Best fixed deposit scheme in India 2019

fixed deposit

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
  • 1 year
  • 444 days
  • 555 days
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
  • 1 year 25 days < 13 months
  • 13 months < 14 months
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
  • 1 year 1 day – 2 years
  • 2 years 1 day – 5 years

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
  • 365 days to 545 days
  • 547 days to 727 days
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
  • 48 months
  • 60 months
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.