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.
Hi,
I would like to put 5000000 inr in fd for 10 years,quarterly how much interest i can get from bank.
how much TDS i will hv to pay – i hv a fixed deposit in kotak bank NRE account of worth 18 lacs rupees for 390 days.
State Bank Of Mysore is offering interest rate of 9% for 1 to 3 years.
Which bank is best for deposit money now in karnatak
nsc or fd which is a better option?
I want to invest money for my 8 yr and 2yr old children.
plz suggest me
Hello, I also like to do FD suggest me Good Bank for the same
hi,just now i started working outside india and wanted to know what is the best way to invest my money with good returns as well as interest,reply me asap as am highly confused,thanks
Hi,
My father is retiring next year and he will be getting an amount of 20 lakhs after retirement. Can you suggest any plan of investment to him which will help him to get around 12-15K /month with those 20 lakhs. He want the monthly income to start within 1-2 months of his retirement
I think a senior citizen FD is probably a good bet for him since it is safe and convenient.
Visit the website once and please free to call on 8692966666 for more details. You can also call on toll free number 1800 3000 3100.
Thank You !
hi
mail me any change in int rates
idbi bank offering9.40 for400days fd
Hi,
I want to open a MIS(monthly interest scheme) for 10 lack for 3 years in State bank of india.
can you pls let me know the monthly interest i”ll get……….!
I dont think any public sector Bank accepts deposits on which interest is paid monthly.
There is proposal to do so.As far as I understand YES BANK pays monthly interest on fixed Deposits at interest of about 9%.
Dear sir,
I am dreawing salary 7 lacs /anum. for tax saving purpose I want to save 3000/month – 5yrs fixed deposit in “Karur Vysya Bank”.Is this correct way bcoz i have no knowledge about tax saving.
For tax saving,which option is better i.e LIC,mutval funds,FD,–etc Pls clarify
This article is a bit out dated and there a few changes to the interest rates offered by the banks since the article is posted.
Compilation of latest fixed deposit interest rates offered by various banks is available at – http://www.coziie.com/fixed-deposits/banks-paying-high-interest-rates-india. May this is helpful to those who are looking for high interest rate fixed deposits.
Allahabad Bank is better for deposit. I like Dena Bank but i think, it is private bank, right?
Do banks in India pay interest on Fixed Term Deposit compounded monthly or quaterly
Interest is compounded quarterly.
Thank You Nailesh.Very valuable piece of info.I dont know why the Bank does not give publicity to such news.With more publicity the Bank will collect more Deposits.Or perhaps the does not want much funds under this scheme
Hi,
Yes Bank offers an account with an AQB of 25000 wherein money above 25000 is auto transferred to an interest account and the rate of interest is lined to the FD rate for 12 months- 9 % . Interest is paid out monthly and the money is not blocked nor is there a prepayment penalty. So it is similar to a savings account with an interest rate of 9% for the days money above 25000 remains in the account.
Sir What is rate interest of Fixed deposit As on 1st April 2013 if Increase any basic % what ? Plz tel me
NHB Savriddhi FD – GOOD for investment for following reasons
1.National Housing Bank is owned 100% by RBI
2.Investment up to Rs 1 Lac is exempt from Tax under Sec 80C
3.Rate of Interest 9.25%(9.85% for Senior Citizens)
4. Lock in Period 5 Years
5.Under non cumulative option interest to be paid once in Half Year or Annual
Furthur details at http://www.nhb.org.in