Fixed Deposit Interest Rates 2022

Fixed deposit are 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 January 2022.

Updated on - 23 Jan 2022

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
State Bank of India FD 5.30% to 5.40% 5.80% to 6.20%
HDFC Bank FD 2.50% to 5.60% 3.00% to 6.35%
Punjab National Bank FD 2.90% to 5.25% 3.50% to 5.75%
Canara Bank FD 2.90% to 5.40% 2.90% to 5.90%
Axis Bank FD 2.50% to 5.75% 2.50% to 6.50%
Bank of Baroda FD 2.80% to 5.25% 3.30% to 6.25%
IDFC Bank FD 2.50% to 6.00% 3.00% to 6.50%
Bank of India FD 2.85% to 5.05% 3.35% to 5.55%
Punjab and Sind Bank FD 3.00% to 5.30% 3.50% to 5.80%

Best FD Rates in India among Top 10 Banks

  • Axis Bank offers the highest FD interest rate of 5.75% p.a. which is for a tenure of 5 years and above for the general public. For senior citizens, the interest rate is up to 6.50%.
  • The second highest interest rate is 5.60% p.a. which is offered by HDFC Bank for a tenure of 5 years and above.
  • The third highest interest rate being offered is 5.40% p.a. which is offered by SBI for a tenure of 5 years and above.

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 January 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 6.25% 3.75% to 7.25%
IndusInd Bank FD 2.50% to 6.00% 3.00% to 6.50%
UCO Bank FD 2.55% to 5.05% 3.80% to 6.30%
United Bank of India FD (now Punjab National Bank) 2.90% to 5.25% 3.40% to 5.75%
Allahabad Bank FD (now Indian Bank) 2.90% to 5.15% 3.40% to 5.65%
Central Bank of India FD 2.75% to 5.00% 2.90% to 3.25%
Indian Bank FD 2.90% to 5.15% 3.40% to 5.65%
Indian Overseas Bank FD 3.40% to 5.20% 3.90% to 5.70%
Bandhan Bank FD 3.00% to 5.00% 3.75% to 5.75%
DBS Bank FD 2.50% to 5.50% 3.50%to 6.00%
Andhra Bank FD (now Union Bank) 3.00% to 5.50% 3.50% to 6.00%
HSBC Bank FD 2.25% to 4.00% 2.75% to 4.50%
Syndicate Bank FD (now Canara Bank) 2.90% to 5.25% 2.90% to 5.75%
Duetsche Bank FD 1.80% to 6.25% 1.80% to 6.25%
SBM Bank FD 2.50% to 6.00% 3.00% to 6.50%

Best FD Rates in India among Popular Banks

  • The highest FD rate among the popular banks in India is 6.50% p.a. which is given by YES Bank for tenures ranging from 5 years to 10 years for the general public.
  • For senior citizens, the highest FD rate among popular banks in India is 7.25% given by Yes Bank for tenure ranging from 5 years and 10 years.

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 0.50% additional interest rate.

These are the interest rates as of January 2022.

Name of the Tax Saving FD For General Citizens (p.a.) For Senior Citizens (p.a.)
SBI Bank Tax Saving FD 5.30% 5.80%
IndusInd Bank Tax Saver Scheme 6.00% 6.50%
HDFC Bank Tax Saving FD 5.35% 5.85%
Canara Bank Tax Saving FD 5.25% 5.75%
Axis Bank Tax Saving FD 5.40% 6.05%
Bank of Baroda Tax Saving FD 5.25% 5.75%
IDFC Bank Tax Saving FD 5.25% 5.75%
Union Bank of India Tax Saving FD 5.40% 5.90%
PNB Tax Saving FD 5.25% 5.75%
IDFC First Bank 5.25% 5.75%
Punjab and Sind Bank 5.30% 5.80%

Best Tax Saver FD Interest Rates

  • The highest interest rate on Tax Saver FDs for the general public is being offered by IndusInd Bank at 6.00% p.a.
  • Axis Bank and Union Bank of India offer the second-highest interest rates for the general public at 5.40% p.a.
  • For senior citizens, the highest interest rate is 6.50% p.a. offered by IndusInd Bank and 6.05% offered by Axis Bank.

