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Fixed deposit is a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens, various interest payment options, and no market-related risks, with income tax deductions. It is important to compare the latest fixed deposit rates among leading banks in the country before opening a new fixed deposit or renewing an existing one. Here are the latest fixed deposit rates for the year 2022.

Fixed Deposit Interest Rates of Top 10 Banks in India for below Rs.2 crore

Given below are the latest interest rates offered by top banks for tenures ranging from 7 days to 10 years as of November 2022.

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a)

State Bank of India FD

3.00% to 6.10%

3.50% to 6.90%

HDFC Bank FD

3.00% to 6.25%

3.50% to 7.00%

ICICI Bank FD

3.00% to 6.35%

3.50% to 6.95%

IDBI Bank FD

3.00% to 6.25%

3.50% to 7.00%

Kotak Mahindra Bank FD

2.75% to 6.50%

3.25% to 7.00%

RBL Bank FD

3.25% to 7.25%

3.75% to 7.75%

Punjab National Bank FD

3.50% to 7.00%

4.00% to 7.50%

Canara Bank FD

3.25% to 7.00%

3.25% to 7.50%

Axis Bank FD

3.50% to 6.50%

3.50% to 7.25%

Bank of Baroda FD

3.00% to 5.65%

3.50% to 6.65%

IDFC First Bank FD

3.50% to 7.25%

4.00% to 7.75%

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FD Rates Offered by Other Popular Banks in India for below Rs.2 crore

The fixed deposit interest rates offered by other banks in India are given below for deposits below Rs.2 crore, as of November 2022. These are for tenures ranging from 7 days to 10 years.

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

Yes Bank FD

3.25% to 6.75%

3.75% to 7.50%

IndusInd Bank FD

3.50% to 7.00%

4.25% to 7.50%

UCO Bank FD

2.55% to 5.60%

2.80% to 6.10%

Central Bank of India FD

3.00% to 6.15%

Contact the bank

Indian Bank FD

2.80% to 5.75%

2.80% to 6.50%

Indian Overseas Bank FD

3.25% to 5.85%

3.60% to 6.00%

Bandhan Bank FD

3.00% to 7.00%

3.75% to 7.50%

DBS Bank FD

2.50% to 6.50%

Contact the bank

HSBC Bank FD

2.50% to 6.00%

3.00% to 6.50%

Duetsche Bank FD

3.00% to 7.25%

3.00% to 7.25%

SBM Bank FD

4.25% to 7.70%

Contact the bank

SBI has launched Utsav fixed deposit scheme

On the occasion of Independence Day, the State Bank of India (SBI), launched a new term deposit scheme known as ‘Utsav Deposit.’ This fixed deposit offers higher interest rates and is available for a period of 75 days. SBI's Utsav Fixed Deposit Scheme offers an interest rate of 6.10% p.a. on a tenure of 1,000 days. Senior citizens will receive an additional interest rate of 0.50% p.a. These interest rates are effective from 15 September 2022.

Types of Fixed Deposits

  • Normal Fixed Deposits
  • Tax-Saving Fixed Deposits
  • Senior Citizen Fixed Deposits
  • NRI Fixed Deposits
  • Cumulative/Non-Cumulative Fixed Deposits
  • Flexi Fixed Deposits

Features of a Fixed Deposit Account

  • Safer than other investment vehicles.
  • Lets you earn interest over a fixed period of time.
  • Flexible tenures of up to 10 years.
  • No cap on the maximum deposit.
  • Additional rates for senior citizens.

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Top 10 Tax Saver FD Interest Rates

Tax-saver FDs offer a maximum deduction of Rs.1.5 lakh under Section 80C of the Income Tax Act with the maximum deposit permissible being Rs.1.5 lakh. The lock-in period is 5 years. Senior citizens are offered an additional interest rate.

These are the interest rates as of November 2022.

Name of the Tax Saving FD

For General Citizens (p.a.)

For Senior Citizens (p.a.)

SBI Bank Tax Saving FD

6.10%

6.60%

IndusInd Bank Tax Saver Scheme

6.75%

7.50%

RBL Bank Tax Saving FD

6.55%

7.05%

HDFC Bank Tax Saving FD

6.10%

6.60%

Canara Bank Tax Saving FD

6.50%

Contact the bank

Axis Bank Tax Saving FD

6.10%

6.85%

Bank of Baroda Tax Saving FD

5.65%

6.30%

IDFC First Bank Tax Saving FD

6.50%

Contact the bank

Union Bank of India Tax Saving FD

6.70%

Contact the bank

PNB Tax Saving FD

5.80% onwards

6.30% onwards

Punjab and Sind Bank Tax Saving FD

6.10%

6.60%

IDBI Bank Tax Saving FD

6.10%

6.85%

Highest Small Finance Bank FD Interest Rates for Below Rs.2 crore

Small Finance Banks also provide high interest rates on FDs. Here are the highest interest rates for deposits below Rs.2 crore for tenures ranging from 7 days to 10 years effective from November 2022.

