Fixed Deposit Rates 2020

Fixed Deposit Interest Rates 2020 - Get latest FD Rates for General & Senior Citizens from Top Banks like SBI, HDFC, ICICI, Axis, Canara Bank & Indian Bank.
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When it comes to investments, fixed deposits are a preferred option as it offers guaranteed returns. Here, we have compiled the FD interest rates offered by various banks that operate in the country.

Know All About FD Interest Rates

Fixed Deposit Interest Rates by Top 10 Banks in India

Listed in the table below are the interest rates (p.a) offered by top banks for the duration of 7 days to 10 years.

Name of Bank For General Citizens (p.a) For Senior Citizens (p.a)
State Bank of India 3.30% to 5.70% 3.80% to 6.50%
ICICI Bank 2.75% to 5.75% 3.25% to 6.30%
HDFC Bank 3.00% to 6.00% 3.50% to 6.50%
Punjab National Bank 3.50% to 5.75% 4.00% to 6.25%
Canara Bank 4.00% to 5.70% 4.00% to 6.20%
Axis Bank 3.50% to 6.10% 3.50% to 6.60%
Kotak Mahindra Bank 3.00% to 5.00% 3.50% to 5.50%
Bank of Baroda 3.50% to 5.70% 4.00% to 6.20%
IDFC Bank 4.00% to 7.25% 4.50% to 7.75%
Bank of India 4.00% to 5.80% 4.50% to 6.30%

Note:The interest rates mentioned in the table are for deposits less than Rs.2 crore as of 17 June 2020.

Highlights of Top Bank FD Rates

  • The tenure of the fixed deposits is in the range between 7 days and 10 years.
  • The highest interest is offered by IDFC Bank among all the banks. It offers interest of 7.25% to general citizens and 7.75% to senior citizens for the tenure of 2 years.

FD Rates Offered by Other Banks Operating in India

Name of the Bank General Citizens (p.a.) Senior Citizens (p.a.)
Yes Bank 5.00% to 6.75% 5.50% to 7.25%
IndusInd Bank 4.00% to 6.65% 4.50% to 7.15%
UCO Bank 4.00% to 5.80% 4.25% to 6.30%
United Bank of India 4.00% to 6.00% 4.50% to 6.50%
Union Bank of India 4.00% to 5.80% 4.50% to 6.30%
Allahabad Bank (now Indian Bank) 3.75% to 5.65% 4.25% to 6.15%
Central Bank of India 3.70% to 5.65% -
Indian Bank 3.75% to 5.65% 4.25% to 6.15%
Indian Overseas Bank 4.50% to 6.10% 5.00% to 6.60%
Bandhan Bank 3.50% to 6.50% 4.25% to 7.25%
RBL Bank 5.00% to 6.65% 5.50% to 7.15%
DBS Bank 4.00% to 5.70% 4.00% to 5.70%
Andhra Bank 4.00% to 5.80% -
HSBC Bank 3.00% to 4.00% 3.50% to 4.50%
Syndicate Bank (now Canara Bank) 4.00% to 5.70% 4.00% to 6.20%
Duetsche Bank 4.55% to 6.75% 4.55% to 6.75%
Corporation Bank 4.00% to 5.80% 4.50% to 6.30%
SBM Bank 3.50% to 6.50% 4.00% to 7.00%

Note:The interest rates mentioned in the table are for deposits less than Rs.2 crore as of 06 July 2020.

Banks which offer high interest on Tax Saver FDs

Tax Saver FDs are those under which you can get a tax exemption of up to Rs.1.5 lakh under Section80C of the Income Tax Act, 1961. The tenure of a tax saving FD is 5 years. Listed in the table below are the banks which offer good interest rates to both general and senior citizens FD.

Name of the Bank Interest rate offered to General Citizens (p.a.) Interest rate offered to Senior Citizens (p.a.)
State Bank of India 5.70% 6.50%
ICICI Bank 5.50% 6.00%
HDFC Bank 6.00% 6.50%
Axis Bank 6.10% 6.60%
Bank of Baroda 5.70% 6.20%
IDFC Bank 7.25% 7.75%
Central Bank of India 5.65% -
Punjab National Bank 5.75% 6.25%
IDBI Bank 5.90% 6.40%
Corporation Bank 5.80% 6.30%
Syndicate Bank (now Canara Bank) 5.70% 6.20%

Note:The interest rates mentioned in the table are for deposits less than Rs.2 crore as of 17 June 2020.

Highest Interest rates offered on FDs by Small Finance Banks

Small Finance banks operating in the country also offer individuals the option of opening a Fixed Deposit account with them. Listed in the table below are the small finance banks that offer the highest interest rates on FDs:

Name of the Bank For General Citizens (p.a.) For Senior Citizens (p.a.)
Jana Small Finance Bank 5.00% to 7.00% 5.50% to 7.50%
Utkarsh Small Finance Bank 4.75% to 7.75% 5.25% to 8.25%
Equitas Small Finance Bank 4.00% to 6.75% 4.60% to 7.35%

Note:The Small Finance Banks FD interest rates mentioned here are as of 24 April 2020.

