Author: Nikita Verma

Best Fixed Deposit Interest Rates for Senior Citizens

Updated: 28th Dec 2012

Continuing with the theme of fixed income, let’s look at some of the best fixed deposit interest rates that are on offer for senior citizens right now.

While it is common to see banks offer 0.50% extra over their regular fixed deposits to senior citizens, it is wrong to assume that the difference is always 0.50%. Some banks offer 0.75% and in the case of Yes Bank, they currently offer 1.0% extra over their regular fixed deposits.

The key thing that stands out from the list below is that there are several banks that offer upwards of 10.00% for a senior fixed deposit and that’s the minimum you should look for in today’s environment.

That’s the final list sorted according to the best interest rates I could find.

 

S.No.

Bank

Tenure

Interest Rate
1 Dhanalaxmi Bank

400 days

10.00%
2 Yes Bank

15 months 15 days

10.00%
3 South Indian Bank

1 year to less than 2 years

9.50%
4 Karur Vysya Bank

Above 2 years to 3 years

9.75%
5 Lakshmi Vilas Bank

1 year

10%
6 Karnataka Bank

1 year to 5 years

9.50%
7 City Union Bank

1 year

10%
8 State Bank of Patiala

555 days

9.50%
9 Axis Bank

18 months to 5 years

9.75%
10 Indian Bank

9 months and above

9.50%
11 Syndicate Bank

364 days to 2 years

9.25%
12 Bank of India

1 to 2 years

9.25%
13 Tamil Nadu Mercantile Bank

20 months 20 days

9.75%
14 Punjab and Sind Bank

500 days

9.75%
15 IDBI Bank

1 year to 5 years

9.75%
16 J&K Bank

1 year to 10 years

9%
17 Vijaya Bank

1 year and above

9.50%
18 Indian Overseas Bank

1  – 10 years

9.50%
19 ICICI Bank

2 years to less than 5 years

9.50%
20 Kotak Bank

1 year

9.50%
21 Andhra Bank

1 year to 10 years

9.50%
22 Corporation Bank

12 months and above

9.25%
23 Federal Bank

1 year to 3 years

9.50%
24 State Bank of Travancore

1 year to 3 years

9.25%
25 Canara Bank

1 year to 10 years

9%
26 Bank of Baroda

1 year

9.25%

One final thing about this is if you’re opening a senior citizen fixed deposit you should be aware of form 15H which you can use to prevent the bank from deducting tax at source if your total income for that year is expected to be lesser than the taxable income limit. Here is a good link that explains form 15H and form 15G in detail.

Edit: Corrected error pointed out by Paresh

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Best Bank NRE Interest Rates

RBI liberalized the NRE interest rates last month, and allowed banks to set their own interest rates like they did for the savings bank account interest rates.

Prior to this, it made no sense to open a NRE account for the interest rate because you got a lot higher rate in the NRO account even after tax deduction.

But with this change, now you can get extremely high rates of interest in the NRE account and the interest in this account is tax free as well!

The recent rupee fall contributed to this move, and these are very good rates for NRIs who live in western countries with low interest rates and don’t have a lot of safe options to put their money at work.

I’ve made a list of the banks with the best NRE interest rates that I could spot along with the tenure, and if you see any banks missing from this list then please let me know and I’ll update this list.

Here are a couple of other posts that are related and might be useful as well – the first one explains the difference between a NRO and a NRE account and the second one talks about how you can open a NRE or NRO account while you are abroad.

Now here is the list.

S.No. Bank Tenure

Interest Rate
1 Karur Vysya Bank 1 year to 2 years

10.00%
2 City Union Bank 1 year and less than 3 years

10.00%
3 Tamil Nadu Mercantile Bank 1 year – less than 2 years

10.00%
4 Karnataka Bank 1 year to less than 2 years

9.75%
5 Dena Bank  1 year only

9.60%
6 State Bank of Travancore 1 year to less than 2 years

9.50%
7 South Indian Bank 1 year to 2 years

9.50%
8 Corporation Bank 1 year to less than 2 years

9.50%
9 IDBI Bank 1 year 1 day – 10 years

9.50%
10 J&K Bank 2 years to less than 5 years

9.50%
11 Federal Bank  1 year only

9.50%
12 Indian Bank 1 year to less than 3 years

9.50%
13 Andhra Bank 1 year

9.40%
14 Central Bank of India 1 year to less than 2 years

9.25%
15 Vijaya Bank 1 year to less than 2 years

9.25%
16 Bank of Baroda 1 year to less than 2 years

9.25%
17 ICICI Bank 390 / 590 / 990 days

9.25%
18 HDFC Bank 1 year 16 days

9.25%
19 SBI
 1 year – 10 years

9.25%

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Tax Saver Fixed Deposits with High Interest Rates

Updated on Jan 2nd 2013.

I updated my tax saver fixed deposits page today, and I thought I’d create a separate page to record some of the better paying interest rates on these tax saving FDs.

With that in mind, here is a list with some of the best interest rates on fixed deposits that are covered under Section 80C that I could find.

I’m sure there are some that I have missed, so if you know of any banks that pay well, please leave a comment or drop in an email, and I will update the list.orted List

Bank Interest Rate
City Union Bank 9.50%
State Bank of Travancore 9.00%
IDBI Bank 9.00%
Indian Overseas Bank 9.00%
Vijaya Bank 9.00%
Bank of Baroda 9.00%
State Bank of Hyderabad 8.75%
South Indian Bank 8.75%
SBI 8.75%
Karur Vysya Bank 8.75%
Bank of Maharashtra 8.75%
J&K Bank 8.50%
Central Bank of India 8.50%
Kotak Bank 8.50%
Canara Bank 8.50%
Punjab National Bank 8.50%
ICICI Bank 8.50%
Allahabad Bank 8.50%
Axis Bank 8.25%

This is just a list of the best tax saving fixed deposits, but those are not the only instruments that offer you tax saving benefits. There are other instruments and this easy to understand graphic explains them to you.

 

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Banks with High Interest Rates on 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.

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