Highest Interest Rate on Bank Fixed Deposits (FD) – January 2020

The post lists down the rate of interest on Bank fixed deposits as of January 8, 2020.

You might want to bookmark this page as the FD interest rates would be updated every month. Would help you in better decision making.

Fixed Deposit Highlights

  1. Most big banks like SBI, HDFC, Axis, have lowered their FD rates.
  2. Most banks offer FDs for tenure of 7 Days to 10 Years.
  3. The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
  4. For very short Term Deposits the interest rate is similar to that of Savings Account and so you should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
  5. Most banks compound interest quarterly
  6. Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is generally 0.5% to 1% more than that offered to FD.
  7. TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 40,000 in financial year per bank (changed from Rs 10,000 limit in Budget 2019)
  8. In case of Senior citizens TDS would be deducted at the rate of 10%, if the interest income exceeds Rs 50,000
  9. There might be penalty for pre-mature withdrawal of Fixed Deposits

Fixed Deposit Interest Rates

The highest interest rate on fixed deposit is offered by Lakshmi Vilas Bank (450 days) at 7.80%.

For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 5 slabs:

  • FD for Less than 1 Year
  • FD for 1 to 2 years
  • FD for 2 to 5 Years
  • FD for 5 to 10 years
  • FD for More than 10 years

We show the highest interest rates on fixed deposits for the above duration buckets. We have also compared the best interest rates on offer by that being offered by State Bank of India (SBI), ICICI Bank and Post Offices.

Interest Rate for FD of Less than 1 Year

The highest interest rate is offered by Lakshmi Vilas Bank (181-364 days) at 7.35%.

BankDescriptionInterest Rate
Lakshmi Vilas Bank181 – 364 Days7.35%
Yes Bank9 months to < 1 Year7.15%
IDFC First Bank181 days – less than 1 year7.00%
Lakshmi Vilas Bank151-180 Days7.00%
DCB Bank6 months to less than 12 months6.85%
Yes Bank6 months to < 9 months6.85%
Tamilnad Mercantile Bank271 days – < 12 months6.80%
IDFC First Bank91 – 180 days6.75%
Lakshmi Vilas Bank121-150 Days6.75%
Tamilnad Mercantile Bank180 days – 270 days6.75%
Bandhan Bank6 months to less than 1 year6.70%
Ratnakar Bank181 days to 364 days6.65%
Allahabad BankAllBank FDD (155 Days)6.50%
Allahabad Bank180 days to 364 days6.50%
Dhanalakshmi Bank180 days to less than one year6.50%
Digibank by DBS270 to less than 1 year6.50%
Federal Bank271 days to 1 year6.50%
IDFC First Bank46 – 90 days6.50%
Lakshmi Vilas Bank91-120 Days6.50%
Tamilnad Mercantile Bank91 days – 179 days6.50%
Axis Bank11 months 25 days < 1 year6.45%
Standard Charted Bank121 – 364 days6.45%
Punjab and Sind Bank180 – 364 Days6.40%
Ratnakar Bank91 days to 180 days6.40%
DCB Bank91 days to less than 6 months6.35%
South Indian Bank181 days to less than 1 year6.35%
Allahabad Bank91 days to 179 days6.25%
City Union Bank181 days to 364 days6.25%
Digibank by DBS181 to 269 days6.25%
Federal Bank181 days to 270 days6.25%
IDFC First Bank30 – 45 days6.25%
Indian Overseas Bank270 Days to < 1 Year6.25%
Indus Ind Bank270 days or below 1 years6.25%
Karnataka Bank91 days to 364 days6.25%
Standard Charted Bank90 -120 days6.25%
Yes Bank46 days to < 6 months6.25%
DCB Bank46 days to 90 days6.15%
Karur Vysya Bank271 Days to less than 1 year6.15%
Ratnakar Bank46 days to 90 days6.15%
Axis Bank9 months < 11 months 25 days6.05%
State Bank of IndiaGovernment Bank Benchmark4.50% – 5.80%
ICICI BankPrivate Bank Benchmark4.00% – 6.00%

Also Read: 21 Hidden Charges in Saving Bank Account

Interest Rate for Fixed Deposit of 1 – 2 Years

The highest interest rate is offered by Lakshmi Vilas Bank (450 days) at 7.80%.

