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FD Interest Rates

Fixed Deposit Rates of All Banks - 2020

Last Updated 10th Aug 2020

6th August 2020 – RBI keeps Repo Rate unchanged at 4%

Banks FD Rates Senior Citizen FD Rates Tenure
PNB Housing Finance 7.00% - 7.35% 7.25% - 7.60% 12 months to 120 months
Bajaj Finance 6.90% - 7.10% 7.15% - 7.35% 12 months to 60 months
HDFC 6.35% - 6.45% 6.60% - 6.70% 33 months to 66 months
  • As per the current rates, highest FD rate is 7.60%.

Fixed Deposit Interest Rates Comparison 2020 in India

Bank FD Rate of Interest Senior Citizen FD Rates
SBI Fixed Deposit 2.90% - 5.40% 3.40% - 6.20%
HDFC Bank Fixed Deposit 2.50% - 5.50% 3.00% - 6.00%
ICICI Bank Fixed Deposit 2.50% - 5.50% 3.00% - 6.00%
Axis Bank 2.50% - 5.50% 2.50% - 6.15%
ICICI Home Finance 6.00% - 6.50% 6.25% - 6.75%
Kotak Bank 2.75% - 5.25% 3.25% - 5.75%
IDFC First Bank 3.00% - 7.00% 3.50% - 7.50%
Bank of Baroda 2.90% - 5.30% 3.40% - 5.80%
Citibank 2.75% - 3.90% 3.25% - 4.40%
IDBI Bank 3.00% - 5.50% 3.50% - 6.10%
Indian Bank 2.90% - 5.25% 3.40% - 5.75%
Indian Overseas Bank 3.50% - 5.45% 4.25% - 6.20%
OBC 3.00% - 5.30% 3.50% - 5.80%
PNB 3.00% - 5.30% 3.50% - 5.80%
HDFC 6.35% - 6.45% 6.60% - 6.70%
PNB Housing Finance 7.00% - 7.35% 7.25% - 7.60%
Allahabad Bank 3.05% - 5.50% 3.55% - 6.00%
Andhra Bank 3.50% - 5.45% 4.00% - 5.95%
Bank of India 3.25% - 5.35% 3.75% - 6.00%
Bank of Maharashtra 3.00% - 5.00% 3.50% - 5.50%
Canara Bank 3.00% - 5.50% 3.00% - 6.00%
Central Bank of India 3.00% - 5.10% 3.50% - 5.60%
Punjab and Sind Bank 3.50% - 5.55% 4.00% - 6.05%
UCO Bank 3.00% - 5.25% 3.25% - 5.75%
Union Bank of India 3.50% - 5.45% 4.00% - 5.95%
United Bank of India 3.00% - 5.30% 3.50% - 5.80%
Syndicate Bank 3.00% - 5.50% 3.00% - 6.00%
Yes Bank 5.00% - 7.00% 5.50% - 7.75%
Dhan Laxmi Bank 3.50% - 5.60% 4.00% - 6.10%
Bajaj Finance 6.90% - 7.10% 7.15% - 7.35%
Standard Chartered Bank 4.25% - 6.30% 4.25% - 6.30%
LIC Housing Finance 5.90% - 6.00% 6.15% - 6.25%
Federal Bank 2.75% - 5.60% 3.25% - 6.10%
AU Small Finance Bank 4.00% - 7.25% 4.50% - 7.75%
Corporation Bank 3.50% - 5.45% 4.00% - 5.95%
ESAF Small Finance Bank 5.00% - 7.50% 5.50% - 8.00%
IndusInd Bank 3.25% - 7.00% 3.75% - 7.50%
RBL Bank 4.00% - 7.25% 4.50% - 7.75%
DCB Bank 4.75% - 6.95% 5.25% - 7.45%
HSBC Bank 2.25% - 4.00% 2.75% - 5.25%
South Indian Bank 3.50% - 5.90% 4.00% - 6.40%
Bandhan Bank 3.25% - 6.25% 4.00% - 7.00%
Lakshmi Vilas Bank 3.75% - 6.75% 4.25% - 7.25%
Equitas Small Finance Bank 3.60% - 7.35% 4.20% - 7.95%
Jana Small Finance Bank 4.50% - 7.50% 5.00% - 8.00%
India Post Office 5.50% - 6.70% 5.50% - 6.70%
Karnataka Bank 3.50% - 5.70% 3.90% - 6.10%
DBS Bank 2.60% - 5.20% 2.60% - 5.20%
DHFL 8.50% - 9.25% 9.00% - 9.75%
Jammu And Kashmir Bank 3.00% - 5.30% 3.50% - 5.80%
Ujjivan Small Finance Bank 3.50% - 6.95% 4.00% - 7.45%
Fincare Small Finance Bank 3.50% - 7.50% 4.00% - 8.00%
Karur Vysya Bank 3.50% - 5.85% 3.50% - 6.35%

