Fixed Deposit Interest Rates 2020: Best FD Interest Rate
FD INTEREST RATE INDIA

Fixed Deposit Interest Rates 2020: Best FD Interest Rate

Fixed deposits are the most popular investment but not the best investment because of low interest rates. However you can invest in FDs for a short term goal to save money for an upcoming expense and earn interest on that money.

Let’s discuss a few important things about FDs –

  • You can save income tax through the tax-saving fixed deposits under 80C. They have a fixed tenure of 5 years with a maximum investment limit of Rs 1,50,000.
  • If your interest income exceeds Rs 10,000 per bank in a financial year, the bank deducts  10% TDS on the interest earned. 
  • The banks charge a fee for premature mature withdrawal that varies from bank to bank.

It’s time to get into the depth of different bank’s FD interest rates. 

Best Highest Fixed Deposit Interest Rates

Let’s compare the top 11 banks/companies in India that allow you save more money with higher FD interest rates. If you check the table below none of the commercial bank is in the top-3 positions because a very few commercial banks offer you decent FD interest rates.

I have curate below the list of top 11 highest FD interest rates paying banks/companies.

BankInterest Rate Individual
(1 Yr)
Interest Rate Senior Citizen 
(1Yr)
Ujjivan Small Finance Bank8.00%8.50%
Bajaj Finserv7.60%7.85%
AU Small Finance Bank7.30%7.80%
Yes bank7.25%7.75%
IDFC First Bank7.25%7.75%
Lakshmi Vilas Bank7.10%7.35%
Bandhan bank6.75%7.50%
RBL Bank6.75%7.25%
Indian bank6.45%6.45%
Axis6.40%7.05%

Best Highest Fixed Deposit Interest Rates on Tax Saver FDs

I am providing you details of top 5 banks who are giving the highest interest rates on Tax Saver FDs. These are as below.

#1. Yes bank 

Yes bank is the highest interest paying bank on its 5-years Tax saver FD. You can invest a maximum of Rs. 1.50 lakh and enjoy tax benefits. 

Let’s check the FD interest rate on Yes bank tax saver FDs.

  • For Individual – 7.25%
  • For Senior citizen – 7.75%

#2. IDFC First Bank 

IDFC First Bank also offers tax savings benefits on its 5-years Tax saver FD. Maximum investment is restricted to Rs. 1.50 lakh per year. 

Let’s check the FD interest rate on IDFC bank tax saver FDs.

  • For Individual – 7.25%
  • For Senior citizen – 7.75%

#3. Lakshmi Vilas Bank 

Lakshmi Vilas Bank also offers tax saver FD up to Rs. 1.50 lakh investment per year. LVB offers better interest rates to senior citizens.

Let’s check the FD interest rate on Lakshmi Vilas bank tax saver FDs.

  • For Individual – 6.50%
  • For Senior citizen – 7.10%

#4. ICICI bank 

ICICI bank is paying a good return with tax savings benefits on its 5-years Tax saver FD. You can invest a maximum of Rs. 1.50 lakh. 

Let’s check the FD interest rate on ICICI tax saver FDs.

  • For Individual – 6.00%
  • For Senior citizen – 6.50%

 #5. Karur Vysya Bank 

KVB is another bank in the bandwagon. Let’s check the FD interest rate on Karur Vysya bank tax saver FDs.

  • For Individual – 6.45%
  • For Senior citizen – 6.50%

Check out Latest savings bank account interest rate

Fixed Deposit Interest Rate Comparison 

You can compare FD interest rates of all the banks so that you can easily take an informed decision while selecting a bank for fixed deposit investment. 

Here you would see, the private banks are paying better FD interest rates than public sector banks.

