Home » How to find the best fixed deposit (FD) interest rate?

How to find the best fixed deposit (FD) interest rate?

by Sneha Shukla

A Fixed Deposit (FD), as one of the oldest and the safest investment vehicles offers decent financial growth over a fixed tenure. Banks and NBFCs provide a range of fixed deposit accounts with flexible terms and interest rates that you can choose per your financial requirements.

However, before investing in a fixed deposit account, you need to research and find out the best interest rates on fixed deposits to maximise your profits. Let’s know more about fixed deposit accounts and the interest rates offered.

What is a fixed deposit account?

A fixed deposit is a conventional bank account in which you deposit a lump sum amount for a fixed tenure, and the bank promises you a prespecified interest rate. Once the tenure ends, you can withdraw your funds and accrued interest or invest them for further terms.

Since the amount is locked in for specified tenure, these accounts are also known as term deposit accounts. The deposits are risk-free since your investment is not dependent on market performance. The fixed deposit interest rates offered to you at the beginning of the investment remain the same through the tenure.

How to find the best fixed deposit interest rates?

To find the best-fixed deposit interest rates, you must research various banks rather than the FD. Several NBFCs offer decent FD interest rates with attractive features and benefits along with banks. Here are the ways to find the best-fixed deposit interest rates in India in 2022.


  • Outline your financial goals
    Once you have outlined your financial goals, you can figure out how much interest rate you need to fulfil your financial goals. You can then research online to find the best FD interest rates that suit your requirements.


  • Research thoroughly
    Banks and NBFCs offer a variety of fixed deposit accounts with flexible tenures and interest rates. You must choose the best FD interest rates and accounts that offer flexibility to access funds during emergencies. Several financial web aggregators provide details and insight on various term deposit accounts. Alternatively, you can visit a financial advisor or a bank in person to find the best FD interest rates.

    IDFC FIRST Bank is among the banks offering the highest FD interest rates in India, with rates starting at 6.5% per annum. Moreover, you can enjoy monthly and quarterly interest payouts on your funds. You can withdraw funds prematurely without penalty if you are a senior citizen.

    The bank offers flexible tenures, including short-term deposits of 7 to 180 days to meet your short-term goals.


  • Check account flexibility
    You must also consider account flexibility to access your funds whenever necessary. Most FDs lock your funds for the specified tenure, and if you withdraw funds prematurely or partially, the bank charge a penalty.

    However, several banks and NBFCs offer flexible FD accounts that allow premature and partial withdrawals so that you don’t have to worry about emergencies.


  • Verify the interest rates
    Interest rates offered by banks may vary depending on the tenure and amount. A longer term and higher deposit may give you a better interest rate. Moreover, a financial institution may advertise the highest FD interest rate they are offering to attract your attention, but when you dive into the details, you don’t find them suitable.

    Hence, you should consider all the details and information of the fixed deposit you are planning to invest in.

Fixed deposit accounts are the safest investment option where you get guaranteed returns irrespective of market performance. However, you need to find a suitable fixed deposit account to maximise your profits and easy access to funds. Online research can help you find a fixed deposit with the highest interest rates, thus ensuring maximum returns.

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