Aspirants with high financial goals prefer to invest with some guarantee. For this, the most preferred investment plan is Fixed Deposit. A Fixed Deposit is a type of term deposit with a high-Interest rate as compared to a regular savings account.
High returns and low-risk are the features which make an FD a well-favoured investment option in India. FD interest rates in India are determined over the entire maturity period and is generally considered a very safe investment.
Interest rates differ not just from the public to private banks but each of the banks under these groups can also provide FD at different interest rates. The maturity period is another factor that causes variation in FD interest rates in India. Higher the tenure of your FD, the higher will be the return.
How to Calculate FD interest?
Calculating FD interest is a laborious process. However, once you know the factors on which your investment depends, the process becomes much easier and you will find the answer to your question ‘how to calculate FD interest?’. Or research to get FD interest rates in India. Factors on which your FD interest amount depends:
- Deposit or Actual Amount: Higher Deposit amount means higher interest.
- Deposit Tenor: An investor can choose any fixed deposit term, ranging from 7 days to 10 years. He/she may also invest in multiple fixed deposits with a single bank or a different bank for a different term. This way the investor can invest in a fixed deposit for a term that matches his / her liquidity and investment objective. FD interest rates in India depends on the tenor chosen. Longer tenor results in higher interest.
- Rate of interest: It goes without saying that a higher percentage of FD interest rates in India yields greater interest amount.
When compared to savings account deposits, the interest rates offered on fixed deposits are much higher. Also, the interest rate is higher for a longer tenure of investment. But one must keep in mind that the principal amount is allowed as a deduction ( up to Rs 1.5 lakhs under Sec. 80C) and the interest earned is taxable. - Type of deposit (Cumulative or Non-Cumulative): Compared to a non-cumulative deposit, Cumulative FDs give better FD interest rates in India.
- Frequency of interest: Interest can be compounded monthly, quarterly, half-yearly or annually with Bajaj Finance Fixed Deposits. But please be aware, frequent compounding of interest rates can decrease your interest amount.
- Type of customer (New customer, Senior citizen or existing customer): The rate of interest for a senior citizen usually ranges 0.25% to 0.75% higher than the normal rate of interest. This excess interest is called a preferential interest rate. Also, the age to be considered for determining a senior citizen differs from one bank to another bank. Few of them consider 60 years while others consider 55 years or so.
To calculate and thus find the best FD rates in 2020, one must utilise Bajaj Finance FD calculator. This fixed deposit calculator helps an investor estimate the maturity amount and the wealth to be gained meeting his financial goals. The more the deposit amount for a longer period, the higher will be the applicable rate of interest and interest earned due to the power of compounding.
Here is a compilation of the best FD rates 2020 offered by various banks in India:
Best Fixed Deposit interest rates in India for senior citizens by Small Finance Banks
| Name of the Bank | Rate of Interest (p.a.) | Tenure |
| Fincare Small Finance Bank | 9.50% | 24 months 1 day to 36 months |
| Suryoday Small Finance Bank | 9.25% | 5 years |
| Jana Small Finance Bank | 9.10% | 499 days |
| Utkarsh Small Finance Bank | 9.00% | 456 Days to less than 2 years |
| North East Small Finance Bank | 9.00% | 555 days |
The following table depicts the best FD rates 2020 conditioned to the customer type of a senior citizen and lenders being the commercial banks.
Best Fixed Deposit rates for senior citizens by Top Commercial Banks
| Name of the Bank | 1 year | 3years | 5 years |
| Lakshmi Vilas Bank | 8.10% | 8.10% | 7.85% |
| RBL Bank | 7.90% | 7.70% | 7.85% |
| DCB Bank | 7.50% | 8.20% | 8.00% |
| YES Bank | 7.75% | 7.75% | 7.75% |
| Bandhan Bank | 7.70% | 7.50% | 7.50% |
| Axis Bank | 7.05% | 7.00% | 7.00% |
| IDFC First Bank | 7.75% | 7.75% | 7.75% |
| IndusInd Bank | 7.15% | 7.25% | 7.25% |
| Federal Bank | 7.00% | 7.10% | 7.10% |
| Canara Bank | 6.90% | 6.75% | 6.75% |
| HDFC Bank | 6.80% | 6.90% | 6.80% |
| ICICI Bank | 6.70% | 6.90% | 6.80% |
| Bank of Baroda | 6.50% | 6.50% | 6.75% |
| Oriental Bank of Commerce (OBC) | 6.75% | 6.75% | 6.75% |
| State Bank of India (SBI) | 6.20% | 6.20% | 6.20% |
Best FD rates 2020 for the normal investors
| Name | Tenure of 1 year | Tenure of 3 years | Tenure of 5 years |
| Bajaj Finance | 7.40% | 7.50% | 7.60% |
| SBI | 5.25% | 6.00% | 6.25% |
| ICICI | 4.00% | 6.5% | 6.5% |
| Citi Bank | 3% | 5% | 5% |
| Axis Bank | 3.5% | 6.7% | 6.7% |
| HDFC Bank | 3.5% | 6% | 6% |
| Canara Bank | 4.20% | 6.20% | 6% |
| HDFC Bank | 3.5% | 6% | 6% |
| IDFC First Bank | 4% | 4.5% | 4.6% |
With CRISIL’s FAAA/Stable rating and ICRA’s MAAA (stable) rating, your investments in Bajaj Finance FDs are never at risk.
Apart from the highest FD interest rates in India as shown in the table, Bajaj Finance FDs offer you numerous benefits such as online application of FDs, the facility of loan against fixed deposits, premature withdrawal etc.
You can start investing in Bajaj Finance FDs with a minimum deposit of Rs. 25,000 and enjoy interest rates up to 7.85%.
Also, you can utilise the Bajaj Finance FD Calculator to easily comprehend which banks or NBFCs are providing the best interest rate as per your choice of tenure and thus compare and choose the best.
Aspirants with high financial goals prefer to invest with some guarantee. For this, the most preferred investment plan is Fixed Deposit. Factors on which your FD interest amount depends:
- Deposit or Actual Amount: Higher Deposit amount means higher interest.
- Deposit Tenor: An investor can choose any fixed deposit term, ranging from 7 days to 10 years. Longer tenor results in higher interest.
- Rate of interest: It goes without saying that a higher percentage of FD interest rates in India yields greater interest amount.
- Type of deposit (Cumulative or Non-Cumulative): Compared to a non-cumulative deposit, Cumulative FDs give better FD interest rates in India.
- Frequency of interest: Interest can be compounded monthly, quarterly, half-yearly or annually with Bajaj Finance Fixed Deposits. But please be aware, frequent compounding of interest rates can decrease your interest amount.
- Type of customer (New customer, Senior citizen or existing customer): The rate of interest for a senior citizen usually ranges 0.25% to 0.75% higher than the normal rate of interest.
Hope this article solves all your queries and answers how to calculate FD interest for better management of your finances.