BankDescriptionInterest Rate
Lakshmi Vilas Bank450 Days7.80%
DCB Bank18 months7.60%
DCB Bank15 months to less than 24 months7.50%
IDFC First Bank500 days7.50%
Lakshmi Vilas Bank365 Days to less than 5 Years7.50%
Ratnakar Bank12 months to less than 24 months7.45%
Yes Bank12 Months 10 Days to 12 Months 20 Days7.40%
Yes Bank18 Months 8 Days to 18 Months 18 Days7.40%
DCB Bank12 months 1 day to less than 15 months7.25%
IDFC First Bank1 year – 10 Years7.25%
Yes Bank1 Year to <= 2 years7.25%
DCB Bank12 months7.00%
Deutsche Bank> 1 Yr – 3 Yrs7.00%
Bandhan Bank1 year to less than 3 years6.95%
Dhanalakshmi Bank1 Year and above upto & inclusive of 2 years6.90%
South Indian Bank2 years6.90%
Tamilnad Mercantile Bank1 Year – < 2 years6.85%
Allahabad Bank1 year to less than 2 years6.75%
Indus Ind BankAbove 1 Years 4 Months to below 61 months6.75%
Federal Bank20 months6.70%
Indus Ind Bank1 Year to 1 Years 4 Months6.65%
Allahabad Bank2 years to less than 3 years6.60%
City Union Bank2 Year6.60%
Federal BankAbove 1 year6.60%
Karnataka Bank1 year to 2 Years6.60%
South Indian Bank1 year to less than 2 years6.60%
Standard Charted Bank18M < 3 Yrs6.60%
Corporation Bank666 days6.55%
Axis Bank18 Months to 10 years6.50%
Catholic Syrian Bank1 Year6.50%
Corporation Bank1 year6.50%
Digibank by DBS1 year to 375 days6.50%
Standard Charted Bank1yr  – 375days6.50%
Syndicate BankAbove 13 months to upto 2 years6.50%
United Bank of India1 Year6.50%
Axis Bank1 year 25 days < 13 months6.45%
Corporation Bank555 days only6.45%
IDBI Bank1 year6.45%
Punjab and Sind Bank1 Year – 10 Years6.45%
Union Bank of India555 Days6.45%
Axis Bank1 year <  18 months6.40%
Canara Bank1 year only6.40%
IDBI Bank> 1 year – 2 years6.40%
Syndicate Bank1 Year exact to 13 months6.40%
Union Bank of India444 Days6.40%
Indian Overseas Bank444 days6.35%
Karur Vysya Bank1 year to less than 2 years6.35%
State Bank of IndiaGovernment Bank Benchmark6.10%
ICICI BankPrivate Bank Benchmark6.20% – 6.30%
Post Office FD (1 year)Post Office6.90%
Post Office FD (2 years)Post Office6.90%

