Top Fixed Deposit Interest Rates in July 2020

The post lists down the rate of Fixed Deposit Interest Rates as of July 5, 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 have lowered their FD rates.
  2. Most banks offer FDs for tenure of 7 Days to 10 Years.
  3. The Ratnakar Bank IDBI Bank & Karnataka Bank (for minors) 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. In case the PAN number is not updated with the bank, the TDS rate is 20%
  10. There might be penalty for pre-mature withdrawal of Fixed Deposits

Top Fixed Deposit Interest Rates

The highest interest rate on fixed deposit is offered by RBL Bank (36 months to 36 months 1 day) at 7.50%.

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.

Best Fixed Deposit Interest Rates for Less than 1 Year

The highest interest rate is offered by IDFC First Bank (181 days – less than 1 year) at 7.00%.

BankDescriptionInterest Rate
IDFC First Bank181 days – less than 1 year7.00%
IDFC First Bank91 – 180 days6.75%
RBL Bank181 days to 364days6.65%
DCB Bank6 months to less than 12 months6.60%
IDFC First Bank46 – 90 days6.50%
Yes Bank6 months to < 1 Year6.50%
RBL Bank91 days to 180 days6.40%
Bandhan Bank1 year to 18 months6.25%
IDFC First Bank30 – 45 days6.25%
IndusInd Bank270 days or below 1 years6.25%
RBL Bank46 days to 90 days6.15%
Standard Charted Bank210 to 364 days6.10%
DCB Bank91 days to less than 6 months6.00%
IndusInd Bank181 days to 269 days6.00%
Standard Charted Bank90 to 210 days6.00%
Yes Bank3 months to < 6 months6.00%
Lakshmi Vilas Bank181 – 364 Days5.80%
IndusInd Bank91 days to 180 days5.75%
Tamilnad Mercantile Bank271 days to less than 1 year5.75%
Lakshmi Vilas Bank91-180 Days5.70%
South Indian Bank361 days to 10 Years5.70%
Indian Overseas Bank 270 days to < 1 year5.60%
Karnataka Bank91 days to 364 days5.60%
Tamilnad Mercantile Bank180 – 270 days5.60%
DCB Bank15 days to 90 days5.50%
Dhanlaxmi Bank180 days to less than one year5.50%
IndusInd Bank61 days to 90 days5.50%
Standard Charted Bank45 to 89 days5.50%
Tamilnad Mercantile Bank91 to 179 days5.50%
RBL Bank15 days to 45 days5.50%
Axis Bank11 months 25 days < 1 year 5 days5.45%
Karur Vysya Bank91 Days to less than 1 year5.45%
Indian Overseas Bank 180-269 days5.35%
Tamilnad Mercantile Bank46 – 90 Days5.25%
South Indian Bank91 days to 360 days5.20%
Bandhan Bank6 months to less than 1 year5.15%
Indian Overseas Bank 121-179 days5.10%
Punjab and Sind Bank 270 – 364 Days5.10%
Bank of India180 days to less than 1 year5.00%
CSB Bank181 days to less than 1 Year5.00%
City Union Bank271 days to 364 days5.00%
Dhanlaxmi Bank91 days to 179 days5.00%
IDFC First Bank15 – 29 days5.00%
Punjab and Sind Bank 180 – 269 Days5.00%
Canara Bank 180 days to less than 1 Year4.85%
Central Bank of India 180 – 364 days4.80%
ICICI Bank290 days to less than 1 year4.75%
State Bank of India 211 days to less than 1 year4.40%

Do you Know about Hidden Charges in Banks?

Do you know you pay a few thousand rupees every year to hidden charges of banks. This could range from more known fines for not maintaining minimum balance amount to lesser know POSDEC charge of ICICI Bank. There could be charges for ATM usage, branch visits, cheque books and so on. Do read our article on Hidden Charges in Banks and what you can do about it?

Best Fixed Deposit Interest Rates for 1 – 2 Years

The highest interest rate is offered by DCB Bank (18 Months) and IDFC First Bank (1 Year to 10 Years) at 7.25%.

