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Fixed Deposit (FD) Interest Rates 2020

Updated on October 17, 2020 , 74301 views

Fixed Deposits (FD) have always been one of the popular modes of investments in India. FD gives better returns on the invested money as the interest rate offered are comparatively higher to a Recurring deposit or a Savings Account. The FD interest rates vary from 4% p.a. - 7% p.a, depending on the tenure of the investment. Senior citizens earn a higher rate of interest compared to the regular citizens.

FD-Rates

In this scheme, it is seen that the higher the tenure, higher the interest rate and vice versa. Another advantage of this scheme is that investors can determine their potential Earnings by using FD interest formula even before Investing!

Fixed Deposit (FD)

Fixed deposits are a great investment tool for the risk-averse investors. FD scheme not only encourages a habit of healthy saving but also provides high liquidity, so investors can exit at will. It is a deposit scheme where you can deposit a principal amount for a fixed tenure. Upon the maturity, you will get the principal amount along with the interest earned on it over the tenure.

While investing in a Fixed Deposit scheme, it is advisable that you compare FD interest rates of various banks and choose the one that gives you the desired returns.

Type of FD Schemes and How FD Interest Rates Differ

1. Standard Fixed Deposit

These are regular Fixed Deposit schemes which have a wide range of fixed tenures ranging from 7 days to 10 years. The FD interest rates are determined at the time of deposit. The rate varies by issuer depending upon the deposited amount, the tenure, and whether it is a regular citizen or senior citizen scheme.

2. Floating Rate Fixed Deposit

Under this scheme, the FD interest rates are not fixed. It fluctuates during the tenure depending on the changing reference rate. This allows investors to take the benefits of a change in the FD rates (assuming it increases).

3. Tax Saving Fixed Deposit

A Tax saving Fixed Deposit allows investors to enjoy certain tax benefits but is accompanied by certain limitations. This FD scheme has a minimum deposit period of five years and a maximum of 10 years. The scheme doesn’t allow premature withdrawal or even a partial withdrawal till five years. But, under this scheme, an investor can claim deductions up to INR 1,50,000 on the money invested under Section 80C of the income tax Act, 1961. However, the interest earned on such FDs is fully taxable. tax saving FD interest rates vary from 6.00% to 8.00% p.a.

FD Interest Rates 2020

Here is a list of FD interest rates offered by various banks. The interest rates for FDs have been grouped according to the standard FD scheme and senior citizen FD scheme. (Rates are as of 1st Feb 2018).

Bank Name FD Interest Rates (P.A.) Senior Citizen FD Rates (P.A.)
Axis Bank 3.50% - 6.85% 3.50% - 7.35%
State Bank of India 5.25% - 6.25% 5.75% - 6.75%
HDFC Bank 3.50% - 6.75% 4.00% - 7.25%
ICICI Bank 4.00% - 6.75% 4.50% - 7.25%
Kotak Bank 3.50% - 6.85% 4.00% - 7.35%
Bank of Baroda 4.25% - 6.55% 4.75% - 7.05%
IDFC Bank 4.00% - 7.50% 4.50% - 8.00%
Indian Bank 4.50% - 6.50% 5.00% - 7.00%
Punjab National Bank 5.25% - 6.60% 5.75% - 7.10%
Allahabad Bank 4.00% - 6.50% -
Bank of India 5.25% - 6.60% 5.25% - 7.10%
Central Bank of India 4.75% - 6.60% 5.25% - 7.00%
UCO Bank 4.50% - 6.50% -
Citibank 3.00% - 5.25% 3.50% - 5.75%
Federal Bank 3.50% - 6.75% 4.00% - 7.25%
Karnataka Bank 3.50% - 7.25% 4.00% - 7.75%
DBS Bank 4.00% - 7.20% 4.00% - 7.20%
Bandhan Bank 3.50% - 7.00% 4.00% - 7.50%
Dhan Laxmi Bank 4.00% - 6.60% 4.00% - 7.10%
Jammu & Kashmir Bank 5.00% - 6.75% 5.50% - 7.25%
Yes Bank 5.00% - 6.75% 5.50% - 7.25%
Standard Chartered Bank 4.25% - 6.85% 5.00% - 7.35%
Vijaya Bank 4.00% - 6.60% 4.50% - 7.10%
Bank of Maharashtra 4.25% - 6.50% 4.25% - 7.00%
Canara Bank 4.20% - 6.50% 4.70% - 7.00%
HSBC Bank 3.00% - 6.25% 3.50% - 6.75%
DHFL 7.70% - 8.00% 7.95% - 8.25%

*Disclaimer- The FD Interest Rates are subject to frequent change. Before starting a Fixed Deposit scheme, do inquire with the concerned banks or visit their websites.

