While investments are crucial for growing your finances, planning them is more important. The right investment choice can be instrumental in wealth generation while also offering other perks. You must pick one that best aligns with your financial aspirations with multiple investment options available. One smart option that offers secured returns is to invest FD online in a fixed deposit, a trusted vehicle for the Indian investor.

A fixed deposit is a secure investment option you can rely on for the risk-free growth of your money. The returns of an FD are dependent on the FD interest rates on offer, and once booked, the rate remains constant throughout the tenor. The tenor is also one factor that affects India’s FD rates. Issuers usually offer a tenor that ranges from a few months to up to 5 years, and the interest rate offered varies based on this timeline.

Typically, you will get the best rates on an FD if you choose a longer tenor, and there are upsides to doing so. Your corpus benefits from interest compounding, thus increasing your earnings significantly. You also get the highest interest rate on offer, which can serve as a hedge against inflation for the entire window. Read on for an idea of the FD rates offered by leading issuers for five years.

Banks and NBFCs with top FD interest rates for non-senior citizens

Disclaimer: All FD interest rates listed in the above table are as mentioned on official issuer portals as of 8th April 2022.

Bank and NBFCs with top FD interest rates for senior citizens

Disclaimer: All FD interest rates listed in the above table are as mentioned on official issuer portals as of 8th April 2022.

Factors that affect FD interest rates

Many factors influence the interest rates applicable to FDs. One of them is the tenor for investment. As explained above, issuers are more likely to offer higher interest rates for a long tenor than a short one. Apart from that, the following factors also influence a change in FD rates in India.

• Nation’s economic climate

Multiple factors contribute to the nation’s economic conditions, affecting India’s FD rates. The nation’s GDP presents a picture of the financial situation, and a higher GDP often leads to higher interest rates. Apart from this, inflation and recession also influence the FD interest rates. Generally, FD rates are higher if there is inflation so that people may consider saving instead of spending. As inflation decreases, the interest rates also decrease. 

Repo Rate, which is decided and levied by the RBI, also plays a role in determining the FD rates in India. It is the rate at which banks borrow money from the RBI. A rise in repo rate will, in turn, lead to a hike in FD interest rates.

• Age of the investor

The FD interest rates offered will also depend on your age. Senior citizens tend to get a higher interest rate than individuals below 60. FDs often serve as a steady income stream, granting them access to funds for day-to-day expenses.

With FD interest rates of up to 7.05% p.a., the Bajaj Finance Fixed Deposit is among the best secure investment options. You can start with an investment of Rs. 25,000 for a tenor of up to 5 years. Moreover, the digital provisions can help you get started in minutes. You can use the FD calculator available on the platform to see your returns for different FD interest rates, amounts, and tenors. This way, you can plan and start your investment accordingly. Invest online in 4 simple steps and start your investment with the best FD interest rates.