Fixed Deposits (FDs) are one of the most popular and sought-after investment schemes. Thanks to competitive interest rates and flexible tenors, the secure and safe nature of the investment makes them all the more attractive. 


Since there are plenty of FD plans offered by both banks and Non-Banking Financial Corporations (NBFCs), choosing the one that’s right for you is essential. Thankfully, you can quickly and easily determine the best fixed deposit plans by taking the following factors into consideration. 

  • Rate of Interest

The higher the interest rate, the higher your returns will be. Therefore, the rate of interest of a fixed deposit plan is the most important factor that you would need to take into account. The interest rates will vary depending on the institution you opt to create an FD with. Therefore, it is advisable to compare multiple FD plans with each other to determine the one that offers the highest interest.  

  • Application Process

The fixed deposit application process will vary from one institution to another. And so, when you’re choosing the best FD plan for yourself, it is crucial to ensure that the application process is easy and hassle-free. Banks and NBFCs have now begun to offer a paperless FD account opening process that allows you to quickly open a fixed deposit at your convenience. 

  • Type of FD 

There are two different types of FD plans that you can opt for - cumulative FD and non-cumulative FD. In a cumulative FD, the interest gets accumulated and is paid out to you on maturity along with the principal. In the case of a non-cumulative FD, the interest is paid out periodically as per the chosen frequency. For instance, you can choose to get the interest payout on a non-cumulative FD on a monthly, quarterly, half-yearly, or annual basis. 

  • Ability to Avail a Loan

Many institutions provide you with the facility of availing a loan against your FD. You can opt for this feature during a financial emergency and avail a quick loan by using your deposit as a collateral. Depending on the institution, you may get up to a maximum of 90% of your deposit. The tenor of such loans are usually restricted to the tenor of your FD. Therefore, when determining the best fixed deposit scheme, it is advisable to ensure that it comes with this feature. 

  • Premature Withdrawal

Although many of the best FD plans offer premature withdrawal of your investment, there are quite a few that have restrictions. Remember to opt for a plan that comes with the premature withdrawal facility since it can be very helpful during emergencies. That said, also keep in mind that there’s a penalty for early withdrawals and that this penalty may vary depending on the institution that you opt for.

  • Credibility of the Institution 

Another major factor that you would have to consider when choosing the best FD plan for yourself is the credibility of the institution and the plan itself. 


In the case of NBFCs, both the institution and the FD plan are assessed and offered credit ratings by credit rating agencies like CRISIL and ICRA, among others. The higher the credit ratings, the more credible and safe the investment plan is. 


For banks, however, there usually aren’t any credit ratings to go by. But, you get insurance coverage on your FD to the tune of ₹5 Lakhs from Deposit Insurance and Credit Guarantee Corporation (DICGC). 

Ten of the Best FD Schemes for 3 years

Usually, banks tend to offer better interest rates for higher FD tenors like say 3 years as opposed to one or two-year fixed deposits. So, if you’re looking for a plan with the best FD return for a tenor of 3 years, here’s a list of 10 plans that you can consider. 


Interest Rate for Non-Senior Citizens (p.a.)

Interest Rate for Senior Citizens (p.a.)










Axis Bank 



Canara Bank 



Punjab and Sind Bank



Lakshmi Vilas Bank (LVB)



Yes Bank



AU Small Finance Bank



NBFC Schemes for 3 Years

Just like banks, NBFCs also offer some of the best FD plans with a tenor of 3 years with highly attractive interest rates. Check out some of the NBFC fixed deposit plans and their respective rates of interest down below. 


Interest Rate for Non-Senior Citizens (p.a.)

Interest Rate for Senior Citizens (p.a.)

Bajaj Finance FD



Mahindra Finance FD



PNB Housing Finance FD



Note: The interest rates mentioned above are as on 10th May, 2023 and are applicable for cumulative fixed deposits less than ₹1 Crore. Also, the interest rates are subject to change from time to time based on the NBFCs’ policies.


Thanks to the recent hike in the repo rates by the Reserve Bank of India, fixed deposit interest rates have seen a meteoric rise across all banks and NBFCs. This has directly led to FDs becoming more attractive than a host of other investment options. And seeing as you’re now aware of how to choose the best FD plan for yourself, go ahead and invest in one today. 


That said, don’t forget to compare multiple FD plans with one another. This way, you can ensure that you pick one that fits your needs. High interest rates shouldn’t be the only factor that you should look into when trying to determine the best FD plan. Keep in mind that safety and credibility of the fixed deposit and the institution offering it is also key. 


Here’s where a Bajaj Finance FD comes into the picture. It is safe, generates stable returns and offers highly competitive interest rates with an additional rate of 0.25% per annum for senior citizens. You can also use the online FD return calculator to compute the return on your investment.

That’s not all. You can avail a loan against your deposit and opt to prematurely withdraw them in the case of an emergency as well. 


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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Which financial institution offers one of the best FD rates in India?

Bajaj Finance FD, which you can avail from Bajaj Markets, is one of the best FD plans offered in the market. It comes with attractive interest rates, flexible tenor, a wide range of FD plans, easy application, and other innumerable benefits.

Which bank is safest for the best FD plan?

Generally, bank FDs are supposed to be one of the safest investment options and come with guaranteed returns. Also, you get an additional layer of protection in the form of insurance coverage on bank FDs to the tune of ₹5 Lakhs from Deposit Insurance and Credit Guarantee Corporation (DICGC). 


Alternatively, if you’re looking for NBFC FDs, you can avail Bajaj Finance FD from Bajaj Markets. Bajaj Finance FD is less volatile, offers competitive interest rates, and is not affected by any fluctuations in the market. This makes it one of the best FD plans in India in terms of safety. 

Are there any risks involved with FDs?

No, there are no risks involved with Fixed Deposits. It is one of the most secured investment options. The returns from FDs are not subjected to any market fluctuations or changes in interest rates.

Which is the most reliable FD Plan?

A reliable FD plan is something that’s safe and offers steady returns. Both banking institutions and NBFCs in India offer reliable FD plans with guaranteed returns. Bajaj Finance FD, for instance, carries an FAAA/Stable rating from CRISIL and an MAAA/Stable rating from ICRA, making it one of the best FD plans in the country right now. 

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