Fixed Deposit (FD) is one of the most common and preferable financial instruments in India for wealth creation and parking surplus money. The low risk and guaranteed returns features make bank FDs the most attractive option over equities and other market-related securities.
The interest rate offered by banks and other financial institutes depends on the tenure of the fixed deposit. In most cases, the short-term fixed deposits offer lower interest rates on the deposit compared to the medium-term period (2 to 5 years) and long term period (over 5 years).
Here are the list of best fixed deposit plans in India offered by different banks and financial institutes in 2019.
Best FD Rates by Public Sector Banks
| Bank | FD Interest Rate (%) | Deposit Tenure | ||
| Regular Citizens | Senior Citizens | |||
| State Bank of India | 6.50 | 7 | 1 year to less than 2 year | |
| Bank of Baroda | 6.60 | 7.10 | 1 year to 400 days | |
| Punjab National Bank | 6.60 | 7.10 |
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| Bank of India | 6.50 | 7 | 1 year to less than 2 year | |
| Canara Bank | 6.50 | 7 | One Year | |
Best FD Rates by Private Sector Banks
| Bank | FD Interest Rate (%) | Deposit Tenure | |
| Regular Citizens | Senior Citizens | ||
| Kotak Mahindra Bank | 6.80 | 7.30 | 390 Days (12 months 25 days) |
| HDFC Bank | 7 | 7.5 | 2 years 1 day- 3 years |
| ICICI Bank | 7.10 | 7.60 | 18 months to 2 years |
| Axis Bank | 7.10 | 7.75 |
|
| Federal Bank | 7.25 | 7.75 | 20 months |
| RBL Bank | 7.75 | 8.25 | 2 years to 2 years 364 days |
| Bandhan Bank | 7.65 | 8.40 | 2 years to less than 5 years 5 years to less than 7 years 7 years to up to 10 years |
| Yes Bank | 7.85 | 8.35 | 12 Months 10 Days to12 Months 20 Days |
| DCB Bank | 7.85 | 8.35 | 18 months |
| IDFC First Bank | 8 | 8.50 |
|
Best FD Rates by Small Finance Banks
| Banks | FD Interest Rate (%) | Deposit Tenure | |
| Regular Citizens | Senior Citizens | ||
| Utkarsh Small Finance Bank | 9 | 9.50 | 456 Days to less than 2 Years |
| Jana Small Finance Bank | 8.60 | 920 | 1 year − 2 years |
| Equitas Small Finance Bank | 8.30 | 8.90 | 2 years 1 day to 3 years |
| Ujjivan Small Finance Bank | 8.30 | 8.80 | 799 days |
| AU Small Finance Bank | 8.10 | 8.60 | 15 Months 1 Day to 18 Months |
| ESAF Small Finance Bank | 8.25 | 8.75 |
|
| Suryoday Small Finance Bank | 8.75 | 9.25 | Above 2 Years to 3 Years |
Best FD Rates offered by NBFCs and other financial institutes
| NBFCs/ Financial Institutes | FD Interest Rate (%) | Deposit Tenure | ||
| Regular Citizen | Senior Citizen | |||
| Bajaj FINSERV | 8.35 | 8.65 | 36 – 60 months | |
| PNB Housing Finance | 8.45 | – | 44 months | |
| LIC Housing Finance | 7.95 | 8.20 | 3 years 5 years |
|
| Mahindra Finance | 8.45 | 8.70 |
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| Shriram Transport Finance Co Ltd. | 11.13 | – | 60 months | |
As you can notice, compared to commercial banks, small finance banks and NBFCs offer a higher interest rate on FD accounts, and that too on long deposit tenure.
However, the concern of investing in company FDs still remains because they carry a certain degree of risk and are also not regulated by the RBI. The chances of losing money is higher in case of a failure on part of the company.
Fixed deposits offered by banks and small finance banks are much safer and can be trusted with hard earned money as they are strictly regulated by RBI and the government.
Fixed Deposit Return
Returns from fixed deposits vary from cumulative option to non-cumulative option. Non-cumulative option, in which interest is paid out over quarterly, half-yearly, or yearly intervals, is calculated using the simple interest formula. Whereas, cumulative FDs are compounded at a regular interval (quarterly, half-yearly or yearly) and are added back to the principal.
Using the FD return calculator, you can calculate your actual interest income of both the FD types.
Final Words
The article lists all the best fixed deposit schemes in 2019 offered by banks and different financial institutes. Before investing your hard-earned money, read the eligibility and terms & conditions to get a clear view of the financial instrument.
Note: Interest Rates shown in different tables are applicable from 1st Sept. 2019 for regular fixed deposits.
