Updated: May 24 2013
After I did the post on Indus Ind Bank offering 9.5% for 400 days, I received emails from readers Suresh Jain, and Vijay Dongre to tell me about a couple of other banks that are also offering good rates, so I thought I should do a small post to inform other readers about these banks that are offering high interest rates on fixed deposits.
I’ve also added to the information emailed to me by compiling a list of bank fixed deposits that are offering more than 9% right now.
Although I’m sure I would’ve missed some banks, I think this list constitutes some of the best fixed deposit rates that are currently being offered by Indian banks. If you know of any banks outside this list then please leave a comment, and I’ll update the post with your suggestions.
Some of you have asked about banks because they are safe, but there are plenty of other safe places to invest your money in India too, and you can opt for one of those instead of a bank. (Read: List of 10 Safe Investments in India)
| S.No. | Bank | Tenure | Interest Rate |
|---|---|---|---|
| 1 | Tamil Nadu Mercantile Bank | 20 month 20 days | 9.50% |
| 2 | Lakshmi Vilas Bank | 1 year | 9.50% |
| 3 | Karur Vysya Bank | 2 years to 3 years | 9.50% |
| 4 | City Union Bank | 2 – 5 years | 9.25% |
| 5 | Yes Bank | 15 months | 9.25% |
| 6 | Punjab and Sind Bank | 500 days | 9.25% |
| 7 | Central Bank of India | 555 days | 9.25% |
| 8 | Dena Bank | 750 days | 9.25% |
| 9 | Allahabad Bank | 1 year to less than 2 years | 9.15% |
| 10 | South Indian Bank | 1 – 3 years | 9.00% |
| 11 | Bank of India | 1 year to 8 years | 9.00% |
| 12 | Oriental Bank of Commerce | 1 years to 10 years | 9.00% |
| 13 | Canara Bank | 1 year to 2 years | 9.00% |
| 14 | State Bank of Patiala | Â 555 days | 9.00% |
| 15 | Indian Bank | 9 months to less than 3 years | 9.00% |
| 16 | Kotak Bank | 700 days | 9.00% |
| 17 | Andhra Bank | Â 1 year to 10 years | 9.00% |
| 18 | Corporation Bank | 1 year to 5 years | 9.00% |
| 19 | IDBI Bank | 500 days to 5 years | 9.00% |
| 20 | Indian Overseas Bank | 1Â – 5 years | 9.00% |
| 21 | ICICI Bank | 390 days to 2 years | 9.00% |
| 22 | Syndicate Bank | 1 year | 9.00% |
| 23 | Axis Bank | 15 months to less than 5 years | 8.75% |
| 24 | Dhanalaxmi Bank | 200 days | 8.75% |
| 25 | State Bank of Travancore | 1 year to 1000 days | 8.75% |
| 26 | Bank of Baroda | 1 year | 8.60% |
| 27 | J&K Bank | 1 year – 10 years | 8.50% |
| 28 | Vijaya Bank | 1 year to less than 3 years | % |
| 29 | Karnataka Bank | 1 year to 3 years | % |
| 30 | Federal Bank | 1 – 3 years | % |
As you can see these are some great rates, and the good news is that the tax saving fixed deposits have also got some great rates these days. If you haven’t done your tax saving investments yet then you can take advantage of those rates.
Fixed deposits aren’t the only thing that help you save tax – there are plenty of other instruments that help save tax and you can visit this page to understand the nuances of Section 80C tax saving investments in an easy to understand graphic.
Update: There was an error in the post where I said HDFC is offering 9.50%, but a couple of readers emailed me to let me know that the higher rate was for senior citizens only. I have corrected that, and apologize for the error. Thank you to Anil Kumar Kapila, and Rakesh Jain for their emails. Also, the list of senior citizen’s bank interest deposits didn’t include quite a few names in the above table which I have done now. Update 2: Added ICICI Bank’s 990 days interest rate for senior citizens. Update 3: Added Indian Bank on the comment of P.T Palani Update 4: Removed the list of senior citizens interest rates from this post because I’m finding it hard to keep the list current.
Uco bank is offering 9.10% rate of interest for one year deposit.
Thanks& regards
kuldeep singh
vijaya bank now gives 9.75 % for senior citizen
and yes bank gives 10 % for senior citizen for 15 months
so can u please tell me which is better ..??
Hi Nikita,
Thanks for this post. It is really very helpful. I have a query for you, can you please tell me whats the Interest rate given by UCO bank? I want to fix deposit a sum for around 5 years.
Thanks in advance,
Waiting for your reply.
You want 8% annual return.
Here is one tax free bond and you can get 7.90% on annual basis.
For details you may visit
http://www.investitude.co.in/
http://www.onemint.com/2012/12/21/iifcl-tax-free-bonds/
This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR.
Mr. Shiv Kukreja writes regularly for OneMint and he has written many articles on savings and finance planning in OneMint.
