Which Banks Offer the Best Fixed Deposit Interest Rate?

How many investment options do we have out there? It does not pertain to one, does it? You can invest in FDs, RDs, stocks, mutual funds, real estate, gold, and so much more. These options would keep expanding. But, even after decades and decades, do you know why FDs still stand at the place one when it comes to thinking about investments and savings? This is something we would have to know before we go further into the topic. A fixed deposit – is one investment that has gained the trust and is also known to be one with great risk-free and assured returns.

What Contributes to the Fixed Deposit’s Fame?

Well, you mostly heard a lot of people who invested in fixed deposits. A lot of people could also be your parents, your grandparents, friends, and so much more. How has an investment vehicle been such a go-to option for all of these years? Isn’t this a question you would want to ask every single time you hear about investments?

Your answer to that is right here!

A Fixed deposit is one such reliable investment tool only because of the following reasons:

  1. It is offered by only the most reliable sources (private banks, public banks, post offices, and registered and reputed non-financial banking companies).
  2. It assures returns (the interest rates on your principal amount are not subject to any kinds of market equities or funds to fluctuate, it will always remain the same).
  3. You could also get tax benefits from the scheme based on several factors.
  4. You can be invested in it for the long, mid, or the short term.
  5. You have a wide range of options to choose from (given all of the sources that offer this service).
  6. You can also get a loan against your FD (By using it as collateral).
  7. In some cases, you can also prematurely withdraw.
  8. There are options for FDs that you can never withdraw.
  9. You will find the options to nominate your account.
  10. There are options for auto-renewal and renewal of FD accounts.
  11. You can also avail of the FD account from banks where you already hold a savings or current account.

FD Benefits Explained With an Example

Let’s just assume Rohit invests in an Axis Bank FD. These are the particulars of his investment:

  • Tenure: 5 years.
  • Investment Sum: Rs. 2,00,000
  • Interest Rate Offered by the Bank: 6%

Now, you know everything about this investment, including the FD rate of interest Axis Bank.

Case 1: If Rohit wants to continue investing after a period of five years, he can renew his FD. This means he will be reinvested without any work having to be done.

Case 2: If Rohit is facing a cash crunch, he does not always have to break his FD halfway – he can get up to 90% of his FD’s value as a loan. Here is FD will be the collateral, but he can still get it giving him more time and also saving his benefits.

Case 3: If Rohit surpasses his emergency fund and definitely has to cash his FD, he can do that with a premature withdrawal too. All he would face is a 0.5% or 1% penalty charge and no more.

Case 4: If Rohit completes the whole tenure of his investments, he will be getting higher returns. Want to know how much? Here is the answer to it. His investment is Rs. 2,00,000, and after a period of five years, his total sum would be – Rs. 2,83,803. This means he has made a profit of Rs. 83,803 (his money has worked for him instead of him working for the money).

What are the Best FD Interest Rates Offered in the Market of 2022?

Well, your answer to this can be split into three parts.

1) FD Rates from Banks

2) FD Rates from NBFCs

3) FD Rates from Post Offices

Top Bank FD Rates of 2022

  • State Bank of India FD – 2.90% – 6.50%
  • Punjab and Sind Bank FD – 3.00% – 5.75%
  • Bank of India FD – 2.85% – 5.20%
  • IDFC Bank FD – 2.50% – 6.25%
  • HDFC Bank FD – 2.50% – 5.60%
  • IDBI Bank FD – 2.70% – 5.60%
  • Punjab National Bank FD – 3.00% – 5.25%
  • Axis Bank FD – 2.50% – 5.75%
  • Canara Bank FD – 2.90% – 5.75%

Top NBFCs FD Interest Rates

  • Hawkins Cookers Ltd – 8%
  • Shriram City Finance – 7.78%
  • Muthoot Finance – 7.25%
  • Bajaj Finserv – 7.05%
  • HDFC Housing Finance – 6.95%
  • KTDFC Ltd – 6.25%
  • Sundaram Finance – 6.30%

Post Office FD Interest Rates

  • Post Office FD Interest Rate – 5.50% – 6.70%

Now, do not come to conclusions after you look at these numbers – these numbers will align only when you put them together with the tenures.

Let’s just say Hawkins Cookers Ltd offers you an interest rate of 8%, but that interest rate would not be the same if you invest for less than three years (the rates would drop). So, the time specifics are not mentioned in this article, but you can always find them in each portal. You have a path to kick start your FD hunt. These are the right kind of headers that you need to start looking into.

Few Things to Make Sure Before your Investment

There are a couple of things that you might not want to miss out on when you invest in an FD – these are quite important, so make sure you remember them for the long run (especially to keep out of financial trouble):

1) Make sure you do not need this money for a specific period of time, or you would be losing a lot of money on the interest and a little by paying the penalty for early withdrawal.

2) Know what you are in for; make sure you use an online FD calculator to know how much returns you would be making and how much will go out as taxes during your withdrawal. By this, you can make informed decisions and also decide on how much you want to invest.


Here – you have a heads up on everything about ab FD, and all you would have to do is get started with the right kind of FD for yourself. All the best on your new FD investment!