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 May 2022.
Updated on - 23 May 2022
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a) |
|---|---|---|
| State Bank of India FD | 2.90% to 5.50% | 3.40% to 6.30% |
| HDFC Bank FD | 2.50% to 5.60% | 3.00% to 6.35% |
| IDBI Bank FD | 2.70% to 5.60% | 3.20% to 6.35% |
| Punjab National Bank FD | 3.00% to 5.25% | 3.50% to 5.75% |
| Canara Bank FD | 2.90% to 5.75% | 2.90% to 6.25% |
| Axis Bank FD | 2.50% to 5.75% | 2.50% to 6.50% |
| Bank of Baroda FD | 2.80% to 5.35% | 3.30% to 6.35% |
| IDFC Bank FD | 2.50% to 6.25% | 3.00% to 6.75% |
| Bank of India FD | 2.85% to 5.20% | 3.35% to 5.95% |
| Punjab and Sind Bank FD | 3.00% to 5.40% | 3.50% to 5.90% |
Best FD Rates in India among Top 10 Banks
- IDFC Bank offers the highest FD interest rate of 6.25% 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 6.75%.
- The second highest interest rate is 5.75% p.a. which is offered by Axis Bank for a tenure of 5 years and above.
- The third highest interest rate being offered is 5.60% p.a. which is offered by HDFC 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 May 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 7.00% |
| IndusInd Bank FD | 2.75% to 6.50% | 3.25% to 7.00% |
| UCO Bank FD | 2.55% to 6.02% | 2.80% to 6.67% |
| United Bank of India FD (now Punjab National Bank) | 3.00% to 5.25% | 3.50% to 5.75% |
| Allahabad Bank FD (now Indian Bank) | 2.80% to 5.25% | 3.05% to 5.50% |
| Central Bank of India FD | 2.75% to 5.50% | 2.90% to 3.55% |
| Indian Bank FD | 2.80% to 5.25% | 3.05% to 5.50% |
| Indian Overseas Bank FD | 3.40% to 5.45% | 4.15% to 6.20% |
| Bandhan Bank FD | 3.00% to 6.25% | 3.75% to 7.00% |
| DBS Bank FD | 2.50% to 5.75% | Contact the bank for details |
| Andhra Bank FD (now Union Bank) | 3.00% to 5.50% | Contact the bank for details |
| HSBC Bank FD | 2.25% to 4.00% | 2.75% to 4.50% |
| Syndicate Bank FD (now Canara Bank) | 2.90% to 5.75% | 2.90% to 6.25% |
| Duetsche Bank FD | 2.30% to 7.00% | 2.30% to 7.00% |
| 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 7.00% p.a. which is given by Deutsche Bank for tenures ranging from 3 years to 7 years for the general public.
- For senior citizens, the highest FD rate among popular banks in India is 7.00% given by Deutsche Bank for tenure ranging from 3 years and 7 years.
Fixed Deposit During Coronavirus/Covid-19
The Reserve Bank of India has announced repo rate cuts which may induce banks to reduce the interest rates on fixed deposits in the future.
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 May 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 | 6.50% | 7.00% |
| HDFC Bank Tax Saving FD | 5.45% | 5.95% |
| Canara Bank Tax Saving FD | 5.75% | 6.25% |
| Axis Bank Tax Saving FD | 5.75% | 6.50% |
| Bank of Baroda Tax Saving FD | 5.35% | 6.00% |
| IDFC Bank Tax Saving FD | 6.25% | 6.75% |
| Union Bank of India Tax Saving FD | 5.40% | 5.90% |
| PNB Tax Saving FD | 5.25% | 5.75% |
| Punjab and Sind Bank Tax Saving FD | 5.40% | 6.40% |
| IDBI Bank Tax Saving FD | 5.60% | 6.35% |
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 6.50% p.a.
- Axis Bank and Canara Bank offer the second-highest interest rates for the general public at 5.75% p.a.
- For senior citizens, the highest interest rate is 7.00% p.a. offered by IndusInd Bank and 6.50% 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 May 2022.
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| Jana Small Finance Bank FD | 2.50% to 7.00% | 3.30% to 7.80% |
| Utkarsh Small Finance Bank FD | 3.00% to 7.25% | 3.50% to 7.75% |
| Equitas Small Finance Bank FD | 3.50% to 6.75% | 4.00% to 7.25% |
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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 May 2022.
| Name of Bank | Tenure | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|---|
| LIC Housing Finance FD | 12 months to 60 months | 5.15% to 6.00% | 5.40% to 6.25% |
| PNB Housing Finance FD | 12 months to 120 months | 5.75% to 6.85% | 6.00% to 7.10% |
| 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 May 2022:
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| IDFC First Bank | 5.75% | 6.25% |
| Bank of India | 5.00% | 5.25% |
| IDBI Bank | 5.15% | 5.65% |
| Punjab National Bank | 5.10% | 5.60% |
| Canara Bank | 5.30% | 5.80% |
| State Bank of India | 5.10% | 5.60% |
| Punjab and Sind Bank | 5.15% | 5.65% |
Highest 2 Year FD Interest Rates
These are the highest 2-year FD rates offered by banks effective from May 2022:
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| IDFC First Bank | 5.75% | 6.25% |
| IDBI Bank | 5.25% | 6.00% |
| Union Bank of India | 5.10% | 5.60% |
| Canara Bank | 5.45% | 5.95% |
Highest 3 Year FD Interest Rates
These are the highest 3-year FD rates offered by banks effective from May 2022:
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| IDFC First Bank | 6.00% | 6.50% |
| Axis Bank | 5.40% | 5.90% |
| IDBI Bank | 5.50% | 6.25% |
| State Bank of India | 5.45% | 5.95% |
| Punjab and Sind Bank | 5.40% | 5.90% |
Best 5 Year FD Interest Rates
These are the highest 5-year FD rates offered by banks effective from May 2022:
| Name of Bank | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| IDFC First Bank | 6.25% | 6.75% |
| Union Bank of India | 5.40% | 5.90% |
| IDBI Bank | 5.60% | 5.35% |
| Canara Bank | 5.75% | 6.25% |
| Axis Bank | 5.75% | 6.50% |
| State Bank of India | 5.50% | 6.30% |
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 May 2022:
| Name of Bank | Tenure | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|---|
| State Bank of India | 5 years to 7 years | 5.50% | 6.30% |
| Axis Bank | 6 months to 5 years | 4.40% to 5.40% | 4.60% to 6.50% |
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
IDBI Bank launches Naman Senior Citizen Deposit
IDBI Bank, a private sector lender, launched a special fixed deposit scheme called "IDBI Naman Senior Citizen Deposit" on Wednesday to compete with special fixed deposit schemes offered by leading banks such as State Bank of India (SBI), HDFC Bank, and ICICI Bank, as well as to provide senior citizens with massive interest rate benefits. This scheme went into effect on 20 April 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
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What is the minimum period for a fixed deposit?
A fixed deposit account can be opened for a minimum period of 7 days.
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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.
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Can I get monthly interest on a fixed deposit?
Yes, you can get a monthly interest payout on your fixed deposit.
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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.
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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.
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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.
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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.
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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.
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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.
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Do banks charge a penalty for premature withdrawal of FD?
Yes, banks charge a penalty for premature withdrawal of a FD.
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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.