Hi buddy,
This is a very informational post, thank you. 🙂
I had a doubt:
Suppose I opened an FD of total amount of 1 crore with Corporation Bank. Now, assume that they are giving 10% interest yearly. Now, after an year, Corporation Bank changes its interest rates to 8% – my doubt is, I will still be getting 10% yearly interest from Corporation Bank because when it was 10% I signed up for the fixed deposit, right?
Let me know buddy, thanks!
Yes, You are right.
You will get 10% interest for the period of FD, irrespective of change of interest rate during FD period.
Thanks for the clarification Umesh!
Hello Umesh,
Thank you for answering my question.
I had an other one – all the fixed deposits have maximum of 10 year maturity period. Do we have maturity period of more than 10 years? Like perhaps 20 or more?
IMO, no.
Banks do not have maturity period of more than 10 years.
But why want a maturity period of longer duration.
Banks are smart enough and they do not pay higher interest on longer duration FDs.
Wow, okay.
I was just thinking about more maturity period because I thought it would be good to have FDs as a good monthly income scheme plan for at least 20 years or so (well, I can forget about 20 years now…).
Are there any bonds or something which offer 8% guaranteed annual return for more than 20 years or so?
Oh god I am so confused with all this finance world, childhood was much easier lol. 😀 However, I thank you very much for answering my queries buddy. 🙂
Hey ,
My mom wanted to invest her savings in FD (say about 50k) , she is a house maker , there is no other source of income so she wants to use/withdraw the intrest every month for the expenses.Can anyone assist me which bank is suitable for her to invest her savings and wat should she opt for the long term deposits or the short terms ??
Thanks!
Please look at the above table, and select 3 or 4 banks that have a high interest rate and are conveniently located from your mom and then you can open a FD in one of those banks.
Hi, I am NRI I would like to deposit some funds in India can anyone recommend which banks are now offering the highest fixed deposit rates at present moment for long term deposits minimum 5-7 years. Thank you for your assistance.
hi,
in ICICI bank provides a PF account in latest will u pls update that details.
I heared that 8.8% is given. every month u should pay 500(rural), 1500(urban) people due to the period of 180 days(6months). before 6 months u can’t draw the money. after 6 months only possible. after that, how much amount is there in u r a/c on that amount only 8.8% is appilicable and one more thing is bank provided saving a/c in zero balance. in this 180 days u should deposit min 500 – max. unlimit . and if u have interest to continue is also possible.
thanks and i know some details only so pls send the clear details of that pf a/c.
Are you excluding cooperative banks though there a scheduled cooperative bank? Bharath Bank offers 10.30% for 333 days
Yes, this list doesn’t include co-operative banks.
But you can include ‘scheduled cooperative banks’ though not all cooperative banks
Hi,
Please let me know if any specific FD’s for childrens
Thanks
Ravi
this article is very helpful… i m planning some fd investments and this helped tremendously… thanks.
Hi Manshu,
I don’t know the differance between bank and DHFL, I think it is housing finance, when I am checking for best FD interest rates, one of my friend suggested about DHFL and he said it is safe in investing DHFL also. When I checked in google I got this page. What do you think, FD in DHFL is not safe ? ? Do you have any idea about other best FD rates which will give more than bank FDs like DHFL ?
When compare to above all DHFL is having the best FD interest rates. Please go through the below pages and update the post if you feel it is worth.
http://www.dhfl.com/fixed-deposits/aashray-deposit-365-days/
http://www.dhfl.com/fixed-deposits/aashray-deposit-400-days/
http://www.dhfl.com/fixed-deposits/swayamsidha-deposit/
http://www.dhfl.com/fixed-deposits/aashray-deposit-plus/
That’s not a bank, this page is only for bank interest rates.
I have a request – when or wherever a rate of intererst is shown Pl. also mention the date – and/or time of validity. So I will know whether it is valid for today or not. and increase the column width so with less scolling I can see more.
If an option is also kept sorting by banks name or by rate would be more beneficial.
Pl do the needful.
thanks
Dear Sir,
The city union bank gives 10% for 2 years for senior citizens from 1st Aug 1012. Your table does not explicitly mention this
Sivam
Dear,
I want to take a FD for 2 lacs.
Which bank is better for this and how much interest will be given?
Hi,
There is one type of FD in SBH where you amount will be doubled in 7 years 3 months
Thanks
Ravi Kumar .K.
Dear,
Can you plz let me know how much interest is given by HSBC bank for a saving account.
Dear,
Can you plz let me know the interest rate of sbi for saving account.
I am getting 2% interest in every 6 months.
It is 4% per year.
Thanks Manshu for considering my suggestion. United Bank of India is also offering 9.25% interest on 1 to 5 years Fixed Deposit. You may include it in your list.
Hi Manshu,
Kindly include Oriental Bank of Commerce in your list which is giving 9.25% interest on 12-23 months fixed deposit.
Thank you for the suggestion Jay – I have included OBC at the bottom of the list. Next time I update the list, I’ll sort it to descending order.