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Highest FD Interest Rate & Scheme

Highest Fixed Deposit Rates 2020

Last Updated 23rd Sep 2020

Currently, Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank provides the highest returns on fixed deposits ranging upto 7.50% and hence, is one of the best banks for investing in a fixed deposit. You can invest in Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank FD for a tenure ranging between 7 days to 10 years. It also provides attractive interest rates on fixed deposits to Senior Citizens at 8.00%.

Banks Bank FD Rate of Interest Senior Citizen FD Rates Tenure
ESAF Small Finance Bank 5.00% - 7.50% 5.50% - 8.00% 7 days to 10 years
Fincare Small Finance Bank 3.50% - 7.50% 4.00% - 8.00% 7 days to 84 months
Jana Small Finance Bank 3.50% - 7.50% 4.00% - 8.00% 7 days to 10 years

Best Banks for Fixed Deposits Rates

FD rates of banks are determined by changes in RBI monetary policy such as repo rate, base rate, etc., the internal liquidity position of banks, economic conditions and the level of credit demand. The fixed deposits interest rates also vary by deposit amount, deposit tenure and type of depositor. You can invest in banks fixed deposits for a tenure ranging between 7 days to 10 years. Further, several banks offer the highest FD rates for a specific tenure. Thus, you must carefully determine the tenure of fixed deposits as per your financial goal. Here is a list of 10 top banks with the highest FD rates for a 5-year duration.

Bank FD Rate of Interest Senior Citizen FD Rates
Jana Small Finance Bank 7.00% 7.50%
Lakshmi Vilas Bank 6.10% 6.60%
LIC Housing Finance 6.00% 6.25%
Standard Chartered Bank 6.00% 6.00%
Bandhan Bank 6.00% 6.75%
Karnataka Bank 5.65% 6.05%
IDBI Bank 5.50% 6.10%
Axis Bank 5.50% 6.00%
SBI 5.40% 6.20%
Allahabad Bank 5.40% 5.90%

Currently, Jana Small Finance Bank offer highest FD rates ranging between 7.00% for a tenure of 5 years and can be considered as the best choice to open FD for a 5 year period.

Latest FD schemes for Senior Citizens

Senior Citizens who are above the age of 60 years can invest in FD schemes for Senior Citizens. The rate of interest offered on FD schemes for senior citizens is higher by 0.25% to 0.75% than a normal fixed deposit. Here is a list of top banks that offer FD schemes for senior citizens.

Bank Senior Citizen FD Rates Tenure
ESAF Small Finance Bank 5.50 - 8.00% 7 days to 10 years
Fincare Small Finance Bank 4.00 - 8.00% 7 days to 84 months
Jana Small Finance Bank 4.00 - 8.00% 7 days to 10 years
Equitas Small Finance Bank 4.20 - 7.95% 7 days to 10 years
AU Small Finance Bank 4.50 - 7.75% 7 days to 120 months

Currently, Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank provides highest rates on Senior Citizens fixed deposits at an interest ranging between 5.50 to 8.00%.

Current Non-Bank FD Plans

If you are planning to invest in FD schemes of NBFCs (Non-Banking Financial Companies), then you must invest in fixed deposits that are highly credible to reduce risks on your investments. Although, most of the NBFCs are AAA rated by highly authorized credit agencies, have lower risk of default and offers high-interest rates than banks. Here is a list of top 5 NBFCs that offer the highest interest rates on fixed deposits.

Bank FD Rate of Interest Senior Citizen FD Rates Tenure
Bajaj Finserv 6.90 - 7.10% 7.15 - 7.35% 12 months to 60 months
PNB Housing Finance 6.20 - 6.70% 6.70 - 7.20% 12 months to 120 months
ICICI Home Finance 6.00 - 6.50% 6.25 - 6.75% 12 months to 120 months
HDFC 6.35 - 6.45% 6.60 - 6.70% 33 months to 66 months
LIC Housing Finance 5.90 - 6.00% 6.15 - 6.25% 1 year to 5 years

Small Finance Bank FD Rates

While banks are considered as a more reliable option to invest in schemes like fixed deposits, investing in a Small finance bank, FD is also a good option. Several small finance banks are also covered under the depositor insurance program of Deposit Insurance and Credit Guarantee Corporation (DICGC). Hence, you can invest in FD schemes of the finance banks.

Bank FD Rate of Interest Senior Citizen FD Rates Tenure
ESAF Small Finance Bank 5.00 - 7.50% 5.50 - 8.00% 7 days to 10 years
Fincare Small Finance Bank 3.50 - 7.50% 4.00 - 8.00% 7 days to 84 months
Jana Small Finance Bank 3.50 - 7.50% 4.00 - 8.00% 7 days to 10 years
Equitas Small Finance Bank 3.60 - 7.35% 4.20 - 7.95% 7 days to 10 years
AU Small Finance Bank 4.00 - 7.25% 4.50 - 7.75% 7 days to 120 months

As per the current rates, Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank offers the highest rate ranging between 5.00% to 7.50% on fixed deposits. You can invest in Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank FD scheme for a tenure upto 7 days to 10 years.

Current Tax-Saving FD Plans

Investing in fixed deposits provides good returns on your investment; however, you have to pay tax on your investment as per your Income Tax slab rate. Tax-saving Fixed deposit is a special type of deposit that allows depositors to claim tax deductions up to ₹ 1,50,000 on interest earned on fixed deposit. The tax-free FD allows you to invest for a minimum lock-in period of 5 years. Here is a list of top 5 banks that provides maximum interest on tax-saving FD.

Bank FD Interest Rates
Fincare Small Finance Bank 3.50% - 7.50%
Jana Small Finance Bank 3.50% - 7.50%
AU Small Finance Bank 4.00% - 7.25%
RBL Bank 4.00% - 7.25%
Bajaj Finserv 6.90% - 7.10%

FAQs

Which bank is best for investing in fixed deposits?

As per the current rates, Fincare Small Finance Bank, Jana Small Finance Bank, ESAF Small Finance Bank is offering the highest interest rate on fixed deposits ranging upto 7.50% and thus can be considered as one of the best banks for investing in Fixed deposits.

Which bank is best for investing in tax-saving Fixed Deposits?

Presently, Fincare Small Finance Bank, Jana Small Finance Bank can be considered as the best bank for investing in tax-saving fixed deposits as it offers the highest interest rate ranging upto 7.50%.

Which NBFC or HFC is best for investing in a fixed deposit?

As per the current rates, Bajaj Finserv is offering the highest interest rate on fixed deposits upto 7.10% and thus can be considered as one of the best HFC for investing in Fixed deposits.

What are the factors you must consider to invest in the Best Fixed Deposit Scheme?

The interest rate on FD schemes offered by Banks and Non-Banking Financial Institutions depend on factors like amount deposited, tenure of deposits and type of depositors. There are several institutions that offer highest FD rates for a specific tenure. You must compare the FD rates of different institutions for different tenures before investing in a fixed deposit.


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