Click for Best Interest Rate on Recurring Deposits

Interest Rate for Fixed Deposit of 2 – 5 Years

The highest interest rate is offered by DCB Bank (36 months) at 7.70%

BankDescriptionInterest Rate
DCB Bank36 months7.70%
Lakshmi Vilas Bank990 Days7.60%
DCB BankMore than 36 months to 60 months7.50%
Deutsche Bank> 4 Yrs – < 5 Yrs7.50%
Lakshmi Vilas Bank365 Days to less than 5 Years7.50%
Ratnakar Bank24 months to less than 36 months7.50%
Yes Bank2 years < 3 years7.50%
DCB Bank24 months to less then 36 months7.40%
Deutsche Bank> 3 Yrs – 4 Yrs7.25%
IDFC First Bank1 year – 10 Years7.25%
Ratnakar Bank36 months to less than 60 months7.25%
Yes Bank3 Years to <= 10 years7.25%
Deutsche Bank> 1 Yr – 3 Yrs7.00%
Bandhan Bank1 year to less than 3 years6.95%
Tamilnad Mercantile Bank2 years < 3 years6.90%
Bandhan Bank3 years to up to 10 years6.75%
Indus Ind BankAbove 1 Years 4 Months to below 61 months6.75%
Tamilnad Mercantile Bank3 years – 10years6.75%
Allahabad Bank2 years to less than 3 years6.60%
Federal BankAbove 1 year6.60%
South Indian BankAbove 2 years to up to and including 10 years6.60%
Standard Charted Bank18M < 3 Yrs6.60%
Allahabad Bank3 years to less than 10 years6.50%
Axis Bank18 Months to 10 years6.50%
Dhanalakshmi BankAbove 2 years upto & inclusive of 10 years6.50%
Digibank by DBS3 years and above6.50%
Karnataka BankAbove 2 Year to 5 years6.50%
Standard Charted Bank3 Yrs <= 5 Yrs6.50%
IDBI Bank1111 days ( Utsav Celebrations Deposit)6.45%
Karur Vysya Bank2 years and above6.45%
Punjab and Sind Bank1 Year – 10 Years6.45%
State Bank of IndiaGovernment Bank Benchmark6.10%
ICICI BankPrivate Bank Benchmark6.40%
Post Office FD (2 years)Post Office6.90%
Post Office FD (3 years)Post Office6.90%
Post Office FD (5 years)Post Office7.70%

Also Read: Where to Park Money for Very Short Term [less than 6 Months]?

Interest Rate for Fixed Deposit of 5 – 10 Years

The highest interest rate is offered by Deutsche Bank (5 years) at 7.75%.

BankDescriptionInterest Rate
Deutsche Bank5 Yrs7.75%
Ratnakar Bank60 months to less than 120 months7.40%
DCB BankMore than 60 months to 120 months7.25%
IDFC First Bank1 year – 10 Years7.25%
Lakshmi Vilas Bank5 Years to 10 Years7.25%
Yes Bank3 Years to <= 10 years7.25%
Bandhan Bank3 years to up to 10 years6.75%
Tamilnad Mercantile Bank3 years – 10years6.75%
Indus Ind Bank61 month and above6.65%
Federal BankAbove 1 year6.60%
South Indian BankAbove 2 years to up to and including 10 years6.60%
Allahabad Bank3 years to less than 10 years6.50%
Axis Bank18 Months to 10 years6.50%
Dhanalakshmi BankAbove 2 years upto & inclusive of 10 years6.50%
Digibank by DBS3 years and above6.50%
Standard Charted Bank3 Yrs <= 5 Yrs6.50%
Karur Vysya Bank2 years and above6.45%
Punjab and Sind Bank1 Year – 10 Years6.45%
City Union BankAbove 5 years and upto 10 years6.30%
State Bank of IndiaGovernment Bank Benchmark6.10%
ICICI BankPrivate Bank Benchmark6.40%

Interest Rate for Fixed Deposit of more than 10 Years

The Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years.

BankDescriptionInterest Rate
Ratnakar Bank121 months to less than 240 months6.90%
IDBI Bank10 Years to 20 Years6.00%

Source: Bank Websites                                 Last Updated: January 8, 2020

Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.

Highest Interest Rate on Bank Fixed Deposits - January 2020

Highest Interest Rate on Bank Fixed Deposits – January 2020

Also Read:13 Investments to Generate Regular Income

Small Banks Fixed Deposit Interest Rates

The table below compares the interest rate offered by Small banks to that of SBI. The difference is substantial for mid-tenure deposits.

 Banks <1 year1 Year2 Years3 Years4 Years5 Years5 Year+
AU Small Finance Bank 7.00%7.63%7.77%7.77%7.50%7.50%7.25%
Capital Small Finance Bank 6.25%6.90%6.90%6.90%6.90%6.80%6.80%
Equitas Small Finance Bank7.50%8.00%7.80%7.80%7.00%7.00%7.00%
ESAF Small Finance Bank 7.50%8.00%8.00%7.75%7.30%7.30%7.30%
Fincare Small Finance Bank 7.00%8.00%8.50%9.00%8.00%8.00%7.00%
Jana Small Finance Bank8.25%8.25%8.25%8.25%8.25%8.25%7.00%
Suryoday Small Finance Bank 7.75%8.25%8.50%8.50%8.00%9.00%7.25%
Ujjivan Small Finance Bank7.00%8.00%8.00%7.50%7.00%7.00%6.50%
Utkarsh Small Finance Bank7.25%8.20%8.50%8.00%8.00%8.35%7.75%
SBI5.80%6.10%6.10%6.10%6.10%6.10%6.10%

                                                                                 Updated: January 8, 2020  

Helpful Posts on Fixed Deposits

Which bank offers Highest Interest Rate on Bank FD?

