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 Guys,
Please research before you are putting money into some small time operators like kumbakonam mutual benefit fund – I hope they will not run away with your money just like UTI etc done couple of years back. So don’t just look for the highest % interest while depositting your hard earned money.
Regards,
Regi
CityUnionBank (based at Kumbakonam since 1921) is highly reliable than modern ICICI and CITI banks. Right from my grand father days they used to put FD and get returns. Never seen failed even once since 1970s.. FYI
Dear Anshu,
followings are MAX. TERM DEPOSIT RATES as on 09-Aug-11 of 34 banks.
Please write FRESH article on this subject. This is since people are advising that for next 1 year investment in Bank FD will give better return than investment in GOLD or M.F.
Tamil Nadu Mercantile Bank 10.50
cityunionbank.com 10.40
FEDERAL BANK 10.00
Karur Vysya Bank 10.00
South Indian Bank 10.00
Karnataka Bank 9.75
State Bank of Patiala 9.75
Syndicate Bank 9.75
Dena Bank 9.60
Punjab and Sind Bank 9.55
Canara Bank 9.50
Corporation Bank 9.50
IDBI Bank 9.50
Indus Ind Bank 9.50
J&K Bank 9.50
Kotak Bank 9.50
State Bank of Travancore 9.50
Andhra Bank 9.40
Central Bank of India9.40
PNB 9.40
State Bank of Hyderabad 9.40
Union Bank of India 9.40
Bank of Baroda 9.35
Vijaya Bank 9.35
Axis Bank 9.25
Bank of India 9.25
HDFC Bank 9.25
ICICI Bank 9.25
Indian Bank 9.25
Indian Overseas Bank 9.25
State Bank of India 9.25
UCO Bank 9.25
Bank of Maharashtra 9.00
Allahabad Bank 8.75
Federal bank is offering 10% on 333days deposits
I want deposit the amount of Rs.5 Lac for FDR .So pl tell me the maximum rate of interest in banks.
state bank of Patiala is also providing 9.75% 555 days..
and trend suggest they gonna revise is very soon for depositor benefit.
Manshu, these rates look attractive, but the banks these days demand that we have an SB a/c to be even eligible to apply for these FDs? Is this mandatory ? For eg: Say I have an a/c with ICICI bank, BoB doesnt accept my application for opening an FD with them – they need an SB A/c. Do enlighten us.. Would appreciate if you can drop in a reply liner to my Email ID too.
thx
Kalyani
Kalyani, No, this is not mandatory at all, and I have a full post on this with several people commenting and sharing their experience of opening a FD without a SB account. Do give it a look here.
http://www.onemint.com/2011/05/19/can-i-open-a-fixed-deposit-without-opening-a-savings-account/
Dear Manshu,
followings are MAX. TERM DEPOSIT RATES as on 09-Aug-11 of 34 banks.
Please write FRESH article on this subject. This is since people are advising that for next 1 year investment in Bank FD will give better return than investment in GOLD or M.F.
Tamil Nadu Mercantile Bank 10.50
cityunionbank.com 10.40
FEDERAL BANK 10.00
Karur Vysya Bank 10.00
South Indian Bank 10.00
Karnataka Bank 9.75
State Bank of Patiala 9.75
Syndicate Bank 9.75
Dena Bank 9.60
Punjab and Sind Bank 9.55
Canara Bank 9.50
Corporation Bank 9.50
IDBI Bank 9.50
Indus Ind Bank 9.50
J&K Bank 9.50
Kotak Bank 9.50
State Bank of Travancore 9.50
Andhra Bank 9.40
Central Bank of India9.40
PNB 9.40
State Bank of Hyderabad 9.40
Union Bank of India 9.40
Bank of Baroda 9.35
Vijaya Bank 9.35
Axis Bank 9.25
Bank of India 9.25
HDFC Bank 9.25
ICICI Bank 9.25
Indian Bank 9.25
Indian Overseas Bank 9.25
State Bank of India 9.25
UCO Bank 9.25
Bank of Maharashtra 9.00
Allahabad Bank 8.75
Dear Kartavi – Thanks for taking the trouble to collect this data and then sharing it here. Please give me some time, and I will create a fresh post. Most probably on Saturday.
Manshu, we are awaiting your new post.
Please also keep in mind following points:
In India, What General (Middle Class) ppl should do ?
• Interest rates on Bank Deposits are around 10% .
• Gold Prices are rising like any thing. one article says that it will rise for 2 to 3 years and thereafter the GOLD BUBBLE may burst and may show bottom. So, long term investor should avoid GOLD.
• Some News Paper articles said that this year share market (and hence Mutual Funds) will not give better return than Prevailing Fixed Deposits ( around 10% )
A small investor cry out … Aare bhai…. Kare to Kya kare ? !!
1. Should one ( in India) Sell out all our M.Funds / Share holdings and invest in Bank Fixed deposits.
2. Should one go for a SIP for Gold ETF (purchasing fixed units every month) for 10 Years for a good purpose (say child marriage or mere investment).
3. Should one buy a house (for investment) ?
My humble request to address all above points in your next post.
