Banks offering more than 9% interest on FDs in 2020

There are many banks in India that offer more than 9% p.a. on Fixed Deposits (FDs). Term deposits are an ideal investment option, especially for those who are looking for benefits like high liquidity, premature withdrawal facilities, nomination facility, loan/overdraft, etc. It is not difficult to find banks that pay a good rate of interest and there are a few that pay a high rate such as Mahaveer Bank, ESAF Small Finance Bank and Suryoday Small Finance Bank.

Given below is a revised list of banks that pay over 9% p.a. in 2020:

*Interest rates are subject to change and can be revised from time to time at the discretion of the bank.

Mahaveer Bank

• Mahaveer Bank is a co-operative urban bank. It offers a variety of deposits scheme to individuals.
• The interest rates offered by the bank on their fixed deposit schemes are attractive.
• At present, the bank pays a lucrative rate of 9% p.a. to senior citizens for deposits held for more than 2 years up to 5 years.

Read more about: Best FD Interest Rates for 1 Year 2020

ESAF Small Finance Bank

• ESAF Small Finance Bank offers a wide range of term deposit schemes and attractive interest rates
• Currently the rate of interest offered to the general public is 8.75% p.a. for all term deposits held for a tenure ranging from 365 days to 727 days
• For senior citizens the rate of interest paid is 9.25% p.a.
• The bank offers reinvestment option, nomination, joint account and auto renewal facility
• Another option available is the multiple amount deposit scheme
• Interest payout frequencies include quarterly and monthly
• The minimum deposit amount is Rs.1,000 and the minimum period for holding a term deposit is 7 days

Read more about: Best FD Interest Rates for 3 Year 2020

Suryoday Small Finance Bank

• Suryoday Small Finance Bank is another bank in the small finance sector that offers attractive interest rates on all term deposit schemes
• The bank pays an interest rate of more than 9.25% p.a. for senior citizen term deposit schemes for an investment period that ranges between 24 months and 36 months
• This rates are applicable to all deposits of up to Rs.2 crore
• TDS is applicable on all deposits and deductions will be made if the interest earned is more than Rs.10,000 in a financial year for regular individuals and more than Rs.50,000 for those above 60 years
• The bank offers an interest rate of 9% p.a. to the general public and 9.50% p.a. to the senior citizens for a special tenure of 950 days
• Senior citizens get 9% p.a. for investment period that ranges between 1 and 2 years.