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Which Government Bank Is Offering The Highest Interest Rate For Normal FDs?

Team BankBazaar
·2-min read

Fixed Deposits are one of the most popular investment instruments in our country primarily due to their assured returns and high liquidity. They’re often the favourite investments for most of the investors, especially those who are unwilling to take undue investment risks. Now, FDs are available for multiple tenure options usually between 7 days to 10 years and can be opened easily by visiting the bank or through mobile banking and netbanking applications. The interest rates vary from lender to lender and the applicable rate is ascertained based on several factors like the investor’s age, investment tenure, investment amount, etc. Also, most banks offer preferential rates of up to 0.5% p.a. (0.75% in some cases) to senior citizen depositors. Do note, however, that FD returns are taxable according to the investor’s income tax slab and interest income above Rs. 40,000 in a year (Rs. 50,000 for senior citizens) attracts a 10% TDS per investor per bank branch.

So, if you’re looking to invest in an FD, here are the highest advertised interest rates currently being offered by the public sector banks in the country.

Highest Interest Rates for Normal FDs Currently Offered By Govt Banks (for tenures up to 5 years)

Bank Name

Highest Advertised Rate (in % p.a.)

Corresponding Tenure

W.E.F

State Bank of India

5.4

3 yrs to <= 5 yrs

Sep 10, 2020

Punjab & Sind Bank

5.3

>= 1 yr to <= 5 yrs

Oct 12, 2020

Bank of India

5.3

>= 1 yr to <= 5 yrs

Oct 1, 2020

Canara Bank

5.3

2 yrs to <= 5 yrs

Nov 16, 2020

Bank of Baroda

5.3

3 yrs to <= 5 yrs

Oct 3, 2020

Union Bank

5.3

3 yrs to <= 5 yrs

Sep 1, 2020

Punjab National Bank

5.25

3 yrs to <= 5 yrs

Oct 1, 2020

Indian Overseas Bank

5.25

>= 1 yr to <= 3 yrs

Nov 9, 2020

IDBI Bank

5.2

3 yrs to <= 5 yrs

Oct 1, 2020

Indian Bank

5.15

2 yrs to <= 5 yrs

Nov 5, 2020

Central Bank of India

5

2 yrs to <= 5 yrs

Oct 8, 2020

UCO Bank

5

>= 1 yr to <= 2 yrs

Sep 10, 2020

Bank of Maharashtra

4.9

>= 1 yr to <= 5 yrs

Oct 9, 2020

Disclaimer: Data as on respective banks’ websites on Nov 13, 2020. Interest rates are for normal fixed deposits amounting below Rs. 1 crore. Only the main entity of the merged banks are taken. Compiled by BankBazaar.com. Image source: Freepik.com

BankBazaar.com is India’s leading online marketplace for credit cards, loans and more.