Highest Interest Rate on Bank Fixed Deposits (FD) – July 2016

Highest Interest Rate on Bank Fixed Deposits - July 2016

Highest Interest Rate on Bank Fixed Deposits – July 2016

The post lists down the rate of interest on Bank fixed deposits as of July 1, 2016.

You might want to bookmark this page as the FD interest rates would be updated every month. Would help you in better decision making.

Fixed Deposit Highlights:

  • Most banks offer FDs for tenure of 7 Days to 10 Years.
  • The Ratnakar Bank & IDBI Bank do offer fixed deposits up to 20 years too.
  • For very short Term Deposits the interest rate is similar to that of Savings Account and so you should not worry about FD. Also Interest up to Rs 10,000 in Saving Account is Tax free.
  • Most banks compound interest quarterly
  • Banks offer Loan/Overdraft against the amount available in Fixed Deposit. The interest is generally 0.5% to 1% more than that offered to FD.
  • TDS (Tax deduction at source) at the rate of 10% is deducted, if the interest income is more than Rs 10,000 in financial year per bank
  • There might be penalty for pre-mature withdrawal of Fixed Deposits

Also Read: Highest interest rate on savings account in India?

Fixed Deposit Interest Rates:

The highest interest rate is offered by The Ratnakar Bank at 8.5% for 24 to 36 months Fixed Deposit.

Also IDFC Bank and Bandhan Bank are the newest banks to open and are offering higher rate of interest across deposit tenures.

For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 4 slabs:

  • FD for Less than 1 Year
  • FD for 1 to 2 years
  • FD for 2 to 5 Years
  • FD for 5 to 10 years
  • FD for More than 10 years

We show the highest interest rates on fixed deposits for the above duration buckets. We have also compared the best interest rates on offer by that being offered by State Bank of India (SBI), ICICI Bank and Post Offices.

Click for Best Tax Saving FDs u/s 80C

Interest Rate for FD of Less than 1 Year:

The highest interest rate is offered by Bandhan Bank (6 Months – Less than 1 Years) and IDFC Bank (271 – 365 days) at 8.00%.

Bank Description Interest Rate
Bandhan Bank 6 Months – Less than 1 Years 8.00%
IDFC Bank 271 – 365 days 8.00%
Karur Vysya Bank 91 Days to 180 Days 7.90%
Canara Bank 270 days to less than 1 year 7.75%
IDFC Bank 181 – 270 days 7.75%
The Ratnakar Bank 241 days to 364 days 7.75%
Karnataka Bank 121 days to 180 days 7.70%
City Union Bank 181 days to 364 days 7.65%
DCB Bank 6 months to less than 12 months 7.65%
Lakshmi Vilas Bank 271 – 364 days 7.60%
Andhra Bank 9 months to < 1 year 7.50%
Canara Bank 270 days to less than 1 year 7.50%
Indus Ind Bank 270 days or below 1 year 7.50%
J&K Bank 271 days to less than 1 year 7.50%
Kotak Mahindra Bank 271 Days to less than 5 years 7.50%
Lakshmi Vilas Bank 181 – 270 days 7.50%
Syndicate Bank 270 to 1 Year 7.50%
Tamilnad Mercantile Bank Ltd 180 Days 7.50%
The Ratnakar Bank 181 days to 240 days 7.50%
J&K Bank 181 days to 270 days 7.25%
State Bank of India Government Bank Benchmark 5.00% – 7.00%
ICICI Bank Private Bank Benchmark 4.00% – 7.40%

 

Also Read: 21 Hidden Charges in Saving Bank Account

Interest Rate for Fixed Deposit of 1 – 2 Years:

The highest interest rate is offered by Bandhan Bank and IDFC Bank (366 – 400 days) at 8.25%.