BankDescriptionInterest Rate
DCB Bank18 months7.25%
IDFC First Bank1 year – 10 years7.25%
DCB BankMore than 18 months to less than 36 months7.20%
RBL Bank12 months to less than 24 months7.20%
DCB Bank15 months to less than 18 months7.00%
DCB Bank12 months 1 day to less than 15 months6.90%
Lakshmi Vilas Bank400 Days6.75%
Yes Bank1 year to 10 years6.75%
Standard Charted Bank1 Year – 375 days6.30%
Bandhan Bank1 year to 18 months6.25%
IndusInd Bank1 Years to below 3 years6.25%
Lakshmi Vilas Bank365 Days to less than 3 Years6.25%
Bandhan BankAbove 18 months to less than 3 years6.15%
Tamilnad Mercantile Bank1 Year to less than 2 years6.10%
Tamilnad Mercantile Bank2 years to less than 3 years6.00%
South Indian Bank18 months5.90%
Tamilnad Mercantile Bank3 years to 10 years5.90%
Dhanlaxmi Bank640 days5.85%
Federal Bank15 Months5.85%
Dhanlaxmi Bank500 days5.80%
Dhanlaxmi BankAbove 2 years upto & inclusive of 10 years5.80%
Karur Vysya Bank1 year to less than 2 years5.80%
CSB Bank15 months5.75%
City Union BankAbove 1 year and up to 3 years5.75%
Dhanlaxmi Bank1 Year and above upto & inclusive of 2 years5.75%
IDBI Bank> 1 year – 2 years5.75%
Indian Overseas Bank 444 days5.75%
Karnataka Bank1 year to 2 Years5.75%
Federal BankAbove 1 Year5.70%
IDBI Bank1 Year5.70%
Indian Overseas Bank 1 year to < 10 years5.70%
South Indian Bank361 days to 10 Years5.70%
Federal Bank1 year5.60% 
Punjab and Sind Bank 1 Year – 10 Years5.55%
Bank of India1 Year & above but less than 2 Yrs5.50%
Canara Bank 1 year & above to less than 3 years5.50%
CSB Bank1 Year to 10 Years5.50%
City Union Bank1 year5.50%
DCB Bank12 months5.50%
Axis Bank11 months 25 days < 1 year 5 days5.45%
Axis Bank18 Months < 2 years5.45%
Axis Bank1 year 5 days < 18 months5.40%
ICICI Bank1 year < 18 months5.15%
ICICI Bank18 months days to 3 years5.35%
State Bank of India 1 years to less than 3 years5.10%
Post Office FD1 Year5.50%
Post Office FD2 years5.50%

How to generate Regular Monthly Income?

There can be several situations when we look for regular income. This is especially true for people after retirement without any pension. Also there would be new entrepreneurs who need regular income until their start-up stabilises. We tell you 13 investments which can generate regular income for you along with their pros and cons.

Best Fixed Deposit Interest Rates for 2 – 5 Years

The highest interest rate is offered by RBL Bank (36 months to 36 months 1 day) at 7.50%

BankDescriptionInterest Rate
RBL Bank36 months to 36 months 1 day7.50%
DCB Bank36 months to 120 months7.35%
IDFC First Bank1 year – 10 years7.25%
RBL Bank24 months to less than 36 months7.25%
DCB BankMore than 18 months to less than 36 months7.20%
Deutsche Bank5 years7.00%
RBL Bank36 months 2 days to less than 60 months7.00%
Yes Bank2 years < 3 years7.00%
IndusInd Bank3 years to below 61 month6.75%
Yes Bank1 year to 10 years6.75%
IndusInd Bank1 Years to below 3 years6.25%
Lakshmi Vilas Bank365 Days to less than 3 Years6.25%
Standard Charted Bank375 days to less than 3 years6.20%
Bandhan BankAbove 18 months to less than 3 years6.15%
Bandhan Bank3 years to less than 5 years6.10%
Lakshmi Vilas Bank3 Years to less than 10 Years6.10%
Karur Vysya Bank3 years and above6.00%
Standard Charted Bank3 years to 5 years6.00%
Tamilnad Mercantile Bank3 years to 10 years5.90%
Karur Vysya Bank2 years to less than 3 years5.85%
Dhanlaxmi BankAbove 2 years upto & inclusive of 10 years5.80%
IDBI Bank5 years5.80%
City Union BankAbove 1 year and up to 3 years5.75%
Karnataka BankAbove 2 Year to 10 years5.75%
Federal BankAbove 1 Year5.70%
IDBI Bank>2 years to < 5 years5.70%
Indian Overseas Bank 1 year to < 10 years5.70%
South Indian Bank361 days to 10 Years5.70%
Punjab and Sind Bank 1 Year – 10 Years5.55%
Axis Bank2 years < 10 years5.50%
City Union BankAbove 3 years and up to 5 years5.50% 
ICICI Bank18 months days to 3 years5.35%
ICICI Bank3 years 1 day to 10 years5.50%
State Bank of India 1 years to less than 3 years5.10%
State Bank of India 3 years to less than 5 years5.30%
Post Office FD2 years5.50%
Post Office FD3 years5.50%
Post Office FD5 years6.70%