BankInterest Rate RegularInterest Rate Senior Citizen
State Bank of India3.50% – 5.70%4.00% – 6.20%
Yes bank5.00% – 7.50%5.50% – 8.00%
Bandhan bank3.50% – 6.75%4.25% – 7.50%
HDFC3.00% – 6.00%3.50% – 6.50%
ICICI3.50% – 6.00%4.00% – 6.00%
Axis3.50% – 6.50%3.50% – 7.00%
Indian bank4.95% – 6.45%4.95% – 6.45%
Karur Vysya3.75% – 6.30%4.95% – 6.80%
Indian Overseas4.50% – 6.20%5.25% – 6.85%
Federal Bank3.50% – 6.50%4.00% – 7.00%
Andhra Bank4.00% – 5.90%4.00% – 5.90%
PNB4.25 – 5.80%4.75% – 6.30%
Canara Bank4.25% – 5.80%4.25% – 6.30%
Bank of Baroda3.50% – 5.70%4.00% – 6.25%
Lakshmi Vilas Bank4.00% – 7.25%4.00% – 7.85%
IDFC First Bank4.00% – 7.50%4.50% – 8.00%
RBL Bank5.20% – 7.50%5.70% – 8.00%
Ujjivan Small Finance Bank5.50% – 8.10%6.00% – 8.60%
Au Small Finance Bank5.00% – 7.53%5.50% – 8.03%
Bajaj Finserv7.60% – 7.80%7.85% – 8.05%

You would like to checkLatest PPF investment interest rates

Banks FD Interest Rates in India 

Let’s discuss top 20 banks FD interest rates in India.

#1. Ujjivan Small Finance Bank FD Interest Rates 2020

The first position is acquired in this small finance bank who pays almost 1.5x FD interest rates than some commercial banks. You can enjoy high-interest rates with Ujjval Small Finance bank.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 Days to 29 Days5.506.00
30 Days to 89 Days6.106.60
90 Days to 179 Days6.607.10
180 Days to 364 Days7.007.50
1 Year to 2 Years8.008.50
2 Years and 1 Day to 734 Days7.508.00
735 Days8.008.50
736 Days to 798 Days7.508.00
799 Days8.108.60
800 Days to 3 Years7.508.00
3 Years and 1 Day to 5 Years7.007.50
5 Years and 1 Day to 10 Years6.507.00

#2. Au Small Finance Bank FD Interest Rates 2020

Another small finance bank that offers high interest on FDs is Au Small Finance Bank.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 Days to 1 Month 15 Days5.00%5.50%
1 Month 16 Days to 3 Months5.75%6.25%
3 Months 1 Day to 6 Months6.25%6.75%
6 Months 1 Day to 12 Months6.75%7.25%
12 Months 1 Day to 15 Months7.30%7.80%
15 Months 1 Day to 18 Months7.25%7.75%
18 Months 1 Day to 24 Months7.25%7.75%
24 Months 1 Day to 36 Months7.53%8.03%
36 Months 1 Day to 45 Months7.25%7.75%
45 Months 1 Day to 60 Months7.25%7.75%
60 Months 1 Day to 120 Months7.00%7.50%

#3. IDFC First Bank FD Interest Rates 2020

IDFC First bank is among the higher interest paying banks in India. You can check the IDFC fixed deposit interest slabs in the table below.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 Days to 14 Days4.004.50
15 Days to 29 Days5.005.50
30 Days to 45 Days6.256.75
46 Days to 90 Days6.506.75
91 Days to 180 Days6.757.00
181 days to less than 1 year7.007.50
1 year to 499 days7.257.75
500 days7.508.00
501 days to 2 years7.257.75
2 years onwards7.257.75
Tax saver (5 years)7.257.75

#4. RBL Bank Bank FD Interest Rates 2020

You will enjoy high rates of FD interest while having a fixed deposit in RBL Bank. They pay as high as 7.60% interest for a 3 years term deposit.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7 days to 14 days5.20%5.70%
15 days to 45 days5.45%5.95%
46 days to 90 days5.95%6.45%
91 days to less than 6 months6.15%6.65%
6 months to less than 12 months6.65%7.15%
12 months6.75%7.25%
12 months 1 day to less than 15 months7.05%7.55%
15 months to less than 18 months7.15%7.65%
18 months7.50%8.00%
More than 18 months to less than 24 months7.40%7.90%
24 months7.30%7.80%
More than 24 months to less then 36 months7.30%7.80%
36 months7.60%8.10%
More than 36 months to 60 months7.50%8.00%
More than 60 months to 120 months7.25%7.75%