Bank Description Interest Rate
Bandhan Bank 1 year to less than 2 years 8.25%
IDFC Bank 366 – 400 days 8.25%
IDFC Bank 271 – 365 days 8.00%
IDFC Bank 401 – 540 days 8.00%
The Ratnakar Bank 12 months to less than 24 months 8.00%
DCB Bank 18 months to less than 24 months 7.90%
Lakshmi Vilas Bank 18 Months to less than 5 years 7.90%
DCB Bank 13 months to less than 18 months 7.85%
DCB Bank 12 months to less than 13 months 7.80%
Lakshmi Vilas Bank 1 year to Less than 18 months 7.80%
Lakshmi Vilas Bank 1 year to less than 18 months 7.80%
City Union Bank 1 year & upto 5 years 7.75%
IDFC Bank 541 – 731 days 7.75%
Indus Ind Bank 1 year to below 1 years 2 months 7.75%
J&K Bank 1 year to less than 3 years 7.75%
Karnataka Bank 1 year to 2 years 7.75%
Karur Vysya Bank 1 year to less than 2 years 7.75%
Tamilnad Mercantile Bank Ltd 1 Year 7.75%
Yes Bank 12 Months 10 Days to 12 Months 20 Days 7.75%
Yes Bank 18 Months 8 Days to 18 Months 18 Days 7.75%
Tamilnad Mercantile Bank Ltd 20 Months 20 Days 7.70%
Tamilnad Mercantile Bank Ltd Above 1 Year to less than 20 Months 20 Days 7.70%
Union Bank of India 1 Year 7.65%
Bank of Maharashtra 444Days/Mahanidhi 7.61%
Bank of Maharashtra 1 year to 2 years 7.60%
State Bank of Mysore 1 year to less than 2 years 7.60%
State Bank of Patiala 1 year to 555 days 7.57%
Canara Bank Above 1 year to less than 2 years 7.55%
Punjab and Sind Bank 1 year to below 2 years 7.55%
South Indian Bank 1 year to less than 3 years 7.55%
Union Bank of India >1 Year – 3 Year 7.55%
Central Bank of India 1 yr to less than 2 yrs 7.50%
Corporation Bank 1 year to less than 3 years 7.50%
Dena Bank 1 year to less than 2 years 7.50%
HDFC Bank 1 Year to 5 years 7.50%
IDBI Bank 1yrs to < 5yrs 7.50%
UCO Bank 1 Year 7.50%
State Bank of India Government Bank Benchmark 7.25% – 7.50%
ICICI Bank Private Bank Benchmark 7.40% – 7.50%
Post Office FD (1 year) Post Office 7.10%
Post Office FD (2 years) Post Office 7.20%

Click for Best Interest Rate on Recurring Deposits

Interest Rate for Fixed Deposit of 2 – 5 Years

The highest interest rate is offered by The Ratnakar Bank (24 months to less than 36 months) at 8.50%.

Bank Description Interest Rate
The Ratnakar Bank 24 months to less than 36 months 8.50%
Bandhan Bank 2 years to less than 3 years 8.25%
Bandhan Bank 3 years to less than 5 years 8.00%
DCB Bank 24 months to 60 months 8.00%
Lakshmi Vilas Bank 18 Months to less than 5 years 7.90%
City Union Bank 1 year & upto 5 years 7.75%
Indus Ind Bank 2 years 6 months to below 2 years 9 months 7.75%
Karur Vysya Bank 2 years and above 7.75%
Yes Bank 24 Months 12 Days to 24 Months 24 Days 7.75%
Tamilnad Mercantile Bank Ltd 20 Months 20 Days to less than 5 years 7.70%
State Bank of Hyderabad 75 Week (525 days) – Platinum Kuber Deposit 7.65%
Bank of Maharashtra 666 Days/ Maha Labh 7.62%
J&K Bank 3 years to less than 5 years 7.60%
Canara Bank 2 years & above to less than 5 years 7.55%
Central Bank of India 777 Days 7.55%
South Indian Bank 1 year to less than 3 years 7.55%
Union Bank of India >1 Year – 3 Year 7.55%
Andhra Bank Above 2 years to 5 years 7.50%
Bank of Maharashtra 2 years to less than 3 years 7.50%
Central Bank of India 2 yr to less than 3 years 7.50%
Corporation Bank 1 year to less than 3 years 7.50%
HDFC Bank 1 Year to 5 years 7.50%
IDBI Bank 1yrs to < 5yrs 7.50%
Karnataka Bank Above 2 Years to 10 years 7.50%
State Bank of India Government Bank Benchmark 7.00% – 7.50%
ICICI Bank Private Bank Benchmark 7.50%
Post Office FD (2 years) Post Office 7.20%
Post Office FD (3 years) Post Office 7.40%
Post Office FD (5 years) Post Office 7.90%

 

Also Read: Where to Park Money for Very Short Term [less than 6 Months]?

Interest Rate for Fixed Deposit of 5 – 10 Years

The highest interest rate is offered by The Ratnakar Bank (36 months to less than 120 months) at 8.15%.