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 January 2022.

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
Jana Small Finance Bank FD 2.50% to 6.00% 3.00% to 6.50%
Utkarsh Small Finance Bank FD 3.00% to 6.00% 3.50% to 6.50%
Equitas Small Finance Bank FD 3.50% to 6.50% 4.00% to 7.00%

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 January 2022.

Name of Bank Tenure For General Citizens (p.a.) For Senior Citizens (p.a.)
LIC Housing Finance FD 12 months to 60 months 5.25% to 5.75% 5.50% to 6.00%
PNB Housing Finance FD 12 months to 120 months 5.75% to 9.40% 6.15% to 6.95%
Shriram City Union Finance FD 12 months to 60 months Up to 7.75% Up to 8.05%

Highest 1 Year FD Interest Rates

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

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 4.50% 5.00%
Bank of India 4.35% 4.85%
Punjab National Bank 4.40% 4.90%
Canara Bank 4.40% 4.90%
State Bank of India 4.40% 4.90%
Punjab and Sind Bank 4.50% 5.00%

Highest 2 Year FD Interest Rates

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

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 4.75% 5.25%
Union Bank of India 5.10% 5.60%
Canara Bank 5.10% 5.60%

Highest 3 Year FD Interest Rates

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

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.00% 5.00%
Axis Bank 5.40% 5.90%
State Bank of India 5.10% 5.60%
Punjab and Sind Bank 5.15% 5.65%

Best 5 Year FD Interest Rates

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

Name of Bank For General Citizens (p.a.) For Senior Citizens (p.a)
IDFC First Bank 5.20% 5.70%
Union Bank of India 5.40% 5.90%
Canara Bank 5.25% 5.75%
Axis Bank 5.40% 6.05%
State Bank of India 5.40% 5.90%

Flexi Fixed Deposit/Auto-Sweep Facility

Flexi Fixed Deposits offer the combined benefits of a fixed deposit (with its assured and safe returns) with the easy liquidity of savings and current accounts. These are the interest rates offered by banks in the Flexi Fixed Deposit in India effective from January 2022:

Name of Bank Tenure For General Citizens (p.a.) For Senior Citizens (p.a.)
State Bank of India 5 years to 7 years 5.40% 6.20%
Axis Bank 6 months to 5 years 4.40% to 5.40% 4.65% to 5.90%

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

3 Special Fixed Deposit Schemes for Senior Citizens, Extended till 31 March 2022

IIn order to ensure that the interest income of senior citizens during the coronavirus pandemic, special fixed deposit schemes were introduced which offered additional 50 basis points. The special FD schemes that are provided to senior citizens by Bank of Baroda, HDFC Bank, and State Bank of India (SBI) have been extended until 31 March 2022. Earlier, the schemes were valid till 30 September 2021. The schemes were introduced in May 2020 and were provided to senior citizens who open an FD account with a tenure of 5 years and above.

These are the banks that offer these special FD schemes for senior citizens:

  • State Bank of India: SBI's Wecare Deposit offers an additional 30 basis points, over and above the additional 50 basis points for senior citizens, for tenures of 5 years to 10 years, compared to the card rate for the general public. The interest rate applicable under this FD scheme is 6.20% p.a.
  • HDFC Bank: The bank's Senior Citizen Care FD offers 75 basis points additional interest rate which is now 6.25% p.a. under this scheme. The additional premium of 0.25% p.a. over and above the 0.50% additional interest rate for senior citizens is applicable till 31 March 2022.
  • Bank of Baroda: The bank offers additional interest rate of 0.50% higher for all tenors up to 5 years. It also offers 1.00% more for deposits over 5 years and up to 10 years valid up to 31 March 2022.

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 Rate Calculator

The interest you can earn on your deposited amount depends on multiple factors, including the amount invested, tenure, rate of interest, interest computation frequency, and taxation. You can calculate the returns on your investment by using an FD calculator. The entire process of calculating the amount is easy and hassle-free. All you need to do is enter the deposit term, choose the type of FD (reinvestment, quarterly, or monthly payment), the investment amount, the date of account opening, and the interest rate.

