FD Interest Rates Comparison of Top Banks in India

FD Interest Rates

While investments are necessary for financial growth, preparation is even more critical. The appropriate investment can help you build wealth while also providing additional benefits. With various investment options available, you must choose one that best corresponds with your financial goals.

Investing online in a fixed deposit, a trusted instrument for the Indian investor is one sensible option that delivers stable returns.

A fixed deposit is a safe investment choice that allows you to increase your money without risk. The available FD interest rates determine an FD’s returns, and once booked, the rate remains fixed throughout the tenor.

The tenor is another factor that influences India’s foreign exchange rates. Issuers often provide tenors ranging from a few months to five years, with interest rates varying depending on time.

If you choose a longer tenor on an FD, you will typically get the best rates, and there are benefits to doing so. Interest compounding improves your savings account, increasing your returns dramatically. You’ll also get the best interest rate available, which can act as an inflation hedge for the duration of the window. Read on to get a sense of significant issuers’ five-year FD interest rates.

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

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

Name of BankFor General Citizens (p.a.)For Senior Citizens (p.a)
State Bank of India FD2.90% to 5.50%3.40% to 6.30%
HDFC Bank FD2.50% to 5.60%3.00% to 6.35%
IDBI Bank FD2.70% to 5.60%3.20% to 6.35%
Punjab National Bank FD3.00% to 5.25%3.50% to 5.75%
Canara Bank FD2.90% to 5.75%2.90% to 6.25%
Axis Bank FD2.50% to 5.75%2.50% to 6.50%
Bank of Baroda FD2.80% to 5.35%3.30% to 6.35%

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 BankTenorFor General Citizens (p.a.)For Senior Citizens (p.a.)
Bajaj Finance FD12 months to 60 months5.60% to 7.20%5.84% to 7.45% 
LIC Housing Finance FD12 months to 60 months5.15% to 6.00%5.40% to 6.25%
PNB Housing Finance FD12 months to 120 months5.75% to 6.85%6.00% to 7.10%
Shriram City Union Finance FD12 months to 60 monthsUp to 7.75%Up to 8.05%

Factors that Influence the Interest Rates on FDs

A variety of things influence FD interest rates. The tenor for investment is one of them. As previously stated, issuers are more likely to give greater interest rates for a longer tenor than for a short one. Aside from that, the following factors impact FD rate changes in India.

The Economic Environment of the Country

India’s FD rates are influenced by various factors that affect the country’s economic situation. The GDP of a government indicates its financial status, and a larger GDP frequently means higher interest rates. In addition, inflation and recession have an impact on FD interest rates. When inflation is, FD rates tend to rise, encouraging people to save rather than spend. Interest rates decrease as inflation falls.

The RBI’s repo rate, set and charged, is also a factor in establishing FD rates in India. It is the rate at which the RBI lends money to banks. A rise in the repo rate will lead to an increase in the FD interest rate.

The Investor’s Age

The interest rates on FDs vary depending on your age. Senior adults have a higher interest rate than those under 60. FDs are frequently used as a stable source of income, allowing them to access funds for day-to-day expenses. The investor’s age