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Various Banks FD Interest Rates

Here's a detailed FD interest rates of various banks as per investment tenure and investment amount.

Union Bank of India FD Interest Rates

Here's the list of Union Bank FD Rates, applicable for deposits of <INR 2 Crore.

w.e.f 17/12/2019

Tenure Interest Rates (p.a.)
7 – 14 Days 5.00
15 – 30 Days 5.00
31 – 45 Days 5.00
46 – 90 Days 5.50
91 - 120 Days 6.00
121 to 180 Days 6.10
181 Days to <1 Year 6.15
1 Year 6.30
>1 Year to 443 Days 6.30
444 Days 6.40
445 Days to 554 Days 6.30
555 Days 6.45
556 Days to 3 Years 6.30
> 3 Years to 5 Years 6.30
> 5 Years to 10 Years 6.30

SBI FD Interest Rates

State Bank of India (SBI) Fixed Deposit Rates.

w.e.f January 10, 2020-

Tenure Interest Rates
7 days to 45 days 4.50%
46 days to 179 days 5.50%
180 days to 210 days 5.80%
211 days to less than 12 months 5.80%
12 months to less than 24 months 6.40%
24 months to less than 36 months 6.25%
36 months to less than 60 months 6.25%
60 months to 120 months 6.25%

IDBI Fixed Deposit Interest Rates

Here's a list of IDBI FD Interest rates for deposits of below INR 2 crore.

w.e.f. February 17, 2020

Tenure Interest Rates for Regular Deposit (p.a.)
0-6 Days NA
07-14 days 3.50%
15-30 days 4.50%
31-45 days 4.75%
46- 60 days 5.50%
61-90 days 5.50%
91-6 months 5.50%
6 months 1 day to 270 days 5.75%
271 days upto< 1 year 5.90%
1 year 6.30%
> 1 year - 2 years 6.25%
>2 years to < 3 years 6.25%
3 years to < 1111 days 6.25%
1111 days (Utsav Celebrations deposit) 6.40%
>1111 days to < 5years 6.25%
5 years 6.25%
> 5 years - 7 years 6.25%
>7 years - 10 years 6.25%

HDFC FD Rates

Here's the list of HDFC FD interest rates and are applicable for deposits of below INR 1 crore.

Tenure | FD Interest Rates(p.a.) | | :--------: | :--------: | |7 days to 14 days |3.50%| |15 days to 29 days |4.00%| |30 days to 45 days |4.90%| |46 days to 90 days| 5.40%| |91 days to 6 months |5.40%| |6 months 1 day to 9 months| 5.80%| |9 months 1 day to 1 year |6.05%| |1 year |6.30%| |1 year 1 day to 2 years |6.30%| |2 years 1 day to 3 years| 6.40%| |3 years 1 day to 5 years| 6.30%| |5 years 1 day to 10 years |6.30%|

Bank of India FD Rates

The above rates are applicable for deposits of below INR 1 crore.

As on June'2018-

Tenure Interest Rates for Regular Deposit (p.a.) Interest Rates for Senior Citizen(p.a.)
7 days to 14 days 5.25% 0.00
15 days to 30 days 5.25% 5.75%
31 days to 45 days 5.25% 5.75%
46 days to 90 days 5.25% 5.75%
91 days to 120 days 5.75% 6.25%
121 days to 179 days 6.00% 6.50%
180 days to 269 days 6.00% 6.50%
270 days to Less than 1 Year 6.25% 6.75%
1 Year & above to less than 2 years 6.25% 6.75%
2 years & above to less than 3 years 6.60% 7.10%
3 Years & above to less than 5 years 6.65% 7.15%
5 years & above and less than 8 years 6.40% 6.90%
8 years & above to 10 years 6.35% 6.85%

Bank of Baroda FD Interest Rates

The above rates are applicable for deposits of <INR 1 crore.

