Best FD Interest Rates in Jan-2020 | Highest Bank FD Rates

Best FD Interest Rates in Jan-2020 - Highest Bank FD Rates in IndiaBest Fixed Deposit Interest Rates in Jan-2020


Bank Fixed deposits provide fixed and stable income for moderate to low risk investors. While banks have been reducing FD interest in the last few months, there are several banks that are offering highest FD rates. We have been tracking FD interest rates and providing Bank fixed deposit rates comparison table on a regular basis. In this article, we would provide Latest Bank FD Interest Rates in Jan-2020. We would also provide Best FD Interest Rates from banks for 1 year, 2 years, 3 year, 4 year and 5 years tenure.

Also Read: Best Mutual Funds to invest in 2020

Latest Bank FD Interest Rates in Jan 2020 – Foreign Banks in India


Here are the latest FDs from foreign banks in India that are offering interest rates between 5% to 7.75% per annum for 1 year to 5 years tenure. Deutsche Bank is the only bank that is offering highest FD interest rates now.

Bank1 Year2 Years3 Years4 Years5 Years
Deutsche Bank5.50%7.00%7.00%7.25%7.75%
Citibank5.00%5.00%5.00%5.25%5.25%
HSBC5.00%5.00%6.00%5.00%5.00%

Latest Bank FD Interest Rates in Jan-2020 – Private Banks


Here are the latest FDs from private banks in India that are offering interest rates between 6.1% to 7.7% per annum for 1 year to 5 years tenure.

Bank1 Year2 Years3 Years4 Years5 Years
RBL Bank7.45%7.50%7.50%7.50%7.25%
Tamilnad Merchantile Bank6.85%6.90%6.75%6.75%6.75%
Development Credit Bank (DCB)7.00%7.40%7.70%7.50%7.50%
KVB6.35%6.45%6.45%6.45%6.45%
Federal Bank6.50%6.60%6.60%6.60%6.60%
HDFC Bank6.30%6.30%6.40%6.30%6.30%
Lakshmi Vilas Bank7.50%7.50%7.50%7.50%7.25%
Yes Bank7.25%7.25%7.25%7.25%7.25%
Axis Bank6.40%6.50%6.50%6.50%6.50%
Citi Union Bank6.60%6.35%6.35%6.35%6.35%
ICICI Bank6.20%6.30%6.40%6.40%6.40%
Karnataka Bank6.60%6.60%6.50%6.50%6.50%
Kotak Bank6.30%6.25%6.20%6.20%6.10%
Indusindbank6.65%6.75%6.75%6.75%6.75%
IDFC First Bank7.25%7.25%7.25%7.25%7.25%
Bandhan Bank7.25%7.40%7.35%7.35%7.25%

Latest Bank Fixed Deposit Rates in Jan-2020 – Public Sector Banks


Here are the latest FDs from public sector banks in India that are offering interest rates between 6% to 7.5% per annum for 1 year to 5 years tenure.

Bank1 Year2 Years3 Years4 Years5 Years
Corporation Bank6.60%6.50%6.50%6.50%6.50%
Indian Overseas Bank6.40%6.40%6.40%6.40%6.40%
Punjab National Bank6.30%6.30%6.25%6.25%6.25%
Allahabad Bank6.50%6.35%6.25%6.25%6.25%
Andhra Bank6.00%6.10%6.10%6.10%6.10%
Bank of Baroda6.25%6.25%6.25%6.25%6.25%
Canara Bank6.40%6.00%6.25%6.25%6.25%
Central Bank of India6.30%6.25%6.25%6.25%6.25%
IDBI Bank6.45%6.40%6.25%6.25%6.25%
Union Bank of India6.30%6.30%6.30%6.30%6.30%
Oriental Bank of Commerce6.25%6.25%6.25%6.25%6.25%
State Bank of India (SBI)6.25%6.25%6.25%6.25%6.25%
Bank of India6.40%6.25%6.25%6.25%6.25%
Indian Bank6.45%6.50%6.50%6.50%6.30%
Syndicate bank6.40%6.50%6.25%6.25%6.25%
Repco Bank7.50%7.50%7.00%7.00%7.00%

Best FD Interest Rates for 1 year tenure


Here are the list of banks that are offering highest FD rates for 1 year tenure. If you have short term need either to pay off kids education fees, down payment of car or home or any other requirement, you can park your funds for such short term in this 1 year FD scheme.

Bank1 Year
Lakshmi Vilas Bank7.50%
Repco Bank7.50%
RBL Bank7.45%
Yes Bank7.25%
IDFC First Bank7.25%
Bandhan Bank7.25%
Development Credit Bank (DCB)7.00%
Tamilnad Merchantile Bank6.85%
Indusindbank6.65%
Citi Union Bank6.60%
Karnataka Bank6.60%
Corporation Bank6.60%

Best FD Interest Rates for 2 years tenure


Here are the list of banks that are offering highest fixed deposit interest rates for 2 year tenure. If you are accumulating some money for down payment of housing loan or plot or any other requirement, you can park your funds for such short term in this 2 years FD scheme.

Bank2 Years
Lakshmi Vilas Bank7.50%
Repco Bank7.50%
RBL Bank7.50%
Bandhan Bank7.40%
Development Credit Bank (DCB)7.40%
Yes Bank7.25%
IDFC First Bank7.25%
Deutsche Bank7.00%
Tamilnad Merchantile Bank6.90%

Best FD Interest Rates for 3 years tenure


Below list offer highest rates for 3 years FD scheme. Whatever might be requirement, if you want to grow money faster, invest in highest paid FD scheme. 

