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Fixed Deposit Interest Rates 2022

If you have been looking for a safe investment option with no market-risk, consistent returns, various interest payment options, and income tax deductions, fixed deposits (FDs) are the ideal choice for you.

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What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a low-risk investment instrument which allows an investor to deposit a lump sum amount of their choice for a fixed period of time and enjoy consistent returns. Offered by banks and NBFCs, fixed deposits offer a rate of interest that is generally higher than the rate of interest earned through a savings account. Fixed deposits are one of the best investment options for people looking for assured returns.

How Does a Fixed Deposit (FD) Work?

A fixed deposit locks a specific sum deposited by the investor for a fixed period of time in a bank. In general, banks give permission to the depositors to practice flexibility of investing their funds for a period as low as 7 days to as high as 10 years. The choice of tenure depends on the investor who can open the FD account for as long as they have idle funds. The interest rate on the deposit depends on the period for which the lump sum is placed with the bank.

Usually banks do not permit the depositors to withdraw money before the due date. One must note that some banks provide the facility of premature withdrawal, however it comes with a lower interest rate.

Once the fixed deposit gets matured, the bank credits the principal and interest to the bank account of the depositor. Since interest rate and deposit period are fixed, banks refer to deposit type as fixed deposit.

Best Fixed Deposit Interest Rates for 2022

Below mentioned is the list of the best FD interest rates for 2022 offered by the top 10 banks in the country -

Bank

General Citizens

Senior Citizens

State Bank of India FD

2.90% to 5.40%

3.40% to 6.20%

ICICI Bank FD

2.50% to 5.50%

3.00% to 6.00%

HDFC Bank FD

2.50% to 5.50%

3.00% to 6.25%

Punjab National Bank FD

2.90% to 5.25%

3.50% to 5.75%

Canara Bank FD

2.90% to 5.25%

2.90% to 5.75%

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 5.75%

IDFC Bank FD

2.75% to 5.75%

3.25% to 6.25%

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 5.60%

(*The above-mentioned FD rates are applicable on a per annum basis and are as of 18th October, 2021 for tenures ranging 7 days to 10 years.)

Top Fixed Deposit Interest Rates by Commercial Banks

The latest FD interest rates for commercial banks for term deposit below Rs. 2 Crore for general citizens are as follows:

Bank/Tenure

7 -29 days

61 days < 3 months

3 months < 6 months

6 months < 1 year

1 year < 1 year 5 days

3 years < 5 years

5-10 years

SBI

2.90%

3.90%

4.40%

4.40%

5%

5.30%

5.40%

HDFC Bank

2.50%

3%

3.50%

4.40% to 4.90%

4.90%

5.30%

5.50%

ICICI Bank

2.50%

3%

3.50%

4.40%

4.90%

5.35%

5.50%

Axis Bank

2.50%

3%

3.50%

4.40%

5.10%

5.40%

5.75%

Kotak Bank

2.50%

2.75%

2.75% to 4.20%

4.20% to 4.40%

4.50%

5.20%

5.25%

Punjab National Bank

2.90%

3.25%

3.80%

4.40% to 5%

5%

5.25%

5.25%

Canara Bank

2.90%

2.90% to 3.90%

3.95%

4.40% to 5.10%

5.10%

5.25%

5.25%

IndusInd Bank

2.50% to 2.75%

3.40%

3.75% to 4.25%

4.60% to 5.50%

6%

6%

5.50%

Bank of Baroda

2.80%

3.70%

3.70%

4.30% to 4.90%

5%

5.25%

5.25%

(*The above-mentioned FD rates are applicable on a per annum basis and are as of 26th October, 2021.)