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 with 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

FAQs on Fixed Deposit Interest Rates

  1. What is the minimum period for a fixed deposit?

    A fixed deposit account can be opened for a minimum period of 7 days.

  2. What is the minimum amount that can be deposited in an FD account?

    The minimum amount varies from bank to bank. It can be as low as Rs.50.

  3. Can I get monthly interest on a fixed deposit?

    Yes, you can get a monthly interest payout on your fixed deposit.

  4. Is FD a good investment?

    Investing in fixed deposits is one of the safest investment options available. The interest offered on FDs by banks makes it a good option.

  5. Can I prematurely withdraw from a Tax Saver Term Deposit?

    No, you can prematurely withdraw a tax saver term deposit as it has a lock-in period of 5 years.

  6. What is the maximum duration for which a FD account can be opened?

    You can open a fixed deposit account for a maximum period of 10 years.

  7. Do all NBFCs offer the option of opening a FD account with them for a period of 10 years?

    No, not all NBFCs offer you open of opening a FD for a period of 10 years.

  8. What is maximum exemption that I can get under tax saver FDs?

    Under tax saver FDs, the maximum exemption you can get is Rs.1.5 lakh.

  9. Under which section of the Income Tax Act is the tax benefit offered on tax saver FDs?

    The tax benefit is offered under Section 80C of the Income Tax Act, 1961.

  10. Do banks charge a penalty for premature withdrawal of FD?

    Yes, banks charge a penalty for premature withdrawal of a FD.

  11. How can I get the maximum returns from my fixed deposit?

    To get the maximum returns on your fixed deposit, compare the fixed deposit rates among different tenures in the same bank and among different banks. Make sure that it is not too short nor too long.

Read News About Fixed Deposit Rates

  • Fixed Deposit interest rates revised by Canara Bank

    Canara Bank has revised the Fixed Deposit (FD) interest rates for any investments less than Rs.2 crore. The new rates will be effective from 17 January 2022. An additional 0.10% is provided on FDs that come with a tenure of 1,111 days. The bank also offers a 75 months scheme known as Canara Amrit – 75 comes with an 0.15% additional interest rate above the periodic rate.

    20 January 2022

  • Banks propose cut in FD tenure as budget date nears

    Banks in India are proposing cuts in fixed deposit (FD) tenures as the date for the Union Budget 2022 nears which will be presented by the Finance Minister Nirmala Sitharaman on 1 February. Banks believe that lowering the tenure to three years will also help the customers avail tax benefits.

    A representative from Indian Bank Association (IBA) said that as compared to products like ELSS, tax saving FD schemes are becoming less attractive and as such if the lock-in period is reduced then it might attract more customers to invest their money in tax-saver FD schemes making it profitable for banks too.

    A customer can avail deductions of up to Rs.1.5 lakh on investing in a 5-year tax-saving FD scheme under Section 80C.

    19 January 2022

  • FD rates hiked by SBI

    The largest public lender in India, the State Bank of India (SBI) has hiked interest rates on Fixed Deposits (FD). The new FD rates will be effective from 15 January 2022 onwards. The interest rates will be applicable on deposits less than Rs.2 crore, having a tenure of less than two years.

    17 January 2022

  • FD rates revised by CitiBank

    CitiBank has become the latest bank in India to revise their FD rates for the year 2022. The new interest rates range between 1.85% and 3.50% for tenure ranging between 7 days and more than 1096 days for deposits up to Rs.2 crore.

    The rates are different depending on the amount deposited by you.

    For deposits ranging up to Rs.2 crore, the bank will charge an interest of 1.85% for tenure between 7 days and 14 days, and 1.90% for tenure between 15 days and 35 days. For tenure ranging between 36 days and 180 days, the bank will offer you interest rate of 2.55%. For tenure between 181 days and 270 days, the interest offered will be 2.60%, while an interest of 2.75% will be offered on deposits for tenure between 271 days and 540 days. You can earn an interest rate of 3.00% for tenure between 541 days and 731 days, while for tenure ranging between 732 days and 1096 days, you will be able to earn interest at the rate of 3.50%.

    17 January 2022

  • IDBI Bank puts revised interest rates for fixed deposits

    IDBI Bank has recently updated its interest rates for residential term deposits and NRO deposits of less than Rs.2 crore. The new rates have been put into effect from the 1st of January 2022.

