Getting the highest FD rates in India: 2022 Guide

There is no one-size-fits-all approach to saving money for everyone. Savings instruments may differ based on a person’s ability to save, time horizon, savings goal, and other factors.

As a result, fixed deposit accounts have become a popular option for storing money since they are not affected by market fluctuations and provide the highest FD rates in India at the time of maturity.

Unclaimed, matured FD accounts will now be subject to a new regulation imposed by the RBI. Thus, money in an unclaimed, matured FD account earns interest at the savings account’s rate or the matured FD’s contractual rate, depending on the lowest of the two.

What is Fixed Deposit Account?

Banks provide fixed deposit accounts as a kind of investment. Over time, investors would make regular deposits into this account. They would get a set interest rate for the duration of the investment.

If you’re looking for a better rate of return, you might consider a fixed deposit (FD). Investors may withdraw their money after the deposit’s term. Then again, individuals might choose to keep their money invested for a new period.

An FD returns calculator is an easy-to-use and practical financial instrument found on the internet to calculate FD rates in India. Calculating fixed deposit rates is a matter of seconds using an FD return calculator. A Google search for an FD interest rate calculator will bring up various options for a person to choose from. However, one may also find out by using the following formula:

A = P * (1+r/n) ^ n * t

Interest Rates on Fixed Deposits in India: Essential Terms:

Timely Closure

At the moment of maturity, it refers to the closing of your FD account. Fixed deposit accounts have a maturity date when the bank returns the principal and any accrued interest to the account holder.

Partial Withdrawal

This word refers to the ability to take a portion of your fixed deposit principal as a lump sum. Taking a portion of your savings out early might be due to a financial emergency or taking advantage of another financial institution’s best-fixed deposit rates.

Breaking the FD account

The opposite of closing your FD account is breaking an FD account. Premature withdrawal, often known as “breaking the FD,” occurs when you take your full fixed deposit money out before the maturity term has ended. Early withdrawals from fixed deposit accounts are generally not permitted by banks. However, this varies by bank policy. Almost all banks charge a penalty if you break an FD before its maturity and pay back the principal and interest at the lowest interest rate.

Fixed Deposit Interest Rates at the Top Banks

Investments in fixed deposits are among the safest alternatives in the market, with guaranteed best-fixed deposit rates and additional perks for older people. FDs are the most common type of investment among the general public because they lack market risk.

Fixed deposit interest rates of less than two crore rupees are available from several of India’s best-known banks, given below:

Citibank

For Regular Customers (% p.a.) -1.85% – 3.50%

For Senior Citizens (% p.a.)- 2.35% – 4.00%

HDFC Bank

For Regular Customers (% p.a.) -2.50% – 5.50%

For Senior Citizens (% p.a.)- 3.00% – 6.25%

ICICI Bank

For Regular Customers (% p.a.) 2.50% – 5.35%

For Senior Citizens (% p.a.)- 3.00% – 5.85%

State Bank of India

For Regular Customers (% p.a.) 2.90% – 5.40%

For Senior Citizens (% p.a.)- 3.40% – 6.20%

Axis Bank

For Regular Customers (% p.a.) 2.50% – 5.75%

For Senior Citizens (% p.a.)- 2.50% – 6.50%

Punjab National Bank

For Regular Customers (% p.a.) 3.00% – 5.30%

For Senior Citizens (% p.a.)- 3.50% – 5.80%

Bank of Baroda

For Regular Customers (% p.a.) 2.80% – 5.25%

For Senior Citizens (% p.a.)- 3.30% – 6.25%

Indian Bank

For Regular Customers (% p.a.) 2.90% – 5.25%

For Senior Citizens (% p.a.)- 2.40% – 5.75%

IDFC First Bank

For Regular Customers (% p.a.) 2.75% – 5.75%

For Senior Citizens (% p.a.)- 3.25% – 6.25%

Indian Overseas Bank

For Regular Customers (% p.a.) 3.40% – 5.20%

For Senior Citizens (% p.a.)- 3.90% – 5.70%

Conclusion

If you don’t want to risk, fixed deposit accounts are an excellent option. If you want to keep your money for a long time but don’t want it to increase in value, FD accounts are a good option.

Pensioners who get a large quantity of money after retirement often put it in FD accounts so that the interest they receive each month may be used to fund their lifestyle. It is best to invest in FD as we get the highest FD rates in India at maturity.

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