Banks with High Interest Rates on Fixed Deposits

by Nikita Verma on January 14, 2011

in Fixed Deposits

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  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  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 1  – 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.

{ 33 comments… read them below or add one }

Ramamurthy March 19, 2013 at 2:39 PM

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


Mahesh kumar March 30, 2013 at 10:22 AM

Sir What is rate interest of Fixed deposit As on 1st April 2013 if Increase any basic % what ? Plz tel me


Nailesh May 27, 2013 at 2:26 AM


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.


Ramamurthy May 28, 2013 at 12:25 PM

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


PS July 18, 2013 at 10:29 AM

Do banks in India pay interest on Fixed Term Deposit compounded monthly or quaterly


Manshu July 18, 2013 at 5:37 PM

Interest is compounded quarterly.


Hot Indian Dealz August 29, 2013 at 12:16 AM

Allahabad Bank is better for deposit. I like Dena Bank but i think, it is private bank, right?


Gopinath September 7, 2013 at 11:03 PM

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 – May this is helpful to those who are looking for high interest rate fixed deposits.


Viswandh mathi October 26, 2013 at 3:00 PM

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


Rajeev November 17, 2013 at 9:16 PM

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……….!


Ramamurthy November 17, 2013 at 9:36 PM

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%.


Rahul December 20, 2013 at 9:55 AM

idbi bank offering9.40 for400days fd


BALAJI April 20, 2014 at 10:24 PM


mail me any change in int rates


Saptarshi May 19, 2014 at 7:02 PM

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


Manshu May 20, 2014 at 2:00 AM

I think a senior citizen FD is probably a good bet for him since it is safe and convenient.


Sameer Modi April 8, 2015 at 6:37 PM

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 !


sukhraj aswal July 5, 2014 at 1:05 PM

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


Bachatmela September 5, 2014 at 10:49 PM

Hello, I also like to do FD suggest me Good Bank for the same


mamta September 11, 2014 at 5:01 PM

I want to invest money for my 8 yr and 2yr old children.
plz suggest me


mamta September 11, 2014 at 5:02 PM

nsc or fd which is a better option?


yaman October 16, 2014 at 4:19 PM

Which bank is best for deposit money now in karnatak


vishwas November 22, 2014 at 5:01 PM

State Bank Of Mysore is offering interest rate of 9% for 1 to 3 years.


sandip January 2, 2015 at 1:23 AM

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.


suman April 8, 2015 at 1:11 AM

I would like to put 5000000 inr in fd for 10 years,quarterly how much interest i can get from bank.


danishpreet singh April 10, 2015 at 11:13 PM

How I make my money doubled or tripled


Harshit May 31, 2015 at 1:41 PM

http://Www.five natinalised bank like PNB,BOB,BOC,SBI,BOM


kalpagam May 31, 2015 at 4:42 PM

Old information. it needs to be updated


rashmikant darji June 13, 2015 at 8:26 AM

Pla give suggestion my1lacs in fd planbut which bank rate of high.,


Hardik Challa August 7, 2015 at 6:56 PM

Hello…please give some information about FD and all


A K MISHRA October 21, 2015 at 4:11 PM

Hi, Please share updated interest rates of the banks for the fy 2015-2016
you may also mail me personally at

A K MISHRA +91-9015584892


Aryan November 18, 2015 at 9:09 AM

If I invest 6 lakh as fixed deposit for 20 years on 8.5% interest rate. ….
How much I will be get after 20 years…..?????


R.Thanga pandi December 7, 2015 at 1:50 PM

Pls inform what is the best fixd deposit bank in tamilnadu


Shashank October 31, 2017 at 9:21 AM

What was the rate of interest in union bank of India in 25-6-2011,for individual,for rs.25000.,for a period of more than 7 years…


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