The latest FD interest rates for commercial banks for term deposit below Rs. 2 Crore for senior citizens are as follows:

Bank/Tenure

7 -29 days

61 days < 3 months

3 months < 6 months

6 months < 1 year

1 year < 1 year 5 days

3 years < 5 years

5-10 years

SBI

3.40%

4.40%

4.40%

4.40%

5%

5.30%

5.40%

HDFC Bank

3%

3.50%

4%

4.90% to 5.40%

5.40%

5.80%

6.25%

ICICI Bank

3%

3.50%

4%

4.90%

5.40%

5.85%

6.30%

Axis Bank

2.50%

3%

3.50%

4.65%

5.75%

6.05%

6.50%

Kotak Bank

3%

3.25%

3.25% to 4.70%

4.70% to 4.90%

5%

5.70%

5.75%

Punjab National Bank

3.40%

3.75%

4.30%

4.90% to 5.50%

5.50%

5.75%

5.75%

Canara Bank

2.90%

2.90% to 3.90%

3.95%

4.90% to 5.60%

5.60%

5.75%

5.75%

IndusInd Bank

3% to 3.25%

3.90%

4.25% to 4.75%

4.10% to 6%

6.50%

6.50%

6%

Bank of Baroda

3.30%

4.20%

4.20%

4.80% to 5.40%

5.50%

5.75%

5.75%

(*The above-mentioned FD rates are applicable on a per annum basis and are as of 26th October, 2021.)

Best FD Rates by Small Finance Banks

The latest FD rates for small finance banks for general citizens for deposits under Rs. 2 Crore are:

Bank/Tenure

7 -29 days

61 days < 3 months

3 months < 6 months

6 months < 1 year

1 year < 1 year 5 days

3 years < 5 years

5-10 years

Ujjivan Small Finance Bank

2.90%

3.50%

4.25%

4.75%

6%

6.25%

6%

Jana Small Finance Bank

2.50% to 3%

3.75%

4.50%

5.50%

6.25% to 6.50%

6.50% to 6.75%

6%

Equitas Small Finance Bank

3.50%

4%

4.35%

4.85%

5.85%

5.75%

6%

AU Small Finance Bank

3.50%

4%

4.35%

4.85%

5.85%

5.75%

6%

Fincare Small Finance Bank

3%

3.25%

3.50%

5%

5.60%

6.25% to 6.50%

5.50% to 6.75%

ESAF Small Finance Bank

4% to 4.50%

5.25%

5.50%

5% to 5.25%

6% to 6.25%

5.25% to 5.75%

5.25%

Suryoday Small Finance Bank

3.25%

4.25%

4.75%

5.25%, 5.75%

6.50%

6.50%

6%

Utkarsh Small Finance Bank

3%

3.25%

4%

5.75%

6.25%

6%

6%

(*The above-mentioned FD rates are applicable on a per annum basis and are as of 26th October, 2021.)

The latest FD rates for small finance banks for senior citizens for deposits under Rs. 2 Crore are:

Bank/Tenure

7 -29 days

61 days < 3 months

3 months < 6 months

6 months < 1 year

1 year < 1 year 5 days

3 years < 5 years

5-10 years

Ujjivan Small Finance Bank

3.40%

4%

4.75%

5.25%

6.25%

6.75%

6.50%

Jana Small Finance Bank

3% to 3.50%

4.25%

5%

6%

6.75% to 7%

7% to 7.25%

6.50%

Equitas Small Finance Bank

4%

4.50%

4.85%

5.35%

6.35%

6.25%

6.50%

AU Small Finance Bank

4%

4.50%

4.85%

5.35%

6.35%

6.25%

6.75%

Fincare Small Finance Bank

3.50%

3.75%

4%

5.50%

6.10%

6.75% to 7%

6% to 7.25%

ESAF Small Finance Bank

4.50%

5.75%

6%

5.75% to 6%

6.50% to 6.75%

5.75% to 6.25%

5.75%

Suryoday Small Finance Bank

3.25%

4.25%

4.75%

5.25%, 5.75%

6.75%

6.50%

6%

Utkarsh Small Finance Bank

3.50%

3.75%

4.50%

6.25%

6.75%

6.50%

6.50%

(*The above-mentioned FD rates are applicable on a per annum basis and are as of 26th October, 2021.)