Also readNational saving certificate interest rate

#5. Yes Bank FD Interest Rates 2020

Yes bank is one of the highest FD interest paying commercial banks in India. Yes bank pay as high as 7.50% return to an individual while 7.90% interest to a senior citizen.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 45 days5.005.50
46 days to 6 months6.256.75
6 months to less than 9 months6.857.35
9 months  to less than 1 year 7.157.65
1 year onwards7.257.75

12 months 10 days to 12 months 20 days
7.407.90

18 months 8 days to 18 months 18 days
7.407.90
2 years to less than 3 years7.508.00
Tax saver7.257.75

#6. Lakshmi Vilas Bank FD Interest Rates 2020

Lakhsmi Vilas bank offers highest interest rate @ 7.25% for 500 days tenure.

DurationInterest Rate Regular
(%ge)
Interest Rate Senior Citizen
(%ge)
7-14 Days4.004.00
15-30 Days4.254.25
31-45 Days4.754.75
46-90 Days5.255.25
91-120 Days5.756.25
121-150 Days6.006.50
151-180 Days6.256.75
181 – 364 Days6.507.00
365 Days to 499 Days6.757.35
500 Days7.257.85
501 Days to less than 3 Years6.757.35
3 Years to less than 5 Years6.507.10
5 Years to 10 Years6.507.10

#7. SBI FD Interest Rates 2020

The largest bank of India has reduced interest rate to 0.5% for an individual earlier the interest rate on a 1-year FD was 5.50% which is now reduced to 5%. 

Similarly, senior citizens were earlier getting 6%, and will now get 5.50% interest on 1-year fixed deposit.

Let’s check their SBI interest rates on fixed deposits for the different time periods.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 45 days3.504.00
46 days to 179 days4.505.00
180 days to 210 days5.005.50
211 days to less than 1 year5.005.50
1 year to less than 2 year5.706.20
2 years to less than 3 years5.706.20
3 years to less than 5 years5.706.20
5 years and up to 10 years5.706.20

Check out how banks calculate interest rate

#8. HDFC Bank FD Interest Rates 2020

HDFC bank offers flexibility to start a fixed deposit right from your home with the help of netbanking. HDFC bank also provides good returns on FD that varies on the duration of FD. 

Let’s have a look at different HDFC fixed deposit interest rates.

DurationInterest Rate Regular
(%ge)
Interest Rates For Senior Citizen 
(%ge)
7 – 14 days3.00%3.50%
15 – 29 days3.50%4.00%
30 – 45 days4.25%4.75%
46 – 60 days4.75%5.25%
61 – 90 days4.75%5.25%
91 days – 6 months4.75%5.25%
6 mnths  – 9 mnths5.25%5.75%
9 mnths < 1 Year5.50%6.00%
1 Year5.80%6.30%
1 year – 2 years5.80%6.30%
2 years – 3 years6.00%6.50%
3 year – 5 years6.00%6.50%
5 years – 10 years6.00%6.50%

#9. ICICI Bank FD Interest Rates 2020

ICICI bank always stays ahead in adopting world-class technology. ICICI  also offers better FD interest rates along with tax saver FDs to enjoy good returns along with tax savings.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 14 days3.504.00
15 days to 29 days3.754.25
30 days to 45 days4.254.75
46 days to 184 days4.755.25
185 days to 289 days5.255.75
290 days to less than 1 year5.506.00
1 year to less than 2 year5.806.30
2 years onwards6.006.50
5-years Tax saver FD (Max 1.50 lakh)6.006.50

#10. Axis Bank FD Interest Rates 2020

Axis bank offers fixed deposits with different time duration ranging from minimum 7 days up to 10 years. Axis bank  also offers better FD interest rates than its counterparts. 