Bank Description Interest Rate
The Ratnakar Bank 36 months to less than 120 months 8.15%
DCB Bank More than 60 months to 120 months 7.90%
Lakshmi Vilas Bank 5 years and above 7.80%
Bandhan Bank 5 Years to 10 years 7.75%
Karur Vysya Bank 2 years and above 7.75%
Tamilnad Mercantile Bank Ltd 5 Years to 10 Years 7.70%
Andhra Bank Above 5 years to 10 years 7.50%
City Union Bank Above 5 years & upto 10 years 7.50%
HDFC Bank 1 Year to 5 years 7.50%
IDFC Bank Above 5 years & upto 10 years 7.50%
Karnataka Bank Above 2 Years to 10 years 7.50%
State Bank of Hyderabad Above 5 yrs and upto 10 yrs 7.50%
State Bank of Mysore Above 5 yrs and upto 10 yrs 7.50%
Yes Bank 1 Year to <= 10 years 7.50%
State Bank of India Government Bank Benchmark 7.00%
ICICI Bank Private Bank Benchmark 7.25%

Interest Rate for Fixed Deposit of more than 10 Years

The Ratnakar Bank and IDBI bank offers fixed deposit of up to 20 years.

Bank Description Interest Rate
The Ratnakar Bank 120 months to 240 months 8.00%
IDBI Bank Above 10 years & upto 20 years 7.00%

Source: Bank Websites                                          Last Updated: July 1, 2016

Disclaimer: The Fixed Deposit Interest Rates keep on changing. You are advised to check the interest rates with banks before making your FD.

Also Read: 13 Investments to Generate Regular Income

Helpful Posts on FD:

It would be helpful for you to look at following posts before you choose your fixed deposits:

  1. How to increase bank deposit insurance through Joint accounts?
  2. How to fill Form 15G/H to avoid TDS deduction?
  3. How Safe is Your Fixed Deposit in Bank?
  4. How are you loose Money in Fixed Deposits?

117 thoughts on “Highest Interest Rate on Bank Fixed Deposits (FD) – July 2016

  1. Rajat Monga says:

    Hello Amit, very informative article. Great work. I need to ask a suggestion from you about investment. I have a pretty handsome amount in hand and want to invest shortly. So should I go to the traditional options like FD or maybe to Peer 2 peer lending. I am really in a dilemma, please let me know about your viewpoints.

    • For short term you should bank on FD especially if you are looking for guaranteed risk free return. I personally have never invested in P2P and hence have no experience, but remember its unregulated and can be quite risky. Also in case of default you’ll have to go legal which is not a good thing in India.

      You can also look to invest in Arbitrage Mutual Funds in case you are in 30% tax bracket and investment horizon is less than 1 year.

      • Rajat Monga says:

        Thanks Amit.
        My relative invested in one such P2P platform called http://www.loankuber.com/. And he earned pretty good in a very short time. So I was also thinking of investing.
        And thank you so much for your reply .

        • It would be great if you share your/your relatives experience on such P2P platforms. Will help remove inhibitions and get on the ground feel.

  2. Sujit Barge says:

    Hello sir,
    I have to make FD or FDs of about Rs. 5.5 lakhs.
    What are the best options for a single or more than one FDs.
    Thanks

    • Pick the bank offering highest interest rate from the table above. You can go for single FD if you are sure that you would not break it until maturity. If you are doubtful, make multiple FDs as breaking one would not impact others.

  3. RAJARSHI DAS says:

    I want to invest in Fixed Deposits of Tamil Nadu power finance & infrastructure development corporation ltd. Is the company regular in payment of the periodic interests & principal repayment.

  4. Marshal Leander says:

    Hello Sir, I am from Chennai, I am looking for a bank that has high interest rate. I am planning to deposit Rs 20000. Need your suggestions.

  5. Hi amit great to read your views. Do you give individual suggestion. If yes what is your contact information

    • I am not certified financial planner so it might not be right to give individual advise. But if you have any particular question I can answer it to best of my knowledge.

  6. syed maqsood says:

    Amitji,
    Hi,

    What is your advise about foreign bank “Deutsche Bank” I want make fixed deposits around 20-Lakhs
    Plz advise your comments???

  7. Hi Amit,

    Thank you so much for your valuable answers it’s really worth reading them.

    My question is I would like to invest 2 lack’s for my daughter(for her needs) in long term for 16 years, I have seen other questions which says equity mutual funds or balanced mutual funds will give better interest rates. Can you please give me the best mutual funds company’s / Bank names with high security for long term. Thank you.

    • You have rightfully decided to invest in equity/balanced fund for goal which is 16 years away. You can browse through Mint50 list and pick accordingly.

      • Thank you Amit, How much is the TDS taken for this kind of funds.

        • Equity Mutual Funds are tax free if redeemed after 1 year. Balanced funds with less than 75% equity investment are treated as debt fund for taxation. If invested for more than 3 years, the gains are long term capital gains. Its taxed at 20% after taking indexation benefit. There is no TDS on mutual funds. You can read more about Tax on Mutual Funds here.

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