Different Types of Fixed Deposits Investment

The different types of Fixed Deposits are:

  • Normal Fixed Deposits: This FD type deposits money for a specific, fixed tenure ranging between 7 days to 10 years. The interest rate for this FD type is higher than a normal savings account.
  • Tax-Saving Fixed Deposits: This FD type allows only a one-time lump sum deposit and gives tax exemption on the principal deposit amount of up to Rs. 1.5 Lakh in a calendar year. It features a 5-year lock-in period.
  • Senior Citizen Fixed Deposits: This FD type is applicable for people older than 60 years of age that enjoy special rates and flexible tenures.
  • Cumulative Fixed Deposits: This FD type compounds interest at every quarter or year and pays at the time of maturity.
  • Non-Cumulative Fixed Deposits: Under this FD type, interest is paid out monthly, quarterly, half-yearly, or annually, as per the depositor’s choice.
  • Flexi Fixed Deposits: In this FD type, the fixed deposit is linked to an investor’s bank account. What’s more is that the money switches between FD and savings account.
  • NRI Fixed Deposits: In this FD type, Indians living abroad can invest in fixed deposits. The investment can be made in Indian currency through the Non-resident Ordinary (NRO) accounts.

Key Features of Fixed Deposits (FDs)

Some of the key features of an FD are:

  • Enhanced safety in comparison to different other financial instruments.
  • Gives interest over a fixed time period.
  • No limit on maximum deposit.
  • Flexible tenure of up to 10 years.
  • Special interest rate for senior citizens.

Who Can Invest in Fixed Deposits (FDs)?

For Fixed Deposits, the entities allowed include Indian residents, NRIs, senior citizens, minors, companies, partnership firms, individuals or joint investors, sole proprietorship and societies or clubs.

How to Choose the Right Fixed Deposit (FD) For You?

In order to choose the right FD, one must follow the below mentioned steps that include:

  • Comparison of FD interest rates of different banks.
  • Reviewing the lender’s credibility by checking ICRA or CRISIL safety ratings.
  • Making a choice between a cumulative or non-cumulative fixed deposit.
  • Choosing a bank with good customer service and a hassle-free process for opening an FD.

How to Open a Fixed Deposit (FD) Account?

If you want to open an FD today, follow the approaches mentioned below:

  • Online Mode: Use the net banking facility at an account that you already have with a bank, fill up the FD opening form, and submit it. No KYC will be needed due to the bank possessing your details beforehand.
  • Offline Mode: Visit the nearest branch of your bank. Submit the application form to open an FD account along with the required documents. Deposit the required amount and get the FD receipt.

Why Should You Choose Life Insurance Over Fixed Deposits?

Fixed deposits are an excellent choice in terms of investment. If you wish to invest in a fixed deposit, you must do so by all means. However, before you go ahead with a fixed deposit of your choice, it is advised to consider life insurance.

Life insurance is a contract between an insurance company and the policyholder under which the insurer promises to pay a sum of money in exchange of premium in the event of the death of the life assured or on plan maturity.

Below mentioned are a few key points that shed light on reasons that make life insurance a better choice than fixed deposits:

  • Life insurance offers a combination of insurance as well as investment.
  • Life insurance covers you starting from a few years up to the lifetime.
  • Life insurance provides protection against various risks and financially strengthens the life assured’s family in the case of an unfortunate event.
  • Life insurance coverage stretches far beyond the period for which the premium is paid.
  • Life insurance can be availed in a varied range of options such as whole life plan, retirement plan, and more.
  • Life insurance comes with tax benefits under Section 80C & Section 80D of the Income Tax Act, 1961.

Disclaimer: The above information in relation to Fixed Deposits is for education purpose only and not to be construed as investment advice. Consultation with an investment advisor prior to any investment decision is highly recommended.

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FAQ About Fixed Deposit Interest Rates 2022

  • Can I open an FD account online?

    Yes! You can open your FD account online as well as offline according to your needs. 

  • Is FD free from risks of any kind?

    Yes! FD or fixed deposit is a risk-free financial instrument. 

  • What is the minimum period for an FD?

    The minimum period for fixed deposits in India is 7 days. 

  • What is the maximum period for an FD?

    In India, the maximum period for an FD is 10 years in most cases, however, some banks can offer higher duration in India. 

  • Can I double my FD investment money in 5 years?

    It depends on the rate of interest that you will be offered and whether or not it remains consistent throughout the 5 years.

  • What is the right time to buy life insurance?

    The right time to buy life insurance is NOW! Experts suggest buying life insurance as early as possible in life to enjoy low premium rates. You can buy life insurance any time you feel the need for financial support to take care of your family and dependents even if you are there or not to provide.

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