Bank3 Years
Development Credit Bank (DCB)7.70%
Lakshmi Vilas Bank7.50%
RBL Bank7.50%
Bandhan Bank7.35%
Yes Bank7.25%
IDFC First Bank7.25%
Repco Bank7.00%
Deutsche Bank7.00%
Tamilnad Merchantile Bank6.75%
Indusindbank6.75%

Best FD Interest Rates for 4 years tenure


Below banks offer good interest rates for 4 years Fixed Deposits. 

Bank4 Years
Development Credit Bank (DCB)7.50%
Lakshmi Vilas Bank7.50%
RBL Bank7.50%
Bandhan Bank7.35%
Yes Bank7.25%
IDFC First Bank7.25%
Deutsche Bank7.25%
Repco Bank7.00%
Tamilnad Merchantile Bank6.75%
Indusindbank6.75%

Best FD Interest Rates for 5 year tenure


This list provide highest interest rates for 5 years FD scheme. One need to check with bank about 5 years tax saver FD scheme if you wish to save income tax u/s 80c. 

Bank5 Years
Deutsche Bank7.75%
Development Credit Bank (DCB)7.50%
Lakshmi Vilas Bank7.25%
RBL Bank7.25%
Bandhan Bank7.25%
Yes Bank7.25%
IDFC First Bank7.25%
Repco Bank7.00%
Tamilnad Merchantile Bank6.75%
Indusindbank6.75%

FAQs about Bank Fixed Deposit Interest Rates


1) Which Bank is Best for Fixed Deposit?

One would generally invest in fixed deposit wherever they have a savings account. Instead of that one should check for best bank that is offering highest FD interest rates and open a FD. You might think which bank is best for Fixed Deposit. This would depend on the tenure for which you want to invest. Based on that choose a bank that offers best FD rates.

2) Which bank is safe for FD?

Post PMC bank scam, investors are worried and thinking which bank is safe for FD. Bank which has strong fundamentals today can collapse tomorrow. Hence it is difficult to assess. However, one can invest in large bank FDs or fixed deposits in nationalized banks. These could be safe to some extent.

3) What are fixed deposit interest rates in post office?

Post office fixed deposits are offered for 1 year to 5 years tenure. Post office fixed deposit interest rates for 1 year, 2 years and 3 years is 6.9%. This interest would be compounded every quarter. Post office FD rate for 5 years tenure is 7.7%. This FD scheme is eligible for income tax deduction u/s 80c upto Rs 1.5 Lakhs.

4) Which bank offers gives highest interest rates on savings account?

Many salaried individuals would continue to keep their salaries in saving account every month. If such individuals can credit their salary in highest interest rate SB account, this could really benefit them. Currently Bandhan Bank, Yes Bank, IDFC First Bank, Kotak Bank, Lakshmi villas Bank, Rathnakar Bank are offering highest interest rates on savings account between 6% to 7%.

5) How would I know when I would Crorepati by investing in bank FDs?

There are several low risk investors who might be investing only in bank FDs and might think when they can become lakpathi or crorepathi. You can check any of the FD interest rates calculator by giving monthly RD or FD amount and interest rate and compute the future value in next 8 years or 10 years or 15 years.

6) SBI FD Rates are low compared to other banks, why?

SBI being one of the largest bank in India has been offering low interest rates. Few quarter back it offered only upto 5.5% on various tenure FDs. Currently it is offering upto 6.25%. This is currently still low. One can invest in highest interest rate bank FDs.

7) Is FD a good investment?

Bank FDs are always one of the safe investment option in India especially for low risk takers.

You may like: Post office Offers upto 7.7% interest rates

8) Can I open Bank FD for more than 10 years?

Considering the interest rate fluctuations, banks offer FDs only for 10 years. You cannot open FD for more than 10 years. However, you can keep auto renew beyond 10 years. Interest rates during that time would be applicable which is renewed beyond this period.

9) Which Bank FD qualifies for tax savings?

Bank FD’s which are called as tax saver FDs that are opened for 5 years and above are qualified for tax savings u/s 80c upto Rs 1.5 Lakhs in a financial year.

10) How Bank FD interest is taxed?

Interest received on bank FD is fully taxable in the hands of the investor. It will be taxed based on the income tax applicable to you. TDS will be deducted by the bank if the interest payment in a single financial year exceeds Rs 10,000, as per income tax act. If you are not required to pay income tax due to various reasons, one can submit Form 15G or Form 15H (if applicable) to the bank.

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Suresh KP

Best Fixed Deposit Interest Rates in Jan-2020

Suresh KP

7 comments

  • Dr. M. Goswamy

    Will it be possible fr you to write some articles on Small Finance Banks? Starting from their credibilityto comparative FD rates and your expert advice re. their worth / acceptibility /credibilty etc. Thanks

  • Krishnamurthy

    Hello Suresh!
    Happy New Year. There are Small Finance Banks that are aggressively marketing their FD product. They are offering high interest rates in both FDs and SB accounts. Can you survey these banks and give us an overall picture? Are they governed and policed by RBI? An overview in this sector of banks will be greatly appreciated by senior citizens who are solely depending on interest income.

  • Vinod

    Can you also make a monthly article on Interest % offered on Savings & Current account balances? Or at least quarterly article. If you already have an article on this site, please share the link here. Thanks.

    And keep up the good work Suresh 🙂

  • Maven Cruz

    I always wait for this article and this time i must say it was awesome.
    Thank you

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