A fixed deposit figures prominently in the investment goals of an individual. Fixed deposits provide an easy way to earn higher returns on your investment. While there are other high-risk high-return instruments like stocks or mutual funds, probably nothing can beat the popularity and safety of a fixed deposit or FD.

FD schemes are ubiquitous; you can get them in all shapes and sizes. However, if you are looking to get the best FD interest rates in India, the following tips can give you a head start.

The Top-4 Tips To Find FDs With the Best Rates in India

1. Invest in a Corporate FD Scheme

Corporate FD schemes from Housing Finance Companies like PNB Housing Finance and some non-banking financial companies offer the best FD rates in India. Corporate FDs come in the same format as bank term deposits. You can also invest in a corporate FD scheme from the convenience of your home. Generally, corporate FDs offer interest rates of up to 6.70%, and the effective interest rate, or yield to maturity, can go up to 9.13%.

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Hence, corporate FD is an excellent scheme to earn the best FD rates in India.

2. Check the Credit Rating

Similar to a bank, a housing finance company or NBFC needs a license from the Reserve Bank of India to accept public deposits in FD schemes. Additionally, they need approval from the Ministry of Corporate Affairs (MCA). However, what marks them is the credit rating issued by institutions like CRISIL or ICRA. Generally, a CRISIL rating of FAA+ is regarded as the benchmark for safety. 

Hence, before you invest in an FD scheme, check the credit rating, as a fixed deposit with a top-class credit rating will not only give you the best FD rates in India but also optimal security.

3. Mix Non-Cumulative FD Schemes With Cumulative Schemes

Quite often, people choose non-cumulative FD schemes to earn a fixed amount every month or quarter. The quarterly or half-yearly interest rate is slightly higher than the monthly rate. However, if you want to get the best FD rates in India, you should have an appropriate mix of cumulative and non-cumulative FD schemes in your portfolio. 

Sample this – the 10-years’ FD scheme of PNB Housing Finance offers a yield to maturity of 9.13% per annum. On the contrary, when you select the monthly payout option, the interest rate comes down to 6.50%.

4. Choose a Long-Term FD Scheme

Here is a golden rule – if you want to get the best FD rates in India, you have to stay invested for long. Financial institutions generally offer 2-3% fewer interest rates for a short-term FD than a long-term one. Additionally, when you invest in a long-duration FD scheme, you are protected from interest rate fluctuations. For example, those who chose a long-term FD in 2010 are getting at least 4% higher interest rates than those who created FDs in 2019. 

Hence, it is better to invest in an FD scheme that offers you the facility of long duration.


Every investor in India wants to get the best FD rates from an FD scheme. However, very few are courageous enough to move out of conventional financial institutions. Opening a corporate FD is a sure-shot and secure way to earn higher returns on your hard-earned capital. As you earn more money, you can fulfill your financial goals much faster.

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