w.e.f. 10.02.2020

Tenure Below INR 2 Cr. (w.e.f. 10.02.2020)
7 days to 14 days 4.50
15 days to 45 days 4.50
46 days to 90 days 5.00
91 days to 180 days 5.00
181 days to 270 days 5.50
271 days & above and less than 1 year 5.50
1 year 6.00
Above 1 year to 400 days 6.00
Above 400 days and upto 2 Years 6.00
Above 2 Years and upto 3 Years 6.00
Above 3 Years and upto 5 Years 6.25
Above 5 Years and upto 10 Years 6.00
444 days (Only for Baroda Samriddhi Deposit Scheme) Discontinued

Axis Bank FD Interest Rates

The below rates are applicable for deposits of below INR 2 crore.

w.e.f 01/02/2020-

Tenure Interest Rates
7 days to 14 days 3.50
15 days to 29 days 4.25
30 days to 45 days 4.90
46 days to 60 days 5.40
61 days < 3 months 5.40
3 months < 4 months 5.40
4 months < 5 months 5.40
5 months < 6 months 5.40
6 months < 7 months 5.80
7 months < 8 months 5.80
8 months < 9 months 5.80
9 months < 10 months 6.05
10 months < 11 months 6.05
11 months < 11 months 25 days 6.05
11 months 25 days < 1 year 6.40
1 year < 1 year 5 days 6.55
1 year 5 days < 1 year 11 days 6.40
1 year 11 days < 1 year 25 days 6.40
1 year 25 days < 13 months 6.40
13 months < 14 months 6.40
14 months < 15 months 6.40
15 months < 16 months 6.40
16 months < 17 months 6.40
17 months < 18 months 6.40
18 Months < 2 years 6.50
2 years < 30 months 6.65
30 months < 3 years 6.50
3 years < 5 years 6.50
5 years to 10 years 6.50
## Formula to Calculate Fixed Deposit Interest

Even though FD interest rates vary bank to bank, investors can still determine their potential earnings by using FD interest formula.

FD Interest Rate Formula- A=P(1+r/n)^nt

Where,

A= Maturity Value

P= Principal Amount

r= Rate of Interest

t= Number of Years

n= Compound Interest Frequency

*Using FD Interest Formula investors can determine their potential earnings.

Illustration- If you invest INR 5000 monthly with an annual interest rate of 6% p.a. which is compounding annually, then after 5 years your total invested amount of INR 300,000 will grow to INR 3,49,121. That means, you are making a net profit of INR 49,121.

Using the above formula, investors can estimate the interest earned and the maturity value of the principal amount.

FAQs

1. Are the interest earned from FDs taxable?

A- Yes, interests earned from FDs are taxable. Banks deduct a TDS of 10% on FDs if the interest income is above Rs. 10,000 and 20% if the PAN has not been provided. You are expected to pay an additional 10% tax if you fall under the higher income bracket when you file your Income Tax Returns.

2. How can you save on taxes on your FDs?

A- If you opt for a Tax Saving deposit scheme, you can save in the Taxes on your FDs. You will have to invest for a minimum period of five years and a maximum of ten years. The investment amount cannot exceed 1.5 lakh rupees.

3. Which should I opt for a floating rate or standard rate of FD?

A- In a floating rate, interest rate moves in tandem with a reference rate, which is periodically reset. This gives you an advantage of the interest rate changes without closing and re-booking the FD. At certain times you will make more than the standard rate.

4. When should I opt for a standard rate of FD?

A- If you do not want the interest rate to change, you should opt for your FD's standard rate. It is best if you do not want to take any risk with your investment.

5. Why do FDs have higher interest rates than savings deposits?

A- Fixed deposits have a higher tenure and cannot be withdrawn before maturity. If you withdraw before maturity, then you will have to pay the penalty. Hence, the banks pay higher interest rates on the FDs compared to savings deposits.

6. Is the interest formula for calculating FDs the same for all banks?

A- Yes, banks use the same formula to calculate interest for FDs. So whether you are opening an FD in a nationalized bank or a privatized bank, the interest calculation formula will be the same.

7. Can I use my FD to save on my taxes?

A- As per the 80C of Income Tax Act, you can save taxes up to 1.5 lakh rupees on your FDs. Beyond this amount, your FDs become taxable.

8. What benefit will the bank give me if open a term deposit account?

A- Banks provide a higher rate of interest compared to a savings account. You will get the amount as interest payable on the money invested as a fixed deposit.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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