Banks Offering High-Interest Rates: Several banks offer high FD interest rates. Among these options, Unity Small Finance Bank and Northeast Small Finance Bank offer the highest rates.
Banks with High FD Rates: Fixed deposits (FDs) are a popular choice for traditional investors due to their low risk and higher interest rates than savings accounts. Several banks, including small finance, private, and public sector institutions, are currently offering attractive rates. Several banks offer high-interest rates for your fixed deposits. Among these, Unity Small Finance Bank and Northeast Small Finance Bank offer the highest rates, up to 9% for select tenures.
Higher rates come from small finance banks. Small finance banks often offer competitive interest rates, making them an excellent choice for those seeking higher returns. Small Finance Banks Offering High FD Interest Rates: Unity Small Finance Bank: 9% for 1001 days, NorthEast Small Finance Bank: 9% for 546 to 1111 days, Suryoday Small Finance Bank: 8.60% for 2 to 3 years, Utkarsh Small Finance Bank: 8.50% for 2 to 3 years, Equitas Small Finance Bank: 8.25% for 888 days, Jana Small Finance Bank: 8.25% for 1 to 3 years, Ujjivan Small Finance Bank: 8.25% for 12 months, AU Small Finance Bank: 8% for 18 months.
Private Banks Offering High FD Interest Rates: While private banks generally offer slightly lower rates than small finance banks, they still provide attractive options. Some of them are: DCB Bank: 8.05% for 19 to 20 months, Bandhan Bank: 8.05% for 1 year, RBL Bank: 8% for 500 days, IndusInd Bank: 7.99% for 1 year 5 months to 1 year 6 months, IDFC First Bank: 7.90% for 400 to 500 days, HDFC Bank: 7.40% for 55 months, ICICI Bank: 7.25% for 15 months to 2 years.
Public Sector Banks Offering High FD Interest Rates: Public sector banks focus on stability and long-term security, offering reasonable rates for fixed deposits. They are: Canara Bank: 7.40% for 3 to 5 years, Bank of Maharashtra: 7.35% for 333 days, Indian Bank: 7.30% for 400 days, Bank of India: 7.30% for 400 days, Bank of Baroda: 7.30% for 400 days, State Bank of India: 7.25% for 444 days, Punjab National Bank: 7.25% for 400 days.
Fixed Deposits are Taxable! Interest earned on fixed deposits is taxable. It is taxed according to a person's income tax slab, not the principal amount. "The interest will be added to your total income and taxed as per your income tax slab," Shetty said. He also explained that banks will deduct 10% TDS if the interest exceeds ₹50,000 for senior citizens (₹40,000 for others). This rate increases to 20% if PAN is not provided. Tata Nano? This electric car is less than Rs 3 lakh!
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