Invest in FDs with Banks or NBFCs that have the highest ratings of AAA, rated by ICRA and CRISIL and get assured returns of up to 7.60%.

Highest FD Interest Rates

A comparison of FD rates of all banks across all tenure shows that currently, IDFC Bank offers the highest FD rate of 7.50% for deposits with a tenure of 2 years to 3 years borrowers below 60 years age. For Senior Citizens FD, IDFC Bank has the best interest rate of 8.00% for a tenure of 366 Days to 2 Years .

Similarly, If you compare fixed deposit rates of small finance banks as per the latest FD rates, Fincare Small Finance Bank offers the best FD rate of 8.00% for deposits with a tenure of 48 Months 1 Day to 59 Months , thus making it a good choice for depositors looking to earn high interest rate without compromising on the safety of their deposits

Best FD Interest Rates in India

FD Tenure Highest FD Rate Banks with highest FD rate
1 year FD 7.25% Jana Small Finance Bank
2 year FD 7.50% Jana Small Finance Bank
3 year FD 7.50% Jana Small Finance Bank
5 year FD 7.25% Jana Small Finance Bank

The top bank for 1 year FD is Jana Small Finance Bank as it offers highest interest rate of 7.25% on regular term deposits. For 5 year FD, Jana Small Finance Bank should be your top choice as it’s rate of interest is maximum at 7.25%.

Best 1 Year FD Rates

Latest year FD rates range from 4.15% to 7.25%. Jana Small Finance Bank has the highest interest rate of 7.25% for a one year fixed deposit. If you are looking to open a 1 year FD, do a comparison of top 5 banks with highest 1 year rates on FDs as on 10 Aug 2020.

Highest 1 Year FD Rates as on 10 Aug 2020

Banks 1 Year FD Rate
Jana Small Finance Bank 7.25%
IndusInd Bank 7.00%
RBL Bank 7.00%
Ujjivan Small Finance Bank 6.95%
Dena Bank 6.75%

Best 2 Year FD Rates

Current 2 year FD rates range from 4.35% to 7.50%. Jana Small Finance Bank offer the highest interest rate of 7.50% for 2 year fixed deposit.

Highest 2 Year FD Rates as on 10 Aug 2020

Banks 2 Year FD Rate
Jana Small Finance Bank 7.50%
Equitas Small Finance Bank 7.10%
Yes Bank 7.00%
IndusInd Bank 7.00%
RBL Bank 7.00%

Best 3 Year FD Rates

As on 10 Aug 2020, 3 year interest rate on fixed deposits range from 4.70% to 7.50%. Jana Small Finance Bank has the best rate of 7.50% for 3 year fixed deposit.

Highest 3 Year FD Rates as on 10 Aug 2020

Banks 3 Year FD Rate
Jana Small Finance Bank 7.50%
RBL Bank 7.25%
Equitas Small Finance Bank 7.15%
Yes Bank 7.00%
Ujjivan Small Finance Bank 6.50%

Best 5 Year FD Rates

As per the existing rates 5 year FD rates range from 4.50% to 7.25%. Jana Small Finance Bank a is the best bank to open a 5 year FD as it has the highest rate of 7.25% .