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

Suryoday Small Finance Bank FD

4.00% to 8.01%

4.50% to 8.26%

Ujjivan Small Finance Bank FD

3.75% to 8.00%

4.25% to 8.50%

ESAF Small Finance Bank FD

4.00% to 8.00%

4.50% to 8.50%

Unity Small Finance Bank FD

4.50% to 7.80%

4.50% to 8.30%

Jana Small Finance Bank FD

2.50% to 7.55%

3.45% to 8.50%

Utkarsh Small Finance Bank FD

4.00% to 7.75%

4.75% to 8.50%

Equitas Small Finance Bank FD

3.50% to 7.50%

Contact the bank

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Top NBFCs FD Interest Rates (Non-Banking Financial Companies)

NBFCs also offer competitive interest rates on their fixed deposit accounts. Here are the highest interest rates for tenures ranging from 1 year to 5 years for deposits less than Rs.2 crore effective from November 2022.

Name of Bank

Tenure

For General Citizens (p.a.)

For Senior Citizens (p.a.)

LIC Housing Finance FD

12 months to 60 months

6.75% to 7.40% (up to deposit of Rs.20 crore for cumulative)

7.00% to 7.65% (up to deposit of Rs.20 crore for cumulative)

PNB Housing Finance FD

12 months to 120 months

6.80% to 7.55% (cumulative)

7.30% to 7.80% (cumulative)

Shriram City Union Finance FD

12 months to 60 months

Up to 8.00% (non-cumulative)

Contact the bank

Top Foreign Banks FD Interest Rates

Here are the highest interest rates for deposits below Rs.2 crore for tenures ranging from 7 days to 10 years effective from November 2022.

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

Deutsche Bank FD

3.00% to 7.25%

3.00% to 7.25%

CitiBank FD

1.85% to 6.75%

2.35% to 7.25%

DBS Bank FD

2.50% to 6.50%

3.00% to 7.00%

HSBC Bank FD

2.50% to 7.00%

3.00% to 7.50%

Standard Chartered Bank FD

2.75% to 6.25%

3.25% to 6.75%

Barclays Bank FD

4.90% to 5.93%

4.90% to 5.93%

Highest 1 Year FD Interest Rates

These are the highest 1-year FD rates offered by banks effective from November 2022:

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

IDFC First Bank

6.25%

6.75%

Bank of India

5.75%

6.25%

IDBI Bank

6.25%

6.75%

Punjab National Bank

6.30%

6.80%

Canara Bank

6.25%

6.75%

State Bank of India

6.10%

6.60%

Punjab and Sind Bank

6.10%

6.60%

Highest 2 Year FD Interest Rates

These are the highest 2-year FD rates offered by banks effective from November 2022:

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

IDFC First Bank

6.75%

7.25%

IDBI Bank

6.25%

7.00%

Union Bank of India

6.60%

Contact the bank

Canara Bank

6.25%

6.75%

Highest 3 Year FD Interest Rates

These are the highest 3-year FD rates offered by banks effective from November 2022:

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

IDFC First Bank

6.50%

7.00%

Axis Bank

6.50%

7.25%

IDBI Bank

6.10%

6.85%

State Bank of India

6.10%

6.60%

Punjab and Sind Bank

6.10%

6.60%

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Karnataka Bank Launches New FD Scheme

A new fixed deposit scheme called KBL Amrit Samriddhi scheme was launched by Karnataka Bank on the occasion of the Independence Day and mark the platinum jubilee of the day on which the country got its independence.

The bank will offer an interest rate of 6.10% on tenure of 525 days.

Best 5 Year FD Interest Rates

These are the highest 5-year FD rates offered by banks effective from November 2022:

Name of Bank

For General Citizens (p.a.)

For Senior Citizens (p.a.)