Additional Tax Exemption for Senior Citizens on Interest Income

Budget 2018 introduced a new section 80TTB, which gives additional tax exemption up to Rs 50,000 to Senior Citizens for interest income. Additionally, the threshold for TDS (Tax Deduction at Source) on interest income for Senior Citizens has been raised from Rs 10,000 to Rs 50.000 from FY 2018-19.  In case your income is less than the income tax threshold you can avoid TDS by filling and submitting Form 15H to relevant banks and financial institutions.

Best Fixed Deposit Interest Rates for 5 – 10 Years

The highest interest rate is offered by DCB Bank (36 months to 120 months) at 7.35%.


BankDescriptionInterest Rate
DCB Bank36 months to 120 months7.35%
IDFC First Bank1 year – 10 years7.25%
RBL Bank60 months to less than 120 months7.15%
Yes Bank1 year to 10 years6.75%
IndusInd Bank61 month and above6.65%
Lakshmi Vilas Bank3 Years to less than 10 Years6.10%
Bandhan Bank5 years to upto 10 years6.00%
Karur Vysya Bank3 years and above6.00%
Tamilnad Mercantile Bank3 years to 10 years5.90%
Dhanlaxmi BankAbove 2 years upto & inclusive of 10 years5.80%
Karnataka BankAbove 2 Year to 10 years5.75%
Federal BankAbove 1 Year5.70%
IDBI Bank> 5 years – 7 years5.70%
Indian Overseas Bank 1 year to < 10 years5.70%
South Indian Bank361 days to 10 Years5.70%
Punjab and Sind Bank 1 Year – 10 Years5.55%
Axis Bank2 years < 10 years5.50%
ICICI Bank3 years 1 day to 10 years5.50%
State Bank of India 5 years and up to 10 years5.40%
Post Office FD5 years6.70%

Mutual Fund or Fixed Deposit?

In case you are a bit investment savvy, pay tax at higher rates and take some risk you must evaluate SWP in liquid funds. SWP gives you almost similar returns as Banks FDs but with careful planning you can reduce your tax outgo. The added advantage of Mutual fund is there is No TDS. Also in case of emergency you can withdraw your liquid fund without any penalty, where as there may be some penalty on prematurely breaking your FD.

Best Fixed Deposit Interest Rates for more than 10 Years

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

BankDescriptionInterest Rate
RBL Bank120 months to 240 months6.65%
Karnataka BankAbove 10 years (Minor Deposit Scheme)5.65%
IDBI Bank>10 years – 20 years5.50%

Source: Bank Websites                                 Last Updated: July 6, 2020

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

Best Fixed Deposit Interest Rates
Best Fixed Deposit Interest Rates

Small Banks FD 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 Bank6.50%7.05%7.25%7.00%7.00%7.00%7.00%
Capital Small Finance Bank6.00%6.65%6.50%6.50%6.50%6.50%6.25%
Equitas Small Finance Bank6.60%7.10%7.15%7.35%6.75%6.75%6.75%
ESAF Small Finance Bank6.25%7.50%7.25%7.00%7.00%7.00%6.50%
Fincare Small Finance Bank6.25%6.95%7.10%7.30%7.30%7.50%6.50%
Jana Small Finance Bank7.00%7.75%8.00%8.00%7.00%7.50%6.50%
Suryoday Small Finance Bank7.00%7.25%7.50%7.75%7.75%9.00%7.25%
Ujjivan Small Finance Bank5.65%6.95%6.95%6.50%6.25%6.25%6.00%
Utkarsh Small Finance Bank6.50%7.75%8.00%7.75%7.75%7.75%7.75%
North East Small Finance Bank5.50%7.50%8.00%8.00%7.00%7.00%6.50%
SBI4.40%5.10%5.10%5.30%5.30%5.40%5.40%

                                                                                 Updated: June 5, 2020  

Should you Invest in Small Bank FDs?

All the small banks listed above have 2% to 3% higher interest on FDs as compared to SBI and other bigger banks. The question is should you invest in them. My take is all the above banks are new but well regulated by RBI. You can invest up to Rs 5 lakh in these banks as that is the amount insured. The only thing to keep in mind is to keep eyes and ears open for any events that may adversely impact the bank.

