India currently.

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Learning about the Best FD Interest Rates in India

If you are looking for the best interest rates in India, you should know that fixed deposits are completely safe and secure options. FDs have always been favoured by a majority of Indian citizens since they are not subject to market volatility or fluctuations, while ensuring seamless accumulation of savings simultaneously. You can invest in FDs as per your selected duration and get a fixed rate of interest. You can either accumulate the interest and withdraw the entire sum at maturity, or get interest payouts regularly.

Also Read: Short-Term Investment Options in India with High Returns in 2022

Best Indian Banks for Fixed Deposit (FD) with the Interest Rates, 2022

While the best fixed deposit rates have come down in recent years (parallel to the reduction in home loan interest rates), here are still some of the very best fixed deposits in India that you can check out for earning secure income on your investment:

Name of the Financial Institution Regular Interest Rate Interest Rate for Senior Citizens
ICICI Bank 2.50% to 4.40% 2.50% to 4.40%
SBI 2.90% to 5.40% 3.40% to 6.20%
Punjab National Bank 2.90% to 5.25% 3.50% to 5.75%
Canara Bank 2.90% to 5.25% 2.90% to 5.75%
Bank of Baroda 2.80% to 5.25% 3.30% to 5.75%
HDFC Bank 2.50% to 5.50% 3.00% to 6.25%
Punjab and Sind Bank 3.00% to 5.30% 3.50% to 5.60%
Axis Bank 2.50% to 5.75% 2.50% to 6.50%
IDFC Bank 2.75% to 5.75% 3.25% to 6.25%
Bank of India 2.85% to 5.05% 3.35% to 5.55%
UCO Bank 2.75% to 5.00% 3.00% to 5.50%
IndusInd Bank 2.50% to 6.00% 3.00% to 6.50%
Yes Bank 3.25% to 6.50% 3.75% to 7.25%
Indian Overseas Bank 3.40% to 5.25% 4.15% to 6.00%
Central Bank of India 2.75% to 5.00% 3.25% to 5.5%
HSBC Bank 2.25% to 4.00% 2.75% to 4.50%
Indian Bank 2.90% to 5.15% 3.40% to 5.65%
DBS Bank 2.75% to 5.50% Up to 5.50%
SBM Bank 2.50% to 6.00% 3.00% to 6.50%
Bandhan Bank 3.00% to 5.00% 3.75% to 5.75%
Deutsche Bank 1.80% to 6.25% 1.80% to 6.25%

While you check out the best FD returns in India, remember that they are subject to periodic changes. Hence, stay updated by visiting the websites of the respective banks and financial institutions.

Advantages of Fixed Deposits (FDs)

  • FDs offer returns that are secure, and guaranteed. Your rate of interest remains fixed throughout the entire duration in spite of fluctuations in the market. There are no connections to market volatility as far as fixed deposits are concerned.
  • Compounding interest will help you accumulate a sizable corpus at the time of maturity, if you do not take regular payouts and reinvest your interest income.
  • You can also use your FD to earn regular income on a monthly, quarterly, half-yearly or yearly basis which is another plus point.
  • For saving on taxes, you can choose 5-year tax-saver fixed deposits and get deductions under Section 80C.
  • Those with savings accounts in banks or financial institutions can easily set up fixed deposits by going to their branches or online. You can get the FD renewed automatically or have your maturity amount credited to your savings account in the future.

FD Interest Rates – Some Aspects Worth Noting

  • You can calculate your FD interest rate by using an online calculator. This will take several factors into account, including the FD type, i.e. quarterly/monthly payments or reinvestment, tenure of the deposit, date of opening the account, rate of interest and the amount that you will invest.
  • The rate of interest is determined on the basis of various parameters, including the tenure of the FD, the amount that you will invest, the frequency of computing your FD interest and taxation aspects.
  • The shorter your deposit term, the lower your interest rate on the FD. The longer your tenure, the higher your rate.
  • Higher amounts surpassing Rs. 1 crore will naturally get higher rates of interest.
  • Senior citizens usually get FD interest rates which are higher by 0.25-0.50% than their regular counterparts.
  • A thorough comparison is essential before finalizing your FD with any bank or financial institution.

Also Read: Best Long Term Investment Plans in India to Get Higher Returns in 2022

Conclusion 

Now that you have an idea of the best FD rates in India, you can compare between banks and then choose the best possible option for your needs. Remember to invest as per your future goals. Do not keep a high amount locked in an FD when you do not have any surplus funds in hand for exigencies. At the same time, do not put all your eggs in one basket. While FDs, since they are secure investments, should naturally make up a major part of your investment portfolio, they should be accompanied by other investment types with varying levels of risks.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

Mar 10, 2022
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