Interest rates offered by NBFCs (Non-Banking Financial Companies)

Non-Banking Financial Companies (NBFC) also offer you the option of opening an FD account with them. Given that fixed deposits are one of the most preferred investment options available in the market, many financial companies offered it to their customers. Mentioned in the table below are those companies which offer more than 7% p.a. for investing in fixed deposits.

Name of the Bank Tenure Interest rate offered to General Citizens (p.a.) Interest rate offered to Senior Citizens (p.a.)
HUDCO 12 months to 60 months 7.30% 7.55%
LIC Housing Finance 12 months to 60 months 7.10% 7.35%
PNB Housing Finance 12 months to 120 months 7.45% 7.70%
ICICI Home Finance 12 months to 120 months 7.35% 7.60%
Mahindra Finance 15 months to 40 months 7.45% 7.55%
Bajaj Finance 12 months to 60 months 7.35% 7.60%
Shriram City Union Finance 12 months to 60 months 8.41% 8.91%
Hawkins Cookers 12 months to 36 months 10.50% 10.75%

Note:The interest rates mentioned here are as of 15 June 2020.

Fixed Deposit Calculator

The interest you can earn on your deposited amount depends on multiple factors, including the amount invested, tenure, rate of interest, interest computation frequency, and taxation. You can calculate the returns on your investment by using an FD calculator. The entire process of calculating the amount is easy and hassle-free. All you need to do is enter the deposit term, choose the type of FD (reinvestment, quarterly, or monthly payment), the investment amount, the date of account opening, and the interest rate.

Fixed Deposit Interest and Income Tax

  • The income you earn on your FD is termed as Income from Other Source and it is fully taxable.
  • Banks will not deduct TDS, if your interest income from fixed deposits is less than Rs.40,000 in a year.
  • You need to submit Form 15G and Form 15H with the bank at the beginning of the financial year. Banks will not deduct TDS following the form submission.

Frequently Asked Questions (FAQs)

  1. What is the minimum period for a fixed deposit?

    A fixed deposit account can be opened for a minimum period of 7 days.

  2. What is the minimum amount that can be deposited in an FD account?

    The minimum amount varies from bank to bank. It can be as low as Rs.50.

  3. Can I get monthly interest on a fixed deposit?

    Yes, you can get a monthly interest payout on your fixed deposit.

  4. Is FD a good investment?

    Investing in fixed deposits is one of the safest investment options available. The interest offered on FDs by banks makes it a good option.

  5. Which bank FD rate is high in 2020?

    For a tenure of between 7 days to 10 years and a deposit amount of less than Rs.2 crore, some of the banks that offer the highest FD rates are IDFC Bank, Bank of Baroda, Axis Bank, Canara Bank, Punjab National Bank, HDFC Bank, and SBI.

  6. Can I prematurely withdraw from a Tax Saver Term Deposit?

    No, you can prematurely withdraw a tax saver term deposit as it has a lock-in period of 5 years.

  7. What is the maximum duration for which a FD account can be opened?

    You can open a fixed deposit account for a maximum period of 10 years.

  8. Do all NBFCs offer the option of opening a FD account with them for a period of 10 years?

    No, not all NBFCs offer you open of opening a FD for a period of 10 years.

  9. What is maximum exemption that I can get under tax saver FDs?

    Under tax saver FDs, the maximum exemption you can get is Rs.1.5 lakh.

  10. Under which section of the Income Tax Act is the tax benefit offered on tax saver FDs?

    The tax benefit is offered under Section 80C of the Income Tax Act, 1961.

  11. Do banks charge a penalty for premature withdrawal of FD?

    Yes, banks charge a penalty for premature withdrawal of a FD.

  12. Which bank is best for fixed deposits?

    It is best to choose leading and trusted banks for fixed deposits in India. The top 10 banks are State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Canara Bank, Axis Bank, Kotak Mahindra Bank, Bank of Baroda, IDFC Bank, and Bank of India.

  13. Which is better for FD, bank or post office deposit?

    All fixed deposits, whether in a bank or post office, are not affected by market fluctuations and offer fixed and assured return of interest over the tenure chosen.

  14. How can I get the maximum returns from my fixed deposit?

    To get the maximum returns on your fixed deposit, compare the fixed deposit rates among different tenures in the same bank and among different banks. Make sure that it is not too short nor too long.

Read News About Fixed Deposit Rates

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  • ICICI Bank cut down fixed deposit interest rate

    ICICI Bank has cut down its interest rates for their fixed deposit accounts and will be effective from 17 June 2020. This move by the bank is like many others who have cut down their deposit rates due to surplus liquidity.