13 Most Important things to know before investing in Bank Fixed Deposits

Section 80TTB: Senior Citizens can Save Tax on their Interest Income

TDS threshold on Bank FD increased to Rs 40,000 from April 1, 2019 

Avoid TDS: fill Form 15G and 15H

Small Bank FDs offer interest up to 9% – Should you invest?

How SWP in Debt Funds generate higher returns than FD

How to increase bank deposit insurance through Joint accounts?

How Safe is Your Fixed Deposit in Bank?

How you loose Money in Fixed Deposits?

Fixed Deposits that you can use to save Tax 

Fixed Deposits for NRIs

Highest Interest Rate on Recurring Deposits

Understanding Compounding and Yield in Fixed Deposit

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7 High Rated Companies Offering more than Bank Fixed Deposits

All about Post Office FD Schemes

Fixed Deposit Interest Rate across all Banks

Earlier we used to provide only the top Fixed Deposit Rates but with several request from readers we have added a summary of FD rates for all banks.

Banks1 Years2 Years3 Years4 Years5 Years5+ Years
Allahabad Bank6.75%6.60%6.50%6.50%6.50%6.50%
Andhra Bank6.00%6.00%6.10%6.10%6.10%6.10%
Axis Bank6.45%6.50%6.50%6.50%6.50%6.50%
Bandhan Bank6.95%6.95%6.95%6.75%6.75%6.75%
Bank of Baroda6.30%6.25%6.25%6.25%6.25%6.25%
Bank of India6.40%6.25%6.25%6.25%6.25%6.25%
Bank of Maharashtra6.00%6.00%5.75%5.50%5.50%5.50%
Canara Bank6.40%6.00%6.25%6.25%6.25%6.25%
Catholic Syrian Bank6.50%6.25%6.25%6.25%6.25%6.25%
Central Bank of India6.30%6.25%6.25%6.25%6.25%6.25%
Citibank4.75%5.00%5.00%5.25%5.25%5.25%
City Union Bank6.60%6.35%6.35%6.35%6.35%6.30%
Corporation Bank6.50%6.55%6.35%6.35%6.35%6.35%
DCB Bank7.50%7.60%7.70%7.50%7.50%7.25%
Deutsche Bank7.00%7.00%7.25%7.50%7.75%x
Dhanalakshmi Bank6.90%6.90%6.50%6.50%6.50%6.50%
Digibank by DBS6.50%6.25%6.50%6.50%6.50%6.50%
Federal Bank6.60%6.70%6.60%6.60%6.60%6.60%
HDFC Bank6.30%6.40%6.40%6.30%6.30%6.30%
ICICI Bank6.30%6.30%6.40%6.40%6.40%6.40%
IDBI Bank6.45%6.40%6.45%6.25%6.25%6.25%
IDFC First Bank7.25%7.50%7.25%7.25%7.25%7.25%
Indian Bank6.40%6.30%6.25%6.25%6.25%6.25%
Indian Overseas Bank6.25%6.35%6.25%6.25%6.25%6.25%
Indus Ind Bank6.65%6.75%6.75%6.75%6.75%6.65%
J&K Bank6.30%6.35%6.35%6.35%6.00%6.00%
Karnataka Bank6.60%6.60%6.50%6.50%6.50%6.30%
Karur Vysya Bank6.35%6.45%6.45%6.45%6.45%6.45%
Kotak Mahindra Bank6.10%6.00%6.00%6.00%5.90%5.90%
Lakshmi Vilas Bank7.80%7.50%7.60%7.50%7.25%7.25%
Oriental Bank of Commerce6.25%6.25%6.25%6.25%6.25%6.25%
Post Office Time Deposit6.90%6.90%6.90%x7.70%x
Punjab and Sind Bank6.45%6.45%6.45%6.45%6.45%6.45%
Punjab National Bank6.30%6.30%6.25%6.25%6.25%6.30%
Ratnakar Bank7.45%7.50%7.50%7.25%7.40%7.40%
South Indian Bank6.60%6.90%6.60%6.60%6.60%6.60%
Standard Charted Bank6.50%6.60%6.60%6.60%6.60%6.60%
State Bank of India6.10%6.10%6.10%6.10%6.10%6.10%
Syndicate Bank6.40%6.50%6.25%6.25%6.25%6.25%
Tamilnad Mercantile Bank6.85%6.90%6.75%6.75%6.75%6.75%
UCO Bank6.30%6.30%6.30%6.25%6.25%6.25%
Union Bank of India6.40%6.45%6.30%6.30%6.30%6.30%
United Bank of India6.50%6.25%6.25%6.00%6.00%6.00%
Yes Bank7.40%7.50%7.50%7.25%7.25%7.25%