IDFC First Bank

6.50%

7.00%

Union Bank of India

6.70%

Contact the bank

IDBI Bank

6.10%

6.85%

Canara Bank

6.50%

7.00%

Axis Bank

6.50%

7.25%

State Bank of India

6.10%

6.90%

Senior Citizen Fixed Deposits

Fixed deposits for senior citizens have some features that differentiate them from fixed deposits for the general public, such as:

  • The depositor should be 60 years and above at the time of opening the fixed deposit account
  • Depending on the bank, interest rates are higher by 0.25% to 0.50%
  • The tenure is between 7 days and 10 days
  • Loan against FD can be availed
  • Penalties for premature withdrawal are the same as for the general public

Eligibility Criteria for FD investment

The following entities are eligible to open an FD account in India:

  • Indian resident
  • NRI
  • Minors
  • Senior citizens
  • Companies
  • Partnership firms
  • Individuals or joint investors
  • Societies or clubs
  • Sole proprietorship

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Documents Required for opening an FD account

The documents required for opening an FD account are as given below:

  • Proof of identity: Voter ID, PAN card, Aadhaar card, driving license, photo ration card, senior citizen ID card, etc.
  • Proof of address: Utility bills, bank statement with cheque, Post-office issued identification card or certificate, etc.

How to open a Fixed Deposit

You can open an FD in two ways: online and offline.

Online: To open an FD account online, it would be easiest to do so with the bank where you already have an account. All you have to do is use the net banking facility, fill up the online form for opening an FD, and submit it. In such cases, KYC will not be required as your bank will already have the details. You can transfer the funds through your account using the internet banking facility.

Offline: Visit the nearest branch of your bank and fill up the application form for opening an FD account. Submit it to the concerned official with the required documents. Deposit the required amount and you will receive the FD receipt.

Factors that Affect FD Interest Rates

There are many factors that affect FD interest rates, some of which are given below:

  • Deposit Tenure: The lower the tenure, the lower will be the interest rate and the higher or medium range the tenure, the higher the interest rate will be.
  • Deposit Amount: Higher deposit amounts will fetch you higher interest rates, especially bulk deposits exceeding Rs.1 crore.
  • Depositor type: Senior citizens typically get 0.25% to 0.50% additional interest rate on fixed deposits.

Fixed Deposit Interest and Income Tax

  • The income you earn on your FD is termed as Income from Other Source and it is fully taxable.
  • Banks will not deduct TDS, if your interest income from fixed deposits is less than Rs.40,000 in a year.
  • You need to submit Form 15G and Form 15H to the bank at the beginning of the financial year. Banks will not deduct TDS following the form submission.

CRISIL & ICRA Rating List for Corporate Fixed Deposits

It is beneficial to understand the credit ratings of corporate fixed deposits before you open an account. These ratings are a testament to the consistency, stability, and credibility of the companies that offer these FDs.

The CRISIL credit ratings for FDs fall under the categories as given below:

Rating

Standard

FAAA

Highest safety

FAA

High safety

FA

Adequate safety

FB

Inadequate safety

FC

High risk

FD

Default

NM

Not Meaningful

The ICRA credit ratings for FDs fall under the categories as given below (these also have positive and negative values)

Rating

Standard

MAAA

Highest credit quality

MAA

High credit quality

MA

Adequate credit quality

MB

Inadequate credit quality

MC

Risk-prone credit quality

MD

Lowest credit quality

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How to Choose the Right Fixed Deposit

Here are the factors to look into when choosing a fixed deposit:

  1. Compare the FD interest rates of different banks.
  2. Review the credibility of the lender by examining the fixed deposit’s safety rating as given by ICRA or CRISIL.
  3. Choose whether you want a cumulative or non-cumulative fixed deposit.
  4. Choose a bank that offers good customer service and a hassle-free process for opening an FD.

Advantages of Fixed Deposit

Fixed deposits have several advantages, some of which are:

  • Low risk: Market risks do not affect the returns on your fixed deposits.
  • Insurance: Your deposits are insured for up to Rs.1 lakh by the RBI.
  • Loan against FD: You can avail loans of up to 90% of your deposit amount at very low interest rates. This will usually be around 2% more than the FD interest rate.
  • Easy liquidity: In the case of an emergency, you can easily liquidate your FD and release the funds.
  • Regular income: You can get the interest sum credited as per your requirements on a monthly, quarterly, or annual basis.
  • Tax benefits: Investing in tax-saving fixed deposits will fetch you tax deductions of up to Rs.1.5 lakh in a financial year.
  • Senior citizens: Senior citizens are offered a higher interest rate compared to regular customers.
  • Earn interest on your deposits and see your wealth grow.
  • Flexible tenures.

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