With regards.
Kartavi.
Hi Kartavi,
I had updated the post last weekend, and I thought I had replied to your earlier comment as well, but if I have not then I apologize. If you look at this list then that’s the updated one. I don’t think anything drastic has happened in the last few days that hasn’t happened over and over again in the last decade, if not longer. There is no reason to change the strategy of owning a diversified portfolio and sticking to it for the long term. Chasing asset classes that have given good returns in the past won’t do much good. I did write a post about a week ago about the current uncertainty. You may want to read that, and I will write one addressing all the things you are saying in a new post as well.
This is the link to the old post.
http://www.onemint.com/2011/08/09/thoughts-on-the-current-uncertainty/
You missed City Union Bank (CUB), headquartered in Kumbakonam, TN.
For a 400 days FD, they offer 10.4% (10.6% for senior citizens).
See http://cityunionbank.com/home/interest.htm
Thank you Dr. Jarayaraman – I’ll update the list with their name next time.
Please note SOUTH INDIAN BANK , for deposits between 1-2 years the interest rate is 9.75%, interest payable quarterly
I’m thinking to invest my money rs. 90,00,000 lakhs in SBI fixed deposit for more than 5years, could you plz.tell me what interest will i get monthly on this and also give other best plans for big
returns on this money ..
Thanks,
Heart b.
Dear sirs,
I am from East Africa formerly did my studied in India .Can I benefit from Fixed Deposit accounts .
could anyone give me advice on this.
Thanks
Awet
Accordingly to my views, if you are Indian Origin and then moved to East Africa, you would be called Non-Resident Indian and can have your Non-Resident Ordinary Account or Non-Resident External Account and accordingly you can have Fixed Deposits. However, if you are not Indian Origin, then you can not park fund in Fixed Deposit in India. Though you can have an NRO account to operate for your expenses when you visit here and the balance amount can be repatriated provided the money was received through banking channel only. I hope this helps.
pl. update me on the same
I am from the US and just now looking into possible Fixed Deposit accounts or just semi safe investing plan that will have a decent return. Savings accounts in the US are under 2%, could anyone give me advice on investing in India.
Thanks
Tashina
I want to get atleast a fixed amount of return for child’s education. I wish to deposit a amount in safe but secured institution. For monthly receipt of 3500 ,how much amount I have to deposit for four years.
Any body can help me.
If you want a secure place which you should given that this is for your child’s education you should invest the money in a bank fixed deposit. Some of them are giving close to 10% right now, and those are pretty good returns with very little risk.
Here are some banks that offer high returns right now.
http://www.onemint.com/2011/01/14/banks-with-high-interest-rates-on-fixed-deposits/
Hi,
Would you suggest fixed deposits by companies ?
for example :
United Spirits _ 11% on tenure of 12 months
Mahindra Finance_10% tenure 24 mnth (CRISIL FAAA)
Elder Pharma _10.5% tenure 3 yrs
STFC_10.75% tenure 3 yrs (CRISIL FAA+)
Sujeet.
Hi Sujeet,
In the past when I’ve written reviews for these I’ve said that about 5% of your total portfolio is enough in these deposits as it doesn’t expose you too much to just one company, and can help you juice up yields as well.
You missed out on City Union Bank which is offering 10.4% on 400 days deposit and Lakshmi Vilas Bank offering 10.5% on deposits less than 2 years. TAICO(Tamil Nadu Industrial Cooperative) Bank is offering 11.5% for senior citizens for a period of deposit upto 5 years.
Thank you for pointing those Nagarajan, I will update the post with these banks.
Mogaveera Co-Op Bank is offering 10.25% for normal customers and 10.50% for senior citizens. These are for a tenure of 13-18 months. Excelent yied of around 10.93% and 11.21% respectively.
They do have some Tax benifit scheem.
These guys are in the market since 1946 and are doing well.
I see that the bank’s chairman was arrested about 7 years ago, and it was fined in 2006 for lending to directors.
The bank has put so many co-oprative banks and c0-0perative societies into trouble some time in late ninties. I do not think it is advisable to park fund in such banks. However, I feel some reputed co-operative, such as Shamrao Vithal Co-operative, Abhyuday Co-operative Banks or NKSGB Co-operative Bank which offer more than 10 % are better bets. Alternatively, State Bank of Travncore or State Bank of Patiala also offers better rates than State Bank of India. You may go for these banks too.
Hi
I want to do fixed deposit for around 7-8 lacs for one year. could you please let me know what would be my best bet. After seeing this link, I decided to take Karur Vysya Bank.
Will the interest amount will be tax free?
No, interest will not be tax free. It will be taxed by adding it to your other income, and taxing it at your tax rate.
Sir,
On how much interest per year TDS is to be deducted.?Does this apply if the person has more FD in the same name
Pl note that for senior citizens, IDBI is offering 10.3% while Yes Bank is giving 10.6%.
Thank you Sundaram – I’ll update the post with more recent numbers today!
Thanks sundaram but if you can even tell me that these interest rates will be applicable only if we take an FD for more than 1 yr or for even lesser period of time.
Garima