Helpful Posts on Fixed Deposits

Summary of Fixed Deposit Interest Rates across 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
Axis Bank5.45%5.45%5.50%5.50%5.50%5.50%
Bandhan Bank6.25%6.15%6.10%6.10%6.00%6.00%
Bank of Baroda 5.10%5.10%5.30%5.30%5.30%5.30%
Bank of India5.50%5.50%5.40%5.40%5.40%5.40%
Bank of Maharashtra 5.25%5.25%5.25%5.25%5.25%5.25%
Canara Bank 5.50%5.50%5.45%5.45%5.45%5.45%
CSB Bank5.50%5.75%5.50%5.50%5.50%5.50%
Central Bank of India 5.35%5.35%5.35%5.35%5.35%5.35%
Citibank3.00%3.52%3.80%3.90%3.90%3.90%
City Union Bank5.50%5.75%5.75%5.50%5.50%5.25%
DBS Bank4.90%5.15%5.30%5.50%5.50%5.50%
DCB Bank6.75%7.25%7.35%7.35%7.35%7.35%
Deutsche Bank4.00%4.50%4.75%5.00%7.00%x
Dhanlaxmi Bank5.75%5.85%5.80%5.80%5.80%5.80%
Federal Bank5.60%5.70%5.70%5.70%5.70%5.70%
HDFC Bank5.25%5.25%5.50%5.50%5.50%5.50%
HSBC Bank3.25%4.00%4.00%4.00%4.00%4.00%
ICICI Bank5.15%5.35%5.50%5.50%5.50%5.50%
IDBI Bank5.70%5.75%5.70%5.70%5.80%5.70%
IDFC First Bank7.25%7.25%7.25%7.25%7.25%7.25%
Indian Bank 5.45%5.35%5.35%5.35%5.35%5.35%
Indian Overseas Bank 5.70%5.75%5.70%5.70%5.70%5.70%
IndusInd Bank7.00%7.00%7.00%6.75%6.75%6.65%
Jammu & Kashmir Bank5.50%5.50%5.50%5.50%5.50%5.50%
Karnataka Bank5.75%5.75%5.65%5.65%5.65%5.65%
Karur Vysya Bank5.80%5.85%6.00%6.00%6.00%6.00%
Kotak Mahindra Bank5.15%4.90%4.75%4.75%4.50%4.50%
Lakshmi Vilas Bank6.25%6.75%6.10%6.10%6.10%6.10%
Nainital Bank5.40%5.50%5.50%5.50%5.50%5.50%
Post Office Time Deposit5.50%5.50%5.50%x6.70%x
Punjab and Sind Bank 5.55%5.55%5.55%5.55%5.55%5.55%
Punjab National Bank 5.25%5.25%5.25%5.30%5.30%5.30%
RBL Bank7.20%7.20%7.50%7.00%7.00%7.15%
South Indian Bank5.70%5.90%5.70%5.70%5.70%5.70%
Standard Charted Bank6.20%6.20%6.00%6.00%6.00%x
State Bank of India 5.10%5.10%5.30%5.30%5.40%5.40%
Tamilnad Mercantile Bank6.10%6.00%5.90%5.90%5.90%5.90%
UCO Bank 5.50%5.50%5.50%5.45%5.45%5.45%
Union Bank of India 5.40%5.40%5.40%5.45%5.45%5.45%
Yes Bank6.75%7.00%7.00%6.75%6.75%6.75%

Fixed Deposit Interest Rates FAQs

✅Which is the best fixed deposit scheme in India?

As of July 2020, RBL Bank offers 7.50% for its 36 months to 36 months 1 day fixed deposit.

✅What is best FD for less than year?

The highest interest rate is offered by IDFC First Bank for 181 days to less than 1 year FD at 7.00%.

✅What is the top Fixed Deposit Interest Rates for 1 year in banks?

The best FD interest rates for 1 year deposit is offered by IDFC First bank (for 1 to years) at 7.25%. DCB Bank also offers 7.25% for 18 months FD.

✅What is the top Fixed Deposit Interest Rates for 2 years in banks?

The best FD interest rates for 2 years deposit is offered by IDFC Fist bank at 7.25%. DCB Bank offers 7.2% for 18 to 36 months deposit.

✅What is the top Fixed Deposit Interest Rates for 3 years in banks?

RBL Bank (Ratnakar bank) offers 7.5% for 36 months FD. DCB Banks also offers 7.35% for 3 year fixed deposit scheme.

✅What is the top Fixed Deposit Interest Rates for 5 years in banks?

DCB Banks also offers 7.35% for 5 year fixed deposit scheme. IDFC First bank also offers 7.25% for 5 year deposit.

