Are you looking for the highest interest rates on an FD? Well, you can look at this piece to know that. But, before you know about that, you need to know the different sources that offer you an FD. You do not just have to reach a bank to get this through. You have other sources such as – NBFCs, and post offices that offer FDs too.

But, before you lock your money in a safe FD account, you would want to know some more things about Fixed deposits.

Fixed Deposits from Banks, NBFCs, and the Post Office

Now, you do not want to blindly believe that there is only one way around getting yourself an FD account. So, if you find out that the IDBI FD interest Rates are the highest, you wouldn’t walk right into it; you would do your research before you can get it done, right?

So, here we will speak about the different places you can get an FD from.

Banks:- You most probably know about this – banks have traditionally been offering fixed deposit tools to their customers for a very long time. Also, you need to know that every bank has a different set of interest rates for different time horizons. Not all of the banks follow the same interest rate – this also means you would have to check a lot of banks to end up with the best one.

NBFCs:- NBFCs, which are non-financial companies. They also give out a lot of banking services to their customers but do not have a banking license. These institutes are allowed to have traditional demand deposits, and they also offer loans. NBFCs also give their customers the option of fixed deposits. A tip: you need to know that NBFCs have higher interest rates on fixed deposits than banks would do.

Post Office:- You know the post office has a lot set up for its users. Like post office schemes and savings accounts – they do have a lot more to give, and one of them is a fixed deposit. You can opt for a post office fixed deposit, as they are too a trusted source for FDs.

Let us get to the major part of this discussion, shall we? The interest rates of fixed deposits in 2022.

The Interest Rates of Fixed Deposits in Post Offices

 

• For 1 Year – 5.5%
• For 2 to 3 Years – 5.5%
• For 3 to 5 Years – 6.70%

 

The Interest Rates of Fixed Deposits in Banks

 

• Punjab and Sind Bank FD – 3.00% to 5.30%
• State Bank of India FD – 5.30% to 5.40%
• Bank of India FD – 2.85% to 5.05%
• HDFC Bank FD – 2.50% to 5.60%
• IDFC Bank FD – 2.50% to 6.00%
• Bank of Baroda FD – 2.80% to 5.25%
• Axis Bank FD – 2.50% to 5.75%
• Canara Bank FD – 2.90% to 5.40%

 

The Interest Rates of Fixed Deposits in NBFCs

 

• Shriram City Union Finance FD – 7.75%
• Hawkins Cooker Ltd FD – 8%
• Muthoot Finance FD – 7.25%
• Bajaj Finserv FD – 6.80%
• HDFC Housing Finance FD – 6.70%
• Aditya Birla Capital FD – 6.45%
• Mahindra & Mahindra Finance Service Ltd FD – 6.05%
• KTDFC FD – 6.00%
• Sundram Finance FD – 5.80%

 

Attributes you Need to Know Before Opening your FD Account.

Have you been thinking about the FD in-depth? You are not too far from getting there. But before you do actually get started with a fixed deposit – there might be a few things you would have to think about.

– The set period is fixed, and you cannot withdraw your money before that period. But in some cases, you can withdraw your money, but premature withdrawal can only be possible when you pay the penalty for it.

– You will have to set up your financial goals before you can set up your FD account so you can set up the tenure that you want to be invested in the FD for.

– Make sure you look at the interest rates and mostly use a calculator to know how much your returns from the FD would be.

– Make use of the tax benefits that an FD will offer you.

– You can also take a loan against your fixed deposit – but only to 90% of the amount.

So, here we are at the end of our interest rate guide. Keep in mind that rates will change now and then, and you will have to do your part to keep a record before you start investing in them.

Conclusion

Now that you know the interest rates of fixed deposits, it can be easy for you to know where you want to put your money. You need to know the different rates in different banks, and NBFCs mean that you will have to do your part in the research. Also, as a disclaimer, you need to know that – these rates that are mentioned above keep changing according to the market, the bank or NBFC, and more. So just keep tabs on them.