Bank FD Interest

The post compares the interest rate across all major banks in India. This would help you choose the best offering across banks and tenures.

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251 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – January 2020

  1. Hi sir,
    I am planning to FD 1000000 in karur vysya bank,, is it safe, can u suggest about bank

  2. Suryanarayana A says:

    Jeevan Akshya pension scheme intrest rate ..any proposal to reduce from sept 17 , i want to invest 50 L

  3. Is Ratnakar Bank reliable bank for investing in FD of rs 10lakhs

  4. is it safe to deposit 50,00,000 in RBL for FD?

  5. AU small finance bank is safe for FD.

    Which bank providing the highest rate of interest for 2 years & 6 months (2.6)

  6. Hi Amit,

    I am planning to invest around 10L for a year in FD. I have thought about IDFC Bank. Requesting your inputs or something else you would like to suggest. Thank you.

    -Amit

  7. If RBL is safe for 20 years term FD for 20 Lakhs ? as we know till 1 Lakh is safe against the insurance ? please advice

    • Yes RBL is private bank and quite safe. You can do fixed deposit with them for 20 years. Its just that you should keep you eyes/ears open for any bad news regarding the bank you put your money in.

  8. As the interest rate on PPF another cut down by 0.10% from 1 july, what will be the effect of this on fixed deposit interest rates?

  9. Hello sir, thank you so much for this latest information. I have sold the property in Hyderabad and now wanted to go for FD @ 33 lakhs. Would you please suggest which bank is good to invest (tax saving)?

    Many thanks

  10. Hi, is Urban cooperative bank safe for fd.

    • Any co-operative bank is riskier than government and private banks. Can’t comment specifically for Urban cooperative bank.

  11. Sir,
    I am planning to FD 25 Lakhs. As I wanted to get fixed monthly income . So my question is .
    Q1- On FD , can we get monthly income as a interest ?
    Q2- Is it good to FD in once bank or shall I split my amount in multiple banks,
    Q3- Which is the safe bank to do the FD? And with good interest rate.

    Please clarify my doubt .

    • Here are your answers:
      1. Yes you can get monthly interest credited to your savings account
      2. You can keep all money in one bank if its government or large private bank. If co-operative bank I would advise to split
      3. All government/private banks are safe. Co-operative banks are riskier. Just keep eyes/ears open about whats happening with your bank.

  12. Suryoday bank is safe for deposit

  13. Manish Diwakar says:

    I am living in Patna…can I make a FD in Deutsche Bank either online or offline. As there is no branch of Deutsche Bank in Patna, Bihar.

    • You might want to check that with Deutsche Bank customer care or alternatively use “Apply Now” and they can come with any possible solution!

  14. Navaneeth says:

    Dear sir,

    Is REPCO bank is safer for Fixed deposit?

  15. How can I save tax if In fd please mail me reply

    • You cannot save taxes on interest earned in FD. However you can invest in Debt mutual funds which are more tax efficient provided the investment tenure is for more than 3 years.

  16. SENTHILKUMAR R says:

    Very nice information. With this I understand post office is best than other Banks.

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