Interest Rate on FD for 1 Year 2022

The highest interest rate is offered by ESAF Small Finance Bank (for 1 year) at 8.75% and Equitas Small Finance Bank (for 1 year) at 8.50% followed by North East Small Finance Bank (for 1 year) at 8.50%.

BankMaturity Period Interest Rate (p.a.)Calculate
Abu Dhabi Commercial Bank12 Months7.30%
Yes Bank12 Months6.00%
Indusind Bank12 Months6.00%
A B Bank Limited12 Months5.75%
Dcb Bank Limited12 Months5.55%
Tamilnad Mercantile Bank Limited12 Months5.50%
Bandhan Bank Limited12 Months5.50%
Standard Chartered Bank12 Months5.30%
South Indian Bank12 Months5.20%
Indian Overseas Bank12 Months5.15%
Dhanalakshmi Bank12 Months5.15%
Karur Vysya Bank12 Months5.15%
Axis Bank12 Months5.10%
Jammu And Kashmir Bank Limited12 Months5.10%
Federal Bank12 Months5.10%
The Nainital Bank Limited12 Months5.10%
Syndicate Bank12 Months5.10%
Karnataka Bank Limited12 Months5.10%
Canara Bank12 Months5.10%
Idbi Bank12 Months5.05%
Punjab And Sind Bank12 Months5.05%
Bank Of India12 Months5.00%
Union Bank Of India12 Months5.00%
Corporation Bank12 Months5.00%
State Bank Of Patiala12 Months5.00%
Oriental Bank Of Commerce12 Months5.00%
United Bank Of India12 Months5.00%
Laxmi Vilas Bank12 Months5.00%
State Bank Of Travancore12 Months5.00%
Punjab National Bank12 Months5.00%
Bharatiya Mahila Bank Limited12 Months5.00%
Catholic Syrian Bank Limited12 Months5.00%
Andhra Bank12 Months5.00%
State Bank Of Bikaner And Jaipur12 Months5.00%
City Union Bank Limited12 Months5.00%
State Bank Of India12 Months5.00%
Central Bank Of India12 Months5.00%
State Bank Of Mysore12 Months5.00%
Allahabad Bank12 Months4.95%
Indian Bank12 Months4.95%
Bank Of Maharashtra12 Months4.90%
Dena Bank12 Months4.90%
Vijaya Bank12 Months4.90%
Hdfc Bank12 Months4.90%
Icici Bank Limited12 Months4.90%
Bank Of Baroda12 Months4.90%
Uco Bank12 Months4.90%
Idfc Bank Limited12 Months4.75%
Kotak Mahindra Bank Limited12 Months4.75%
Dbs Bank Ltd12 Months4.25%
Deustche Bank12 Months3.85%
Chinatrust Commercial Bank Limited12 Months3.55%
Hsbc Bank12 Months3.10%
Citi Bank12 Months2.75%
B N P Paribas12 Months2.30%
Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD. Source: Bank Websites

What is a Fixed Deposit?

Fixed deposits is one of the most popular investment options in India. FD offers higher interest rate for flexible tenures ranging from 7 days to 10 years. FD can be opened to achieve your financial goals. It is considered good for short term as well as for long term investors. It is very popular product offered by all the banks in India. There are many private non-banking financial companies (NBFCs) which offer fixed deposit schemes to the customers at slightly higher interest rate as compared to banks.

Fixed Deposit Highlights

  • Maximum Investment Amount: No such limit
  • Interest Rates Variable: From 7 to 9% based on term
  • Interest earned is taxable: Yes
  • Lock in Period: No
  • Tenure: 1 Year
  • Maturity Value: Taxable
  • Premature Withdrawals: Entire amount, anytime but after charging a certain penalty
  • Risk: Risky as compared to PPF

Benefits of Fixed Deposit

Guaranteed Returns

Whenever you open an FD account, it is booked at prevailing interest rate. This interest is a guaranteed interest given by the bank till the maturity of the FD

Monthly Income

The interest earned can be taken on a monthly or quarterly basis as per the need of the investor. It is a secondary monthly income for the investors.

Reinvestment of Interest

Apart from monthly payout facility of FD, the interest can also be reinvested, if the investor does not require any payout of interest portion. It can be accumulated and can be received along with maturity proceeds of the FD.

More Returns to Senior Citizens

Higher interest rate is offered on FD for senior citizen investors. They get around 0.50% higher interest on FDs than the normal investors.

No TDS upto Rs 10,000 per financial year

There is no deduction of TDS for interest amount of upto Rs 10,000 per financial year. If the interest amount exceeds Rs 10,000 in a financial year then only a TDS will be made by the banks. Persons who are not tax liable, can avoid TDS by submitting Form 15G/ 15H. TDS certificate is issued by the banks at the end of the financial year.

Availability of Loan against FD

One can take loan against FD at lower interest rate, in case of urgent need of money. Remember, this type of loan does not affect the credit score at all as it is given against security of FD. One can take a loan against FD upto 90% of FD value.

Auto Renewal Facility

Returns can be increased through Auto Renewal facility. There is no need to keep track of maturity date, it will be renewed automatically by the bank.

Premature Closure

Premature Closure of an FD is also allowed. At times, you can have an emergency and you need money urgently say for medical treatment, etc. On such occasions, you can get your FD closed before its maturity date after paying a nominal penalty.

Better Returns

FDs generates higher returns than some of the investment avenues. It is considered safe and convenient instrument of investment.

Online Investment

Majority of banks provide online facility on their portals for opening an FD. There are very minimal documentation requirement and the investment can be made by following very easy steps.