Best FD Rates Bank: A list of 14 banks with 8-9% interest rates on Fixed Deposits
Best FD Rates Bank: If you are looking for a popular and secure investment with easy returns, fixed deposits (FDs) are for you. Several banks provide competitive interest rates on FDs in the market, ranging from 8% to 9%. These rates appeal to seniors, who frequently receive an additional interest rate bonus.14 banks offer some of the greatest FD rates, allowing you to decide where to put your savings. Whether you prefer short-term or long-term deposits, this guide will help you find the best FD to fit your financial needs.
List of Banks with Interest Rates
| Bank | Highest Rate? | Slab | Other Tenures |
|---|---|---|---|
| AU Small Finance Bank | 8% | 18 Months | 7.25% (1 year), 7.50% (3 years), 7.25% (5 years) |
| Equitas?Small Finance Bank | 8.25%?? | 444 Days | 8.10% (1 year), 8% (3 years), 7.25% (5 years) |
| ESAF?Small Finance Bank | 8.25%?? | ? 2 years to less than 3 years?? | 6% (1 year), 6.75% (3 years), 6.25% (5 years) |
| Jana?Small Finance Bank | ?8.25%?? | ? 1 year to 3 years?? | 8.25% (1 year), 8.25% (3 years), 8.20% (5 years) |
| North-East?Small Finance Bank | 9%?? | ? 546 days to 1111 days?? | 7% (1 year), 9% (3 years), 6.25% (5 years) |
| Suryoday?Small Finance Bank | 8.60 %?? | ? Above 2 years to 3 years?? | 8.05% (1 year), 8.60% (3 years), 8.25% (5 years) |
| Ujjivan?Small Finance Bank | ?8.25%?? | 12 Months?? | 8.25% (1 year), 7.20% (3 years), 7.20% (5 years) |
| Unity?Small Finance Bank | 9%?? | 1001 Days | 7.85% (1 year), 8.15% (3 years), 8.15% (5 years) |
| Utkarsh?Small Finance Bank | 8.50%?? | ? 2 years to 3 years; 1500 days?? | 8% (1 year), 8.50% (3 years), 7.75% (5 years) |
| Bandhan Bank | 8.05%?? | ? 1 year?? | 8.05% (1 year), 7.25% (3 years), 5.85% (5 years) |
| DCB Bank | 8.05%?? | ? 19 months to 20 months?? | ?7.10% (1 year), 7.55% (3 years), 7.40% (5 years) |
| SBM Bank India | 8.25%?? | Above 18 months to less than 2 years 3 days | 7.05% (1 year), 7.30% (3 years), 7.75% (5 years) |
| RBL Bank | 8.10% | 500 days | 7.50% (1 year), 7.50% (3 years), 7.10% (5 years) |
| Deutsche Bank | 8%?? | Above 1 year to 3 years | ?7% (1 year), 8% (3 years), 