Highest 5 Year FD Rates as on 10 Aug 2020

Banks 5 Year FD Rate
Jana Small Finance Bank 7.25%
IDFC First Bank 6.75%
Equitas Small Finance Bank 6.75%
India Post Office 6.70%
Dena Bank 6.30%

Factors that affect FD Rates

Fixed Deposits are an important source of funds for banks which they lend to make profits. Bank FD interest rates varies by the amount deposited, tenure of deposit, type of depositor as well as the amount of funding required by banks from FDs. List of factors that determine the interest rates on banks FD are:

  • Deposit Amount: Banks offer lower interest rate on bulk deposits of more than Rs 1 crore and high interest rate on deposits of less than Rs 1 crore.
  • Deposit Tenure: Banks offer lower rate of interest on deposits with a shorter tenure. Based on current rates, the highest rate on FDs with a tenure of less than 1 year is 7.50% and highest FD interest rates on the tenure of 10 years is 7.25%
  • Depositor Type: All banks in India offer higher interest on senior citizens FDs. Currently, the interest rate on senior citizens FDs ranges from 2.50% to 9.75% depending on the deposit amount and deposit tenure.
  • Funding Requirement: Large banks like SBI and HDFC Bank which have a wide access to low cost savings account typically look to raise lower amount from FDs and hence offer lower interest rates compared to new banks and small finance banks which are dependent on term deposits. Hence, small finance banks are relatively new private sector banks that will always offer higher interest rate on FDs opened with them.

Fixed Deposit Interest Rates for Senior Citizens

Highest FD rate for Senior Citizens is currently at 8.00% offered by IDFC Bank for 36 Months to 366 Days to 2 Years . Banks FD Interest offered to senior citizens is typically 25-75 basis points higher than corresponding rates on regular FDs other individuals. Senior citizens are required to submit their age proof to be eligible for higher rates on Senior Citizens FD

  • Age of senior citizen should be 60 or more on the date of investment.
  • Tenure on senior citizens FD is between 7 days to 10 years in most of the banks.
  • Senior citizens FDs earn 2.50% to 9.75% higher interest compared to regular deposit rates.
  • Loans against FDs are available on senior citizen FD.
  • Penalties are applicable in case of premature withdrawal of FDs of senior citizens as applicable to other regular accounts.

FD Interest Rates Calculator

Using the FD calculator, you can find out the total interest you will earn at the end of tenure.

The formula for calculating fixed deposit interest rates is shown below
A = P * (1+ r/n) ^ n*t
I = A – P
A = Maturity value
P = Principal amount
r = rate of interest
t = Number of years
n = Compounded interest frequency
I = Interest earned amount

Tax Savings Fixed Deposit Interest Rates

Tax Saving FD Minimum deposit Tax Saving
SBI Tax Savings Scheme ₹ 1,000 5.40%
HDFC Bank 5 Year Tax Saving Fixed Deposit ₹ 100 5.50%
Axis Bank Tax Saver Fixed Deposit ₹ 100 5.50%
Kotak Bank Tax Saving Fixed Deposit ₹ 100 5.25%
ICICI Bank Tax Saving Fixed Deposit ₹ 10,000 5.50%
Citibank Tax Saver Deposits ₹ 1,000 3.90%
Bank of Baroda Tax Savings Term Deposit N.A 5.30%
Corporation Bank Tax Saver Plus Deposit Scheme ₹ 100 5.45%
PNB Tax Saver Fixed Deposit Scheme ₹ 100 5.30%
RBL Bank Tax Savings Fixed Deposits N.A 7.25%
Central Bank of India Tax Saving Deposit ₹ 100 5.10%
Syndicate Bank SyndTaxShield Deposit ₹ 100 5.50%
IDBI Bank Suvidha Tax Saving Fixed Deposit N.A 5.50%

Flexi Deposit

Flexi deposit allows the depositor to link its fixed deposit account to a savings bank account and allows his surplus savings to move in and out of the linked FD account as per his funds requirements. This facility, known as Auto Sweep facility allows a depositor to earn higher interest rates on surplus amount in his savings account along with retaining the flexibility of withdrawing money from the account when required.