    On 4 June 2020, ICICI Bank had cut down their interest rates on their savings account for deposits less than Rs.50 lakh to 3% compared to 3.25% previously. For the deposits of Rs.50 lakh and more, the interest given by the bank was changed from 3.75% to 3.50%.

    17 June 2020

  • ICICI Bank reduces FD rates by up to 0.50%

    The private sector bank, ICICI Bank has now cut its rates on term deposit by up to 50 basis points (bps) with effect from 11 May. All the deposits up to one year will earn you an interest of 5.25% and those over a year will fetch an interest of 5.7%-5.75%. The cut in rate by ICICI Bank takes off the heel of a few reports that the banks are flushed with deposits and reduced scope for more lending during a lock-down. The State Bank of India (SBI), had made an announcement of a cut by 20 basis points (bps) in its interest on FDs.

    After the latest revision, ICICI Bank will give 5.75% interest on its FDs that mature between 2 years and 10 years. All senior citizens will be provided with an additional 50 basis points (bps) interest - 6.25%- for the tenure. ICICI Bank used to earlier give 25-50 basis points higher interest on the deposits. This is good news for all prospective borrowers as they can now expect a lower interest in loans. A lower interest rate on FDs will aid the bank in reducing its cost of funds, and the MCLR, the benchmark lending rate, to which their loans are now linked

    13 May 2020

  • Axis Bank revises its fixed deposit rates effective 5 November 2019

    Private sector lender Axis Bank has revised the interest rates on its Fixed Deposits (FDs) effective 5 November 2019 and post the revision, the rates offered to the general public on FDs of up to Rs.2 crore range between 3.50% and 6.85%. The details of the rates on different tenors can be found on the official website of the lender, which offers 29 maturity options to its customers for FDs up to Rs.2 crore. The maturity period offered on the FDs range between 7 days and 10 years. Senior citizens can enjoy higher interest rates on FDs across tenors. For FDs with maturity periods ranging from 13 months to 18 months, the revised rates for the general public and senior citizens are 6.45% and 7.1% respectively. For FDs with maturity period ranging from 2 years to 3 years, the revised rates for the general public and senior citizens are 6.85% and 7.35% respectively. FD accounts with a lock-in period of 5 to 10 years can enjoy income tax benefits under Section 80C of the Income Tax Act, 1961.

    13 November 2019

  • Punjab National Bank revises its fixed deposit rates by up to 20 basis points

    Public sector lender, Punjab National Bank (PNB) has revised its fixed deposit (FD) interest rates to be effective from 1 November 2019. As per the official website of the lender, there has been a reduction in the interest rates by 20 basis points (20 bps) or 0.20 percentage points in select tenors. Post the revision in the rates, PNB will be offering interest rates in the range of 4.5 to 6.4% on FDs up to Rs.2 crore to the general public over tenors ranging between 7 days and 10 years. For FD with maturity periods ranging from 7 to 45 days, the revised rates for the general public and senior citizens are 4.5% and 5% respectively while for tenors of 46 to 179 days the rates are 5.5% and 6% respectively. The revised FD rates for tenors 180 to less than 1 year, 333 days, 1 year to 555 days, above 1 year and up to 2 years, above 2 years and up to 5 years, and above 5 years and up to 10 years for the general public are 6%, 6.1%, 6.4%, 6.3%, 6.25%, and 6% respectively.

    12 November 2019

  • SBI FD rates slashed by 15 basis points across select tenors

    A reduction in the fixed deposit (FD) rates has been made by the country’s largest bank by assets, State Bank of India (SBI) across select tenors. In the retail segment, the FD rates have been reduced by 0.15 percentage points or 15 basis points across a select tenor for FDs below Rs.2 crore. For FDs of Rs.2 crore and above, a reduction of 30 to 75 basis points has been made in the interest rates. The revised interest rates will be effective from 10 November 2019. SBI currently offers 6.25% interest rate to the general public while senior citizens can enjoy 6.75% interest on FDs below Rs.2 crore for 1-year tenor to less than 2-years tenor. For FDs maturing between 46 days and 179 days, the FD rates for the general public and senior citizens are 6% respectively. FDs maturing in a period of one year to 10 years have the revised FD rates for the general public and senior citizens at 6.25% and 6.75% respectively. The last revision in FD rates was made by SBI on 10 October 2019.

    11 November 2019

  • ICICI Bank’s new FD scheme offers critical illness cover

    ICICI Bank launched their latest FD scheme FD Health. The bank is offering the dual benefit of allowing a customer invest in the scheme and a critical illness scheme. You can enjoy an insurance cover provided to you free of cost for the first year with the option or renewing it for the second year.

    The bank will allow you to withdraw a said amount partially as well as prematurely.

    4 November 2019

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