Fixed Deposit Rates 2020

Posted by  Fintra Editor , June 2, 2018

Fixed Deposit Rates 2020

Fixed deposits commonly known as FD is an investment tool offered by banks to earn higher interest rates than what one gets in a regular savings account, till the FD matures. It is also referred to as time deposit and term deposit many times.

In simple words, it is the interest amount that the bank gives to you on the amount invested for a fixed duration of time (that can vary from 7 days to 10 years). One thing to be taken care of is that you cannot withdraw money before maturity, unlike a savings deposit without paying a penalty.

The FD rates offered by different banks vary according to the duration of the time and different bank policies such as  SBI fixed deposit interest rates vary from 5.75% to 6.75% over a period of 7 days – 10 years. The bank interest rates being offered by DBS Bank, ICICI Bank, IDFC Bank, Kotak Mahindra, and Yes Bank are among the best for opening a fixed deposit.

Here’s a table showing the best interest rates offered by different banks-

Bank

Tenure

Interest Rates

State Bank of India

7 Days – 10 Years

5.75% - 6.75%

DBS Bank

7 Days – 10 Years

4% - 7.2%

Kotak Mahindra Bank

7 Days – 10 Years

3.5% - 6.85%

ICICI Bank

7 Days – 10 Years

4% - 6.75%

Citi Bank

7 Days – 10 Years

3% - 5.25%

Yes Bank

7 Days – 10 Years

5% - 7%

IDFC Bank

7 Days – 10 Years

4% - 7.5%

IndusInd Bank

7 Days – 10 Years

3.5% - 7%

Deutsche Bank

7 Days – 10 Years

4% - 7.5%

Canara Bank

7 Days – 10 Years

4.2% - 6%

Bank of India

7 Days – 10 Years

5.25% - 6.25%

Bank of Baroda

7 Days – 10 Years

4.25% - 6.6%

Central Bank of India

7 Days – 10 Years

4.75% - 6.5%

*The fixed deposit rates are subject to change without any prior notice

Advantages of Fixed deposits

Disadvantages of Fixed Deposits

 

What you must be looking into before buying an FD? Which bank to choose for FD?

Return Comparison of Fixed Deposits vs Other Investment Options
Investing in fixed deposits is considered to be a safer option than available investing options like Post Office schemes, mutual funds, etc. But let’s compare the returns of fixed deposits and Gold in comparison to the type of funds people usually invest in. People usually invest their money in ELSS, Debt, Equity, and Balanced Funds.

 

Asset Class

Average 5 Year return (Annualised)

Value of 1 Lakh after 5 Years

Fixed Deposit (after tax)

 6.5%

 1.37

 ELSS Return

 20.47%

2.54 

Debt Funds Return

 14.42%

1.96 

Equity Funds Return

 27.6%

 3.38

Balanced Fund Return

 16.24%

 2.12

Gold Return

 -0.98%

 0.95

*Average is computed here using the top 30 funds in each category in Jan 2018

Here you can easily see that mutual fund has outperformed every other asset class with equity fund giving a whopping 27% approx. annually for the last five years. Even low-risk debt funds have almost double returns as compared to deposits. Thus, we can say that Mutual Funds are indeed a sustainable way to create wealth.

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