A fixed deposit is one of the best avenues to secure assured returns with minimal risks. It is a non-market-linked savings option that can offer steady returns. There are numerous issuers to choose from. 


One way to choose an issuer is by comparing the FD interest rates offered. The other lies in the rating given to the issuers by the top credit rating agencies, indicating the possibility of default on the rated instrument.


The better the rating, the higher the safety. Read on to know about the safest banks and NBFCs for FDs in India. 

Top Banks for FDs in India

The table below lists the CRISIL ratings of some of the top banks that issue fixed deposits in India- 

Sr No

List Of Banks



State Bank of India






Bank of Baroda






Axis Bank



Kotak Mahindra Bank



Canara Bank



Punjab National Bank



Union Bank of India






City Union Bank



KVB Bank



RBL Bank



IndusInd Bank



Bandhan Bank



AU Small Finance Bank


Disclaimer: Please note that the banks mentioned above are listed in no particular order.

List of Safest NBFCs in India

The table below lists the Non-Banking Financial Companies offering some of the safest fixed deposits in India: 

Sr. No. 

Name of the NBFC



Bajaj Finance Ltd 



PNB Housing Finance Ltd



Mahindra Finance Ltd



Shriram Finance Ltd



Sundaram Finance Ltd



LIC Housing Finance Ltd


Disclaimer: Please note that the banks mentioned above are listed in no particular order.

Guaranteed Safety by RBI Regulations

According to the RBI regulations, deposit insurance is a requirement for all commercial and cooperative banks in India. The Deposit Insurance and Credit Guarantee Corporation Scheme, a subsidiary of RBI, will offer insurance for your deposits. 


Under this, you will be insured up to ₹5 Lakhs for both the principal and the interest amount. It is important to note that if you have fixed deposits in multiple banks/NBFCs, the insurance limit will be applicable separately to each deposit.


Last year, RBI issued a new guideline regarding the interest on fixed deposits that have matured but are unclaimed. As per the new rule, if the deposit matures and is unclaimed, its interest rate will reduce to the rates for a savings account.


This means that if the applicable interest rate is 7% p.a, and you do not claim the maturity amount it will reduce to savings account interest rates appropriate. 


Generally, the interest rates on savings accounts are lower than that of fixed deposits. However, if the savings account interest rate is higher, you will continue receiving applicable rates.

Importance of Portfolio Diversification

Every investor should diversify their holdings to ensure steady growth of their money. When it comes to diversification, you need to have a good mix of high- and low-risk investment instruments. 


By doing this, you can leverage the gains of one instrument against the loss of another, if any. This enables you to ensure that your returns and investment amount are secure. Fixed Deposits are a low-risk instrument, offering a strong growth rate with relatively low risks. 


They provide a number of characteristics, such as the option to save in multiple FDs at once, a low minimum deposit amount (which starts at ₹10,000), and a simple and straightforward registration process. However, be sure to choose a bank that is safe in India for fixed deposits.

Things to Consider When Choosing an FD

In addition to knowing which is the safest bank or NBFC for fixed deposits in India, there are a few things you need to consider to maximise your returns. Here are a few things you should remember: 

  • Assess Investment Goals 

Evaluate your financial goals to know which is the right tenor and issuer. This will ensure that you get the expected returns and are not short-funded when the investment matures. 

  • Compare Interest Rates

Interest rates vary across issuers, and such comparison is a crucial step. Generally, corporate FDs have a higher interest rate as compared to bank deposits. Comparing and choosing the best rates will help you maximise your returns and financial growth.

  • Optimise Investments

With digitization, there are numerous calculators that give you an estimate of your returns. By getting an estimate before investing, you can tweak your investment amount and tenor to ensure you get the desired returns. 

  • Evaluate other features 

Consider other features, such as premature withdrawal, loan against FD, and multiple interest payout options. 

Risks Associated

Although you may have found the safest bank or NBFC in India for fixed deposits, it is essential to remember that there are some risks associated with your investment. Understanding these risks is crucial to ensure that you make an informed decision. 

  • Risk Pertaining to Liquidity

A fixed deposit is generally thought of as being a financial instrument with high liquidity. However, all deposits do not have a high liquidity rate. For example, tax-saver FDs have a minimum 5-year lock-in period. This prevents you from liquidating them prior to the date of maturity.

  • Risk of Default

There have been examples of banks turning default as recorded in recent years for a few cooperative banks which are smaller in size. According to the regulations, you as an investor would be eligible for a compensation of ₹5 Lakhs (principal + interest). 


However, if the amount comes to more than that, you run the risk of facing a loss. So, you should always look to save in the safest banks in India for fixed deposits. These are the ones that comply with RBI guidelines and have good ratings.

  • Risk of Inflation

Inflation has an impact on all types of savings, even the safest FD in India. For instance, if the interest rate on your FD is below the inflation rate, your returns would not be futile. 

  • Risk of High Taxation

Only if you are over 60-years-old, can you take advantage of the tax benefits on your investment as per Section 80 TTB. However, depending on the tax bracket you are in, investors in every other age group will get a different actual rate of return on their FD.

  • Risk of Reinvestment

When a fixed deposit matures, the investor has two options: either withdraw the principal or request an extension. If you choose the latter, your FD will be susceptible to the market's current interest rate. This could theoretically impact your savings.


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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Is your FD safe?

Yes. FDs offer stable returns as they are non-market linked investment avenues. In addition, there are certain RBI guidelines that ensure the safety of your returns. The safest banks in India for fixed deposits are those that comply with all RBI requirements. 


You should also check the ratings of the bank or NBFC to get an idea of the stability of your returns. 

Is it safe to invest with a bank?

Yes. The insurance from DICGC (Deposit Insurance and Credit Guarantee Corporation) has made it safer to invest in fixed deposits. This plan offers coverage of ₹5 Lakhs for both capital and interest. 

What if the bank goes insolvent?

In accordance with RBI regulations, depositors would receive insurance coverage for principal and interest amounts up to ₹5 Lakhs in the event that a bank becomes bankrupt.

How much money can you safely invest in an FD?

You can invest any amount you wish to in an FD, provided it is within the issuers’ limit. However, the DICGC only offers a cover of up to ₹5 Lakhs (principal + interest), so be sure to invest accordingly.


It is crucial to note that this cover is separate for the fixed deposits you hold with different issuers. 

Which bank is the best in India?

To know how safe a fixed deposit issuer is, look at the credit rating issued by the top agencies in India. These ratings give an idea about the stability of the issuer and thus the security of your investment. 


However, the rating is not definitive. As such, you need to do your due diligence in figuring out which is the safest bank or NBFC. 

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