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.
Bank of Baroda is offering the 9.10 % interest rate on FD of 444 days. Under the scheme of bank of baroda UStave scheme.
Thanks for that info Dr. Pramod.
Karur Vysya bank is offering 10.25% for 555 days and 10% for 2 years (Ordinary citizen)
Thanks Ganesh for that info.
I had invested rupees 20,000.00 (twenty thousand ) only in IDFC Trancha II application no 16347120. kindly mail me my certificate in my mail id anup897@gmail.com also, so that i may avail tax exemption benefites for the financial year 2010-2011.
Anup – use this link to download your allotment advice:
http://karisma.karvy.com/investor/jsp/IDFC-APP.jsp
Dear Radhakrishanan, thanks for information of TDS on FD. But i think TDS is applicbale on interst more than 10000/-in palce of 5000/-on FD in a financial year.
Karnataka bank is offering 9.75% for 1-2 years deposit
Thanks for the info Anil.
Thanks for the update , As on 1 Feb 2011, interest rates at Tamilnad Mercantile Bank
10% for 555 days.
Thanks for that info Benu.
If the aggregate interest income from fixed deposits that you are likely to earn for all your deposits held in a branch is greater than Rs 5,000 in a financial year, you become liable for TDS.
can you confirm the maximum limit of interest on FD after which the interest is taxable?
As far as I know interest on FD is fully taxable. I’m not sure about this though because my tax knowledge is limited.
Dear Sir, I have an FD with ICICI bank for 5 years at 8.25% interest. I want to break the FD and want to make a new FD for 990 days at Interest rate of 9.75. The FD as of today is 10 months & 5 days old. The bank says if I break it after 10 months & 5 days which is less than an year in that case we the bank shall pay me interest only at 6% for 10 months & 5 days and will recover 2.25% (which have paid me for 10 months & 5 days) + 1% penalty charges that is a total of 3.25% of the total interest paid to me so far. I think he is wrong in saying this. The bank can charge only 1% towards penalty charge and can not pay me lesser rate of interest for 10 months and 5 days. Could you please tell me what exactly the rule says. thanks and best regards Rajinder
The rule is that they will give you interest at the rate that the actual tenure is for. So, if you kept it for 10 months, then they will see what the rate would have been if you initially said that you’re going to take FD for 10 months and pay you that rate of interest.
Then from that rate of interest they will deduct the penalty, else everyone will have an incentive to keep the FD for the highest interest rate regardless of the period, and then break it.
SOUTH INDIAN BANK ALSO REVISED INTEREST RATES WEF 1ST FEB 2011. THE RATES ARE 10% FOR SENIOR CITIZENS AND 9.25% FOR OTHERS FOR A TERM OF 1 YEAR
Thanks for the info – I’ll update the post a little later in the week.
CORPORATION BANK REVISED INTEREST RATES WEF 1ST FEB 2011. THE RATES ARE 9.75% FOR SENIOR CITIZENS AND 9.10% FOR OTHERS FOR A TERM OF 1 YEAR.
I guess TMB is also offering 10% for both senior citizens and otherwise for 555 days.
Thanks Jayagopal – I’ve started seeing those ads today, so I guess this is a recent development. Thank you for bringing this to my notice, and I’ll update my post.
INDIAN BANK IS OFFERING 9.75% FOR SENIOR CITIZENS AND 9.00% FOR OTHERS FOR A PERIOD OF 555 DAYS.
Wow! Thanks! – So Indian bank pays 0.75% extra to senior citizens instead of 0.50% like other banks? I didn’t know that – thank you!
Dear Sir,
I think the ICICI bank the interest rate as of today for senior citizen shows 9.75%. Can you pls confirm this.
Dear Rajinder – thank you for pointing that out. You’re right, and I have also included this rate which is available on a 990 days deposit in the post.
Hi ;
Can I have the latest bank interest rates ,
thanx…
Here you go Rattan:
http://www.onemint.com/2009/07/03/bank-interest-rates-india/
Good Job. This compilation will help a lot of people in getting the best deal.
regards
Indian bank is offering 9.25% for one year and one day for senior citizens
Thanks for that info, so it must be 8.75% for other residents? A bit less than the 9% which is the least I have used to include in this list.
Can an individual with demat a/c invest in the script CRISIL Limited
what are your views about the company
You will need a trading account to buy any share, and I don’t have any opinions to offer on CRISIL.
The interest rate for 2 years 16 days in HDFC Bank is 9% only. For senior citizen its 9.5% .
Thanks Deepesh – I realized that earlier today, and have updated the post accordingly. You perhaps saw the email but not the update on the site itself.
Thanks