Auto Sweep Facility

  • A sweep-in facility facilitates automatic transfer of surplus funds from your savings deposit account into your fixed deposit account
  • This facility allows you to earn a higher rate of interest on your deposited money, which is generally higher than a regular savings account, while it varies from bank to bank. Still, in most of the cases, you earn a 1 year FD rate when your money is swept from Savings Account to FD Account. Currently, 1 year FD interest rates are 4.15% to 7.50%
  • With a sweep-in-facility, you may also interlink multiple deposits to your Savings Bank Account
  • You can withdraw the amount from your fixed deposit in case of any emergency without breaking complete FD or levying any penalty
  • Banks do not levy any additional fees on this facility unlike overdraft facility

Fixed Deposit during Coronavirus

RBI has announced a repo rate cut of 75 bps in response to coronavirus lockdown. In response to this rate cut, banks may reduce FD rates in the near future which could adversely impact the interests of fixed depositors.

FAQs

What is the minimum amount for Fixed Deposit?

You can deposit a minimum amount of ₹ 1,000 in FD account but there is no upper cap on deposit amount.

Which is highest interest rate on fixed deposit?

The highest interest rate on fixed deposits in the market is offered by Jana Small Finance Bank at 7.50% for regular FD and 8.00% for senior citizens.

Can I get monthly interest on FD?

Yes, you can get monthly interest on FD if you choose monthly interest payout option. In Fixed Deposit, you earn interest on the principal amount, which can be calculated monthly, quarterly, half yearly or annually.

Can I withdraw FD online?

Yes, you can withdraw FD amount online before FD maturity but bank may levy a penalty by paying lower interest rate or charging a penalty for premature withdrawal.

In how many years FD will double?

The tenure within which the sum invested in FD will double depends directly on these factors; the rate of interest, amount invested, and the tenure of the deposit.

Who are eligible to invest in FD schemes?

The following are eligible to invest in FD schemes- Resident Individuals, HUFs, NRIs, Firms, and Charitable Trusts, while others can apply for the scheme by submitting an offline application.

What are the documents required for opening FD?

The following documents are required for opening a Bank FD Account

  • Identity proof
  • Address proof
  • Signature proof
  • Age proof (for senior citizens)

What is the interest rate on a Bank FD for senior citizens?

Senior citizens get higher rates between 0.25 and 0.75 percent on their FD which is higher than any of the regular deposit schemes offered by leading banks and NBFCs.

Is FD a good investment?

Choosing FD is a good decision if you are looking to earn a competitive rate of interest without taking any risk and have surplus money to invest for a relatively long period of time. It is one of the safest investment options available in the market.

What is the difference between RD or FD?

Recurring Deposit (RD) lets you deposit a certain amount each month in the account to earn interest on the invested sum for a specified tenure on a predetermined rate of interest. Whereas, Fixed Deposit (FD) is created by investing a lumpsum amount for a specified tenure on a predetermined rate of interest.

What is the minimum tenure for which I can open an account in FD?

You can open a fixed deposit account for minimum of 7 days in banks and for 1 year in NBFCs.

How much can be the maximum tenure for which I can open an account in FD?

The maximum tenure for FD in NBFCs is 5-7 years, whereas banks provide maximum tenure of 10 years for fixed deposit.

When do I become accountable for tax on FD?

As per Income Tax Act 1961, under section 194A, when the interest earned on FD in a financial year exceeds ₹ 40,000, TDS of 10% is applicable on the credited interest. A depositor may also furnish Form 15G/15H to avail exemption from paying tax on his interest income.

Does investment made into term deposits provide any benefits?

Yes, investing in term deposits provides many benefits, including a fixed rate return on your FD investment, flexibility to withdraw the FD at any time before its maturity. Besides, an individual can also avail loans up to the amount invested in the FD along with the overdraft facility from the bank against the FDs.

Can I redeem my fixed deposits before the original term?

Yes, an FD can be closed before its original term. If the FD is closed before completing the original term of the deposit, the interest will be paid as per the interest rate applicable on the date of deposit for the period it has remained with the bank. However, some banks may also levy a penalty prescribed by them on the date of deposit.

