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Know All The Fixed Deposit Interest Rates 2020

IndianMoney.com Research Team | Posted On Thursday, March 05,2020, 05:34 PM

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Know All The Fixed Deposit Interest Rates 2020

 

 

It is a saving scheme offered by banks and non banking financial companies popularly called NBFCs. These are a type of term deposits that give a fixed rate of interest until maturity. The rate of interest is higher than savings bank account. Interest rates vary across banks. Fixed deposits offer saving and investing opportunity at a single place with no risk involved. 

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Know All The Fixed Deposit Interest Rates 2020

FDs Enjoy The Following Advantages:

  • Once you invest in FDs, the returns are assured.
  • The investor can choose to receive the interest payouts monthly or annually.
  • FDs are much safer than shares.
  • FD accounts can be opened for various tenures. It could be as less as 7 days and up to 10 years.
  • Majority of banks offer loan against FD. This assists the account holder during a financial emergency.

See Also: Fixed deposit interest rate

Loan Against FD

Loan against FD is a major benefit of fixed deposits. It is a secured loan, where the FD is pledged as security. The amount availed varies depending on the FD amount. It can range from 90-95% of the FD amount. Interest rates on these loans are 1-2% higher than the interest rate on FD. Any FD holder can apply for loan except:

  • Minor on whose name FD is opened
  • Investors who have applied for 5 year tax saving FD.

How FD Interest Rates are Calculated?

To calculate FD rates, the following formula is used:

A= Amount after maturity

P= Principal amount invested

R= Rate of interest

N= compounding frequency

T= time period of investment

Now,

A = P* (1+R%/N) ^ (N*T)

Let’s understand this better by taking an example. Consider the following figures:

P= Rs 1,00,000

R= 8%

T= 5 years

N=4, as the interest is compounded every 3 months.

Now,

A= 1,00,000 (1+0.08/4) ^ (4*5) = Rs 1,48,595.

There are certain factors which influence the interest rates. These are: 

  • If the amount deposited is higher, then interest paid out would be higher.
  • Higher FD rates for longer tenure.
  • Investing in cumulative FDs will fetch a higher interest rate.

See Also: 7 Tips on How to Invest in High-Interest Fixed Deposits

FD interest rates across banks in India.

Name of Bank

Tenure

General citizens

Senior Citizens

State Bank of India

7 days to 10 years

5% to 6.8%

5.5% to 7.3%

HDFC bank

7 days to 10 years

3.5% to 7.3%

4% to 7.8%

ICICI bank

7 days to 10 years

4% to 7.1%

4.5% to 7.6%

Axis bank

7 days to 10 years

3.5% to 7.2%

3.5% to 7.85%

Canara bank

7 days to 10 years

5% to 6.5%

5.5% to 7%

IDFC bank

7 days to 10 years

4% to 8.5%

4.5% to 9%

Kotak Mahindra bank

7 days to 10 years

3.5% to 6.9%

4% to 7.4%

Bank of Baroda

7 days to 10 years

4.5% to 6.6%

5% to 7.10%

Punjab National bank

7 days to 10 years

5% to 6.75%

5.5% to 7.25%

Yes Bank

7 days to 10 years

5% to 7.25%

5.5% to 7.75%

Small Finance Banks

Name of Bank

Tenure

General citizens

Senior citizens

Ujjivan small finance bank

7 days to 10 years

5% to 8.1%

Additional 0.50%

Jana small finance bank

7 days to 10 years

5% to 10%

5.5% to 11.05%

Equitas small finance bank

7 days to 10 years

5% to 8.25%

Additional 0.60%

AU small finance bank

7 days to 10 years

5.25% to 8%

Additional 5.75% to 8.53%

Fincare small finance bank

7 days to 10 years

4% to 9%

4.5% to 9.5%

ESAF small finance bank

7 days to 10 years

5.5% to 8%

6% to 9.25%

North east small finance bank

7 days to 10 years

4.75% to 8.5%

5.25% to 9%

Deposit Insurance and Credit Guarantee Corporation (DICGC)

This is a subsidiary of RBI launched for the purpose of ensuring guarantees against all bank deposits like saving, current and fixed recurring deposit. A maximum limit of Rs 5,00,000 against each deposit is ensured. DICGC plays a major role in creating trust factor in the minds of the depositors. All banks irrespective of their size are regulated by DICGC.  It has the right to cancel a bank’s registration if it fails to make premium payments for three consecutive half yearly periods.

See Also: Should You Invest In FDs?

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