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.
Which bank gives the highest rate of Intrest of FDs
SBI is offerin 9.25 % from 1 to 10 years…
canara bank is no longer offering 9.5, its back to 9.25 %
Thanks for that info VRT – I will update this post again shortly – latest by the weekend.
REPCO BANK 10.5% AND 10.6% (for 22 month FD)
its a Govt of India undertaking. Best rates. But I need feedback from consumers on how reliable, good they are.
Oh thanks – didn’t know that about this rate – will check it out, and leave a comment or a post.
My question regarding the PAN card. Some expert advise to deposit in different branches to avoid the income tax. now a days Banks are asking the Pan card number if any one wants to deposit. My question, if anyone deposit in different branches, does the income tax department can find out their total deposit by the PAN CARD number. I need your advise on this case. Why the Banks are asking the PAN CARD. Is it the right way to avoid the income tax. Please let me know your openion.
Thanks and best regards.
Mohan
Hello Mr. Mohan,
The income from interest amount is not tax free. If the interest income from a single branch is less than Rs. 5000/- per year, then the bank does not deduct tax ( that is, there is no tax deduction at source). Otherwise the bank will deduct tax at 10% rate ( 20% if you have not provided PAN number). Remember, you have to declare all the income from interest amount and pay tax for those amounts, whether you put it in single branch or many branches. In summary, you CANNO T AVOID TAX on interest income.
That’s a great response – the limit for the TDS exemption has been increased to Rs. 10,000 from 5k a few years ago.
I want to do fixed deposit for around 1-2 lacs for one year. could you please let me know what would be my best bet. After 1 year how much amount i will get with interest
Hi
I want to do fixed deposit for around 3-4 lacs for one year. could you please let me know what would be my best bet.
Will the interest amount will be tax free?
if it is not tax free how much they will cut from interest for tax for current year 2011?
Is there any monthly income scheme in the fd ?
The table above shows some of the better rates and you can choose one based on whether the bank is close to you and the time duration is suitable for you or not. Tax is deducted from the interest and is calculated based on your tax bracket. This is not tax free income.
There are monthly schemes (by that I think you mean they pay interest monthly) but not every bank offers them so you will have to check with the bank to see if they give that or not.
hi, i am in service and my income tax slab is 20%. My husband falls in 30% income slab. I just want to know whether i can open FD in my name from my husband’s account. Since the FD interest will add to my income which is 20% slab. but this is legally or income tax evasion.
I don’t know the answer to that Amardeep – sorry.
in which bank high rate of intrest
Hi Manshu
I hope that the readers of onemint will find following links useful
A. Get the Highest FD Interest Rates
1. For Fixed Deposits
2. Tax Savings Fixed Deposits
3. NRI Fixed Deposits
http://www.ratekhoj.com/fixed-deposits/index.php
A (a) Fixed Deposit Rates
You can get FD rates based on institution types like banks (Public Sector / Nationalized Banks, Indian Private Sector Banks, Foreign Banks, Cooperative Banks, Post Office Savings Schemes, Companies etc.). You can get interest rates selecting as per deposit period range or you can select specific deposit period for your fixed deposit. You can also search for senior citizen and non senior rates as well. Many banks pay different rates of interest for large deposits, you can select this criteria as well.
The search is broadly categorized in 4 types:
1. FD rates based on institution type/deposit period range
2. FD rates based on institution type/specific deposit period
3. FD rates in selected institutions/deposit period range
4. FD rates in selected institutions/deposit period range
You then fill your search criteria and the resulting table can runs into hundreds of pages. In many cases you have to narrow your search or you have to be specific in your search so that the table may not run in many pages.
You can sort this table as per you choice as per alphabetical list of institutions, period of deposit and rate of interest (highest to lowest) by clicking on the first row of the table.
http://www.ratekhoj.com/fixed-deposits/fixed-deposit-rates/index.php
B. Calculators
Fixed Deposit Interest Calculator – Calculate how much interest payments you can get based on your fixed deposit amount, interest rate and interest payment period.
FD Maturity Calculator – Calculate the maturity amount and effective yield (compound interest rate) of your fixed deposit based on your deposit amount, interest rate and duration
http://www.ratekhoj.com/calculators.php
C. Find Bank IFSC Codes, MICR Codes, Postal Addresses
http://www.ratekhoj.com/banks/index.php
Umesh
ENDEVOUR ATwww.ratekhoj.com IS GREAT BUT REQUIRE CONSTANT UPDATION ELSE IT WILL MISLEAD INVESTORS.