    After the revision, the bank now offers interest rates ranging from 2.7% p.a. to 5.25% p.a. for the general public. For the senior citizens, the rates start at 3.20% p.a. and goes up to 5.75% p.a. the term for the deposits range from 7 days to 10 years.

    15 December 2021

  • YES Bank Revises FD rates

    YES Bank has revised its fixed deposit interest rates for deposit less than Rs.2 crore. The bank is offering rates of interest at 3.25% to 6.25% for general citizens and interest ranging between 3.75% and 7.00% for senior citizens. The lender also revised the rates for recurring deposits, for both general and NRE categories, and for normal NRE Deposits.

    06 January 2022

  • Kotak Mahindra revises FD rates

    Kotak Mahindra has become the latest bank after ICICI Bank and HDFC Bank to revise their fixed deposit rates. The bank will offer interest ranging between 2.50% and 5.30% p.a. for tenure ranging between 7 days and 10 years. Senior citizens will be able to enjoy an additional interest rate of 0.50% with rates ranging between 2.50% and 5.80%.

    05 January 2022

  • FD Interest rates revised by Bank of Baroda

    Bank of Baroda has revised the interest rates offered on term deposits. The new rates are applicable on domestic fixed deposits and NRO deposits of Rs.2 crore or more with effect from 1 January. In the last few days, other banks like HDFC Bank and ICICI Bank have also revised their fixed deposits rates.

    After the revision in the rates, domestic fixed deposits of Rs.2 crore or more will earn interest of 2.90% per annum (p.a.) on a tenure that ranges between 7 days and 90 days. A tenure between 91 days to less than a year will earn a rate of return of 3.50% p.a. while deposits opened for a year will earn 3.80% p.a. as interest. Any deposit opened with the bank for a period above 1 year and up to 10 years will earn a rate of return of 4% per annum.

    03 January 2022

  • ‘Green Fixed Deposit’ to support UN’s SDGs

    On 28 December 2021, IndusInd Bank announced that it will be launching ‘Green Fixed Deposit’ which will be used to finance firms and projects supporting the United Nation’s (UN) Sustainable Development Goals (SDG).

    The rate of interest for ‘Green Fixed Deposit’ will be the same as that of regular FD plans. However, the customers opting for ‘Green Fixed Deposit’ will get a ‘Green’ certificate and ‘Assurance’ certificate at year-end confirming the end-use of deposits.

    31 December 2021

  • YES Bank revises fixed deposit rates

    The fixed deposit rates have been revised by YES Bank for their fixed deposit products on their different term deposits. The changes in the rates came into effect from 14 December 2021 on fixed deposits from Rs. 2 crore to Rs.5 crore.

    The lender is now offering interest rate ranging between 3.25% and 5.50% on deposits from Rs.2 crore to Rs.5 crore with tenures ranging between 7 days and 5 Years and above.

    The bank will also offer interest on the deposits ranging between 3.25% and 5.75% for deposits made by senior citizens on amounts ranging between Rs.2 crore and Rs.5 crore with tenures ranging between 7 days and 5 years and above.

    YES Bank, however, decided to keep their interest rates for deposits less than Rs.2 crore unchanged. For bulk deposits below Rs.2 crore, the lender had revised rates for the same back on 3 November 2021 where they were offering interest rates ranging between 3.25% and 6.25% to an individual and interest between 3.75% and 7.00% to senior citizens on amount up to Rs.2 crore for tenure ranging between 7 days and 10 years.

    27 December 2021

  • Bandhan Bank revises FD interest rates for deposits above Rs.2 crore

    Effective 24 December 2021, Bandhan Bank has revised its interest rates on fixed deposits above Rs.2 crore. This is applicable for deposits that mature between 7 days to 10 years. The current interest rates range from 3.00% p.a. to 7.00% p.a. This interest rate is applicable for deposits that range from Rs.2 crore to Rs.100 crore and above which have a premature withdrawal option. For deposits of the same amounts and same tenures that do not have a premature withdrawal option, the interest rates range from 3.00% p.a. to 7.50% p.a.

    25 December 2021

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