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.
Iâ€™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 Iâ€™m sure I wouldâ€™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 Iâ€™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)
|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.