Example:
TAX SAVINGS FD RATES
IDBI BANK PROVIDE 9.5% the SITE SHOWS 9.25%.
SBBJ GIVES 9.5 the SITE SHOWS 9.3
SBHYDERABAD GIVES 9.25 the SITE SHOWS 8.75
YOUR
REGARDS
Thanks for the comment Kartavi – I don’t think anyone is tuned on to the rates the way you are 🙂
Hi,
Dhana lakshmi bank is also offering 10% interest rate on 300 days FD.Please update it
Thanks – I have updated it now.
I want to know , whether opening a FD in Tamil Nadu Mercantile Bank, is safe? I checked the website, it look likes bank gives simple interest on FD. Please clarify.
RBI insures up to Rs. 1 lakh so that should give you some comfort.
Whts noticeable is that the south based banks are offering the best interest rates
Thank you very much for compiling the information.
oh wow you are very welcome – haven’t seen this kind of comment in a long time 🙂
latest deposit interest rates for senior citizen
i want to know the best way of getting some income by investing some amount.
Do a fixed deposit – safest.
Laksmi vilas Bank actually tops the list with 10.5% for 1 yr and less than 2 yrs.
I have a question on your fixed deposit rates. I like a previous poster is from the U.S. and would like to know what is the safest bank to deal with in India. Your rates are very attractive and I would like a some information. Here in the U.S. are banks are FDIC insured, do you have anything like that, that protects your money in the event of a bank failure. I’m interested in something for three years or so. I would appreciate any information you can give me.
Thanks,
Mike.
Safest Banks : all nationalised banks viz state bank of india, bank of baroda etc.
Insurance: Deposits in banks are insured under policy by DICGC upto Rs. 1 lac.
Tax Implications: if interest amount go beyond Rs.10,000 in a financial year.
Online Txn : Few banks allows to open fixed deposit accounts Online. Viz state bank of india, HDFC Bank, IDBI Bank, ICICI Bank.
Online Pre-mature closure : State Bank of India allows to do it. Other banks require manual visit to the branch.
Thanks for your reply. I just have a question regarding the tax implications you wrote about. Is it $10,000.00 the limit you can make without any penalty? If so could I open one account in my name and one account in my wife’s name to avoid going over the limit. I wasn’t sure if Rs.10,000 was the same as $10,000.00? The State Bank of India is the bank I would be most interested in. As a nationalised bank, it sounds to be a very solid institution from what I have read. Thanks again for your reply.
Mike, in order to open an fixed deposit in India – you have to be a resident Indian.
Hi Mike,
These deposits are for resident Indians only, and to the best of my knowledge, there is no way for an American to get a fixed deposit in India, and avail of these rates. Kartavi has already responded about insurance and that’s Rs. 100K so about USD 2400 or so, but again, that might be irrelevant for you.
Let me know if you have any other questions.
Hi,
I have planned to invest around 1.5L in KVB for 1 to 2 yrs for the rate of 10% pa. Is the KVB FDs a safe investment?? What CRISIL ratings does the fd have??
FDs are not rated by CRISIL Akila – up to Rs. 1 lakh is guaranteed by RBI, and generally they are much safer than bank fixed deposits.
Mitalee M July 18, 2011 at 1:45 pm
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.
Hi Mitalee
If you want a fixed amount (Rs 3500 in your case) after a certain period (4 years in this case) the safest investment is bank FD. And this goal can be achieved in 2-3 ways, depending on the funds available at present or in future. (please note that all calculations and discussions are approximate and no calculations are made for the payment of income tax payable on interest earned)
First way, if you have sufficient funds then you can get a Bank FD (presently at 9-10%) for approx Rs 325000 for 4 years, which on maturity when reinvested in a new FD will earn you approx 3,500 per month or 10500 in a quarter (depending whether interest payable by bank is monthly or quarterly). This is more or less like a monthly income plan.
Second way, if you do not have large amount of money to invest in hand, then invest every month, an amount in FD that will give you Rs. 3500 after 4 years (approx Rs 2300-2400)
Third way, if you have funds somewhere in between then beside investing every month for a 4 year FD, you can start investing monthly for the fifth year (in a 5 year FD) say for 13th month of your requirement (61st month from now), 14th month and above, investing even lesser amount, which not only will give you required money but also qualify for 80C deduction for the year of investment (subject to DTC provisions)
It will be better if you contact your bankers who will be a better position to let you know the exact amount to be invested in 4years or 5 years FDs