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens (%ge)
7 days to 14 days3.503.50
15 days to 29 days4.254.25
30 days to 45 days4.904.90
46 days to 179 days5.405.40
180 days to 270 days5.806.05
271 days to 355 days6.056.30
356 days to less than 1 year6.406.65
1 year to less than 1.5 years6.407.05
1.5 years to less than 2.5 years6.507.15
2.5 years onwards6.507.00

#11. PNB FD Interest Rates 2020

Punjab National Bank has become the second largest public sector bank in India. PNB has a wider network with deep outreach in sub-urban and rural areas. 

PNB offers amazing returns on FD interest rates for individuals as well as senior citizens.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 14 days4.254.75
15 days to 29 days4.254.75
30 days to 45 days4.254.75
46 days to 179 days5.005.25
180 days to 270 days5.506.00
271 days to 355 days5.606.10
333 days5.756.25
1 year onwards5.806.30

#12. Indian Bank FD Interest Rates 2020

Indian bank has become the 7th largest public sector bank in India after a merger with Allahabad bank. Indian bank offers the best FD interest rates for lower time period like 7 days, 15 days or 1 month. 

But you also get one of the best FD interest rates if you increase the investment period.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 29 days4.954.95
30 days to 45 days5.205.20
46 days to 60 days5.455.45
61 days to 90 days5.955.95
91 days to 179 days6.206.20
180 days to less than 1 year6.256.25
1 year to less than 2 years6.456.45
2 years to less than 3 years6.356.35
3 years onwards6.256.25
333 days6.306.30
Tax saver6.456.45

#13. Canara Bank FD Interest Rates 2020

Canar bank offers one of the lowest rates on the fixed deposits.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 45 days4.254.25
46 days to 180 days5.005.00
180 days to less than 1 year5.506.00
1 year to less than 3 years5.856.35
3 years onwards5.806.30
Tax saver5.806.30

#14. Bank of Baroda FD Interest Rates 2020

You can check out different interest rates on fixed deposits that Bank of Baroda offers to their customers. 

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 45 days3.504.00
46 days to 180 days4.505.00
180 days to less than 1 year5.005.50
1 year onwards5.706.25
Tax saver5.706.25

#15. Karur Vysya Bank FD Interest Rates 2020

Karur Vysya Bank is more beneficial to senior citizens for better returns on fixed deposits. Here’s the comparison of KVB fixed deposit interest rates.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 29 days3.754.95
30 days to 45 days4.005.20
46 days to 90 days4.255.45
91 days to 179 days4.506.20
180 days to less than 270 days5.00
271 days to less than 1 year5.256.25
1 year to less than 2 years5.506.75
2 years to less than 3 years6.356.80
3 years onwards6.256.80
333 days6.30
Tax saver6.456.50

#16. Indian Overseas Bank FD Interest Rates 2020

IOB offers interest rates in 3 categories –

  • Individual person below 60 years age
  • Senior citizen of 60 years age but below 80 years age
  • Super senior citizen above 80 years age

IOB provides additional benefits to the senior and super senior citizens. 

DurationInterest Rates Regular
(%ge)
Interest Rates for Senior Citizens
(Above 60 years, below 80 years)
(%ge)
Interest Rates for Senior Citizens 
(Above 80 years)
(%ge)
7-45 days4.505.005.25
46-90 days4.605.105.35
91-120 days5.255.756.00
121-179 days5.506.006.25
180-269 days5.756.256.50
270 days to < 2 years(except 444 days)6.106.606.85
444 days6.206.706.95
2 yrs to < 3 yrs6.106.606.85
3 yrs and above6.106.606.85

#17. Bandhan Bank FD Interest Rates 2020

Bandhan bank is among those a few banks that offer above 6% FD interest to an individual and above  7% FD interest to a senior citizen.

