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.
Lakshmi Vilas Bank offers 10.5% for 1yr . Rates are attractive for shorter tenures as well.
Checkout on their website for more information.
Dear Sir,
I wish to invest s.5 lakh for a period of 6 months. Plz let me know in which Nationalised bank shud i despost
kumbakonam mutual benefit fund is offering 12% for limited period offer. They are reliable services and can yeild good results
Dear sir,
Let me know K.M.B offer good services and whether it is reliable,.please give me their address in Mylapore or tambaram (Chennai)
Hi Manshu,
If you can guide me that presently which bank is paying the higest interest rates for the Fixed Deposit for the senior citizens.
Sir, I want to know that What is the meaning of 555 /590/ 999 days of FD ?
how much interest I will get if I invest Rs 100000.o0 @9.25% for 590 days ?
Hardev,
The days are just the maturity. So, 555, will be one year plus 190 days, so about one and a half years. The interest rate is always per year. so you will get paid 9.25% per year on your money.
Excellent compilation. One suggestion though – If you had ordered/categorized the table by “tenure” it would have given a good comparison. Since some readers might be interested only in short tenures and would like to compare rates on short tenures between banks
Thanks for your input Vish – I had created this list a long time ago, and looks like it’s dated as well. I’ll update it and sort it as well. Thank you!
Dear Sir,
We are providibg best Fixed Deposit rate,& our rate is For 480 days is 9.60% & for senior citizen is 10.60%
thanks
Sandeep kumar
M#9899934750
Which bank?
Dear Sir,
We are providibg best Fixed Deposit rate,& our rate is For 480 days is 9.60% & for senior citizen is 10.60%
thanks
Sandeep kumar
M#9899934750
Yes Sandeep – I will include Yes Bank in this comparison in a day or two – I just haven’t gotten around to updating the list, and when I do update the list – Yes Bank will be there.
Dear Manshu,
i am banker and I want sourced fixed deposit and a/c also.
so please if you have some customer for tht same pls send me his/her no.
Thanks
Sandeep kumar
M#9899934750
I’m sorry Sandeep – this is just a blog where people come to source information – I don’t have any customers so I’d recommend not building any hopes of building a clientele from here.
DEAR SIR
PLEASE ADVICE ME IN BANK FD IN FUTURE RATE MAY BE GO HIGH SO I INVEST SORT TIME AND LONG TIME WHICH IS THE BEST TIME TO DEPOSIT 555 DAYA AND 1001 DAYS AND ANEY YEAR PLEASE SPECIFY PL. GIVE ANSWER MY E-MAILID
Don’t know about that. Sorry.
Dear Sir,
Small Industries Development Bank of India (SIDBI), a financial institution, offers 9.50% p.a. on quarterly compounding basis for 12 months period on fixed deposits. ITs a AAA rated institute and has been rated by CARE rating agency.
updated fixed deposit rates are available at http://allinfoindia.com/Fixed%20Deposit.htm with detail of tax deduction – Good post should read
SIR
i want to know the interest rate of premature F.D.IT IS FOR 1000DAYS11%
i witdraw in2years 6 month. it is my husband name and ofter the death of my husband bank official said that there is not any deduion so i think i get them and reinvest bec interest rates are high they calculate at the rate of9%pl advice me it is right or wrong
bank is SBI of india
Madam – if the bank is not charging you any penalty for closing your earlier FD and re-opening the new one at a higher rate then that’s a good option for you. I’m not sure if I understood the question correctly, but if they are willing to do this then you should take advantage of the higher interest rate.
City Union bank is offering 10.4% and 10.6% for general and senior citizen respectively for 400 days with effect from 8th May 2011.
Once again very useful information, Thank you.
pl keep me updated for best interest rates for sr. citizen
State Bank Of Bikaner and Jaipur – Interest Rates of upto 9.75% for deposits between 5 and 10 years. 0.5% extra for Senior Citizens.
Thanks Indranil. I plan to update the post in a few days – will include this then.
Thanks for providing up to date information regarding maximum rate of interest on fixed deposits, In this regards i will like to add that State Bank of Patiala is giving 10.25% for Senior Citizens.
Thanks Manshu for the suggestion . I guess I can handle some risk, as you rightly pointed out being adventurous is the key ! Is there any good option to save money in India from abroad ? As far as I know, all the NRI savings schemes offer a very poor rate, are there other investment options ?
I mean I’m not recommending that you be adventurous, just saying that you have to be cognizant of risk.
You can open a NRO account and then get the same interest rate as resident accounts. You can also open a demat account from abroad or invest in mutual funds as a NRI.
http://www.onemint.com/2011/03/29/nro-and-nre-account-how-to-open-it-when-youre-abroad/
Tamil Nadu Mercantile bank is offering 10.25% for 555 days .
Thanks I’ll update the post.
Dear Sir,
I must first appreciate your wonderful efforts on helping people make better financial decisions. I need a little advise here, I have INR 10,000 with me right now and what can be a good investment option with the highest return possible ? I can invest it for a very long time period as I do not need the money right now but for the future. I am just a student so I’m quite naive in this regard, kindly help.
Many thanks ,
Dhivyan.
Hi Dhivyan: Talking about returns without talking about risk is not a wise thing to do. There are things that offer high return like shares but then there is high risk as well. You need to think about how much risk can you handle – will you be okay if you lose half of this money in shares? (It has happened many times before).
If you’re just starting out then I’d recommend taking advantage of the current high fixed deposit interest rates and study more about the financial markets, make yourself familiar with various options and then be more adventurous.
Karur Vysya bank reduced the interest interest rate from 10.25% to 9.5% from 18th April 2011
Which is the bank which offers maximum interest rate for 180 days to below 366 days tenure?
Thanks Ganesh – I will update the post.