When can I renew my FD?

The person may renew his/her FD on maturity by submitting a duly filled FD Application Form, 15 days before the date of maturity, along with the old FD receipt with a revenue stamp of requisite value on it. However, your FD renewal will be subjected to the terms and conditions of the FD scheme as applicable to the maturity date of the old deposit.

Can I take a loan against fixed deposits?

Yes, many lenders provide the facility to take loans against fixed deposits. The bank generally provides loans on your FD up to the extent of 75-95%, depending upon the lender and loan tenure. Usually, loan against FDs is quick and cheap loans available to meet financial emergencies.

Can I opt for an auto-renewal facility while opening a FD?

Can I opt for an auto-renewal facility while opening a FD?

Why does the Fixed Deposit rate fluctuate?

The fixed deposit interest rate fluctuates due to changes in the prevailing macro-economic conditions. The various factors responsible for the change in fixed deposit interest rates include a higher rate of inflation, liquidity condition, and demand and supply conditions.

What is the maximum exemption that I can get under tax saver Fds?

Under tax saver FD, you are eligible for tax deduction under Section 80C of Income Tax for a maximum amount os ₹ 1,50,000 in a year.

Do banks charge a penalty for early withdrawal of FD?

A fixed deposit is like a commitment where you have committed a certain sum of money with the bank for a specified tenure, and in return, the bank gives you interest at a specified rate. So, when you break the commitment in between, banks do charge a penalty on the surrender value, and you get less return on the invested sum.

Can I get monthly interest on a fixed deposit?

At the time of creating the fixed deposit account, you can choose for a monthly payment of interest, among other options such as quarterly, half-yearly, and annual interest payments.

What is tax saving FD?

The fixed deposit by investing in which you get tax deduction under Section 80C of the Income Tax is tax saving FD. The maximum deduction available is ₹ 1,50,000, with 5 years of the lock-in period.


Our News - Aug 2020
  • 2020-08-10 : Survey reveals Coronavirus changed Indian outlook to personal financial matters news
    Scripbox Financial Freedom Survey 2020 was conducted to assess the personal financial outlook of Indians post-COVID 19. The survey revealed that 50% of respondents plan to remove discretionary spending and save more for an emergency. Further, the survey revealed that 28% will cut back on non-essentials, 22% will save to have a financial corpus to dip into during an emergency and 10% said that they will reduce their EMI burden.
  • 2020-08-10 : Bank of India revised its FD rates news
    Bank of India changed its Fixed deposits rates with effect from 5 August 2020 to 31 March 2020. The FD rates for 7 to 45 days is 3.25%. for 46 to 179 days it is 4.25% and it is 4.75% for 180 days to one year. Further, the Fd rates for 1 to 2 year is 5.35% and it stands at 5.25% for 2 to 10 years.
  • 2020-08-07 : DCB Bank introduced virtual video booth for customer KYC news
    DCB Bank striving to assist customers during the new normal of social distancing unveiled the virtual video booth for customer KYC for contactless onboarding of new customers. This enables any individuals to apply for DCB Bank FD through video-based KYC without visiting the branch or meeting a DCB Bank representative.
  • 2020-08-06 : SBI reports Q1FY21 net profit of Rs. 4776.50 crore news
    State Bank of India reported a net profit of Rs.4776.50 crores for the period ended June 30, 2020, as against a net profit of Rs.6909.95 crores for the period ended March 31, 2020. The Bank posted a total income of Rs.87984.33 crores backed by retail loans like home, personal, car, two-wheeler, and gold loan along with the business and mudra loans. Further, the bank total deposits which include FD, RD, current and savings account grew at 15.96 per cent YoY.
  • 2020-08-04 : Banks fresh fixed deposits in Q1 double from last year news
    Banks money in fixed deposits increased by Rs 6.1 lakh crore during the period April to July 3. This is more than twice the Rs 3 lakh crore of FDs added by banks during the same period in the previous financial year. The surge in FDs is an indication that investors expect interest rates to come down further.
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