✅What is the top Fixed Deposit Interest Rates for more than 5 years in banks?

Most banks offer FD up to 10 years tenure. DCB Bank offers 7.35% for 10 year deposit. IDFC First bank also offers 7.25% for 10 year deposit.

✅What is the maximum tenure of bank fixed deposits?

Most bank offer FD up to 10 years. However Ratnakar bank and IDBI bank offer deposits up to 20 years.

✅Are Bank FDs safe?

Generally speaking bank FDs are safe as banks are rigorously monitored by RBI. The FD in Government owned banks like SBI, PNB are the safest. This is because government would intervene and pay the depositors. Next is big private banks like ICICI & HDFC followed by smaller private banks. After this we have small finance banks. Co-operative banks are worst of the lot and I would not trust them with my money. So until there are compelling circumstances keep away from co-operative banks. You can learn from recent example where Yes Bank was rescued by the government and no depositors suffered. However depositors of PMC Bank (a co-operative bank) are still suffering. You can learn more about this in our detailed article about How safe is your Bank Fixed Deposit?

✅Which is better investment – Mutual Funds or Fixed Deposits?

The investment pre-tax return is almost similar for fixed deposit and liquid mutual funds. However SWP in liquid mutual funds provide a tax efficient way of generating regular income. So, liquid mutual funds is better for you if you are investment savvy, can bear some risk and are in higher tax bracket. Else stay with FD in well known banks.

✅How is FD taxed?

The interest earned on fixed deposit is taxable as per your income tax slab. For senior citizens an additional exemption of Rs 50,000 under section 80TTB is available for interest income from banks/post office.

✅What are the advantages of fixed deposits?

FDs are popular as it have various advantages:
– Its safe especially if you stay with Public or large private banks or post office
– It has guaranteed returns
– its easy to understand and handle

✅What are the disadvantages of fixed deposits?

The biggest disadvantage of FD is the interest offered on FD hardly beats inflation. And even if it beats inflation, it does not especially for higher tax brackets. This way you actually loose value of money in the long run.
The second disadvantage is unpredictability of interest rate. Interest rates go up and down. In case your FD matures when the interest rate is low, you may not be able to invest and generate the same returns as you used to do earlier.

✅Can I get loan on my fixed deposit?

Yes most banks offer loans up to 90% to 95% of fixed deposit. Not only this some banks also offer credit card against fixed deposits.

✅Can I get monthly interest from my fixed deposit?

The interest rates mentioned on bank websites are for cumulative FD. However if you want to receive monthly income from FD, you need to contact the bank. Most banks have the arrangement where they can pay you monthly interest. A point to note the interest would be lower than what you see on the website. This is because the interest rates on websites are for quarterly compounding but if you want monthly payment, the interest rate has to be adjusted accordingly. You can also look out for products similar to Post Office MIS.

252 thoughts on “Top Fixed Deposit Interest Rates in July 2020”

  1. Dear Amit,
    I would like to invest in FD or any other instrument where the rating of the institution is AAA and I shall get the interest in every half year / year without hassles. I am a senior citizen. It may be FDs of state/central govt, banks other NBFCs with AAA rating. Any past experience with that institution will be appreciated. The interest rate should be +-10 %.
    Can you please suggest.

  2. Dear Amit,

    We appreciate your valuable support to update the Bank Interest rate according to latest changes of 05 Feb 2018.

    Regards,
    Mohit

  3. As search on online i found Bajaj Finance offering highest interest rate on fixed deposit in comparison of Banks that is true? if Yes so it is save for investment?

  4. Are u sure the FD interest rates here are for real ??? For example, the Standard Chartered Bank only offers 1.3%/pa for amount >S$100,000 for one yr. How come & not >7% as stated in the abv table ???

  5. chandan kumar Mitra

    Hi sir myself chandan mitra, i want to know if i get interest more than 10000 per financial year in FD, so what to do save my money from TDS deduction? and suggest invest plan to get 1000000 in 15 years may be invest in lumsum or SIP which would be more safer. kindly help thanks.

  6. Ujjivan small finance bank has give u the 8% interest rates and for senior citizen 8.5% if u have interred plz contact me

    regards
    Madhu
    9480543700

  7. Dear sir,
    I want to take loan and also want to invest money in FD SO
    Tell me about loan against FD is better option or Home loan is better considering interest rates.

  8. Dear Amit ,
    i am plan for rs 1000000 inwest in fd and save tex.any other option aveleble to ern profit in safe garrented mode of inwest,please sajes me.

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