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,
My husband is retiring from service and would like to invest the benefits, so that the returns can help us to pay back the Home Loan EMI. Which would be better whether a short term / long term FD’s in banks or in Post Office deposits? what are the interest rates going on as of now?
Right now some banks offer more than 10% on FDs for senior citizens so that is one option you can look at.
I am so sorry my husband is not a senior citizen. He is just 38 and retiring from his defence service after 20 yrs of service. Plz confirm details. Thankyou
i would like to know about fixed deposit, i mean multyply inhow many years?
Have 1 question wrt tax applicable to FD. Lets say i open an cumulative 2 year FD in August 2011 for 10,000 at 10%; in June 2012 i prematurely break the FD and applicable rate (net of interest penalty & duration) is 8%; now will I pay tax on interest for the PY 2011-12 as per 10% or 8%. If at 10%, for 2012-13, I will downward adjust my taxable interest?
Hi, If we deposit some amount in FD for a particular period, shall we withdraw the interest amount every month ?
Hi Manshu,
Kindly include Oriental Bank of Commerce in your list which is giving 9.5% interest on 12-23 months fixed deposit.
The interest rate of Dhanlaxmi bank is attractive obtusely but is this bank trustable?
Hello,
Much appreciate if you could let me know the following:
1.Which bank in Bangalore gives the highest FD returns.Total investment may be 50L.
2. If we ned to run the family on the interest gained through FD,how do we avoid TDS.
I think it will be better if you open multiple FD accounts with different bank so that at least TDS will be reduced
Hi Manshu,
Your information is really very helpful. Kindly include Saraswat Bank in your list which is giving 10% interest on 3-4 years fixed deposit.
Thanks Jay – that’s a co-op bank is it not? I’m not inclined to add co-operative banks to this list at the moment.
Interest Rate of FDR on 1yr has been reduced to 10% by Lakshmi Vilas Bank w.e.f. 20.04.12.
Hi Manshu,
I have retired recently & received lump sum retirement benefits( Total 35 lakhs).
I have no need for monthly income.
I would like to invest this amount in low risk instruments with liquidity& decent returns.
I see that some banks SBI, Corporation bank are offering FDs with no premature penalty.
Corporation bank http://www.corpbank.com/asp/showNews.asp?news_id=215
seems particularly attractive with 9.75 % rate.
I am little doubtful about the bank though, i have no experience with corporation bank, i know its a nationalized one .
Whats are your thoughts if i invest my whole kitty with their FD?
Can you suggest some other safe investments with liquidity & capital appreciation?
Regards,
Naveen
Naveen,
FDs are surely an attractive proposition in today’s scenario. If your interest income is non taxable then investing entirely is not a bad idea if it is meeting your desired income requirement.
However, the investment does not cover inflation and to counter it some part of your surplus you should park in high growth instruments. A mix of debt and equity will be a good option.This will cover the risk of inflation.
well u dint add Ing vysya bank which is offering 9.75 for 366 days & interest paid is monthly quarter yearly & on maturity….
Deccan Grameena bank is a govt bank. It is sponsored by State bank of Hyderabad.
10% on NRE accounts for 7 years at Deccan Grameena Bank
Hi
I would like to invest Rs. 50000 in corporation bank as fd for 5 or 10 years.
I would like to know whether tax will be deducted? In such case how much?
Elda
Hi,
I want to know the x account can i with draw monthly interest amount. If possible please suggests which bank (and account) is best interests rates for monthly withdrawing interests.
Awaiting for your reply.
Hi,
Please clear my doubt. I have invested in tax saving fixed deposit for this financial year. I have to submit xerox copy of the receipt advice in order to obtain form 16. Since CUSTOMER ID is mentioned in the FD receipt advice, is it safe to submit as it is or should I strike out CUSTOMER ID in the xerox copy??
Awaiting for your reply.
Hey friends i want tio know fd interest rates of yes bank tell me any one?
Chirag – here is the page with the interest rate of Yes Bank.
http://www.yesbank.in/index.jsp?navigationUrl=%2FYES+Bank+Repository%2Fen%2FBranch+Banking%2FBranch+Banking+-+Personal%2FFixed+Deposits
What is it that you’re trying to do? If you could give more details, perhaps you could get more information.
Sbi increased deposit rates. flash on cnbc. one suggestion. make a fresh post on prevailing income tax saving fd for late latifs . still 4 days for this fd