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||3.00% to 5.30%||3.00% to 5.80%|
|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 10 August 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%|
|Bank of Baroda||5.70%||6.20%|
|Central Bank of India||5.65%||-|
|Punjab National Bank||5.75%||6.25%|
|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)
- What is the minimum period for a fixed deposit?
A fixed deposit account can be opened for a minimum period of 7 days.
- 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.
- Can I get monthly interest on a fixed deposit?
Yes, you can get a monthly interest payout on your fixed deposit.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Do banks charge a penalty for premature withdrawal of FD?
Yes, banks charge a penalty for premature withdrawal of a FD.
- 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.
- 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.
- 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.