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7 days to 14 days3.504.25
15 days to  to less than 3 months4.004.75
3 months to less than 6 months4.505.25
6 months to less than 1 year5.406.15
1 year to less than 18 months6.757.50
18 months to less than 2 years6.757.50
2 years to less than 3 years6.757.50
3 years to less than 5 years6.607.35
5 years onwards6.507.25

#18. IDBI Bank FD Interest Rates 2020

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7-14 days3.103.60
15-30 days4.004.50
31-45 days4.254.75
46- 60 days5.005.50
61-90 days5.005.50
91-6 months5.005.50
6 months 1 day to 270 days5.255.75
271 days upto< 1 year5.506.00
1 year5.856.35
> 1 year – 2 years5.756.25
>2 years to < 3 years5.806.30
3 years to < 5years5.756.25
5 years5.906.40
> 5 years – 7 years5.806.30
>7 years – 10 years5.806.30
>10 years – 20 years*5.506.00
Tax Saver 5 years5.906.40

#19. Federal Bank FD Interest Rates 2020

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens
(%ge)
7 days to 14 days3.504.00
15 days to 29 days4.505.00
30 days to 60 days5.005.50
61 days to 90 days5.506.00
91 days to 180 days5.756.25
181 days to less than 1 year6.006.50
1 year6.306.80
Above 1 year to less than 20 months6.406.90
20 months6.507.00
Above 20 months6.406.90

#20. Andhra Bank FD Interest Rates 2020

DurationInterest Rate Regular
(%ge)
Interest Rates for Senior Citizens 
(%ge)
7-14 Days4.00 %4.00 %
15-30 Days4.00 %4.00 %
31-45 Days4.25 %4.25 %
46-90 Days4.50 %4.50 %
91-120 Days5.00 %5.00 %
121-180 Days5.25 %5.25 %
181 Days to < 1 Year5.50 %5.50 %
1 Year5.75 %5.75 %
>1Year to <444 Days5.75 %5.75 %
444 Days5.85 %5.85 %
>444 Days to <555 Days5.75 %5.75 %
555 Days5.90 %5.90 %
>555 Days to 3 Years5.75 %5.75 %
>3 Years to 5 Years5.80 %5.80 %
>5 Years to 10 Years5.80 %5.80 %

Post Office FD Interest Rates 2020

Indian post office offers better FD interest rates than some public sector banks.  You can start a fixed deposit account in your nearest post office with a minimum amount of Rs. 1,000.

Here’s the slab of fixed deposit interest rates as per the duration of investment. 

DurationInterest Rates
1yr.A/c5.5%
2yr.A/c5.5%
3yr.A/c5.5​%
5yr.A/c6.7​ %

Post office pays a fixed 7.4% interest rate to senior citizens with a lock-in period of 5 years. Senior citizen also get tax exempt up to Rs 50,000 under Section 80TTB on the interest earned.

FD Interest Rates Calculator

Here’s the formula for calculating FD interest rate.

M=P(1+r/n)^n*t

Where

M – maturity amount 

P – principal amount

r – rate of interest

t – number of years

n – compounded interest frequency

Let’s understand this with an example. 

You have Rs. 1,00,000 in a Fixed Deposit for a time period of 1 year at an interest rate of 8%, which is compounded annually. 

Here’s the calculation of 1 year FD  where n =4 (interest compounded quarterly)

M = 100000*{[1+(0.08/4)]^(4*1)}

M = 100000* {(1.02)^4}

M = 100000* 1.08243

M = 108243

Hence, interest earned in 1 year would be – Rs. 8,243

Final Words

If you want to earn higher returns then you should invest in other high returns investment options like mutual funds or stock investment. As the fixed deposit interest rate is declining. 

Invest only in FD if you are saving for short term and want to save your capital from short term market fluctuations. 

If you have any questions regarding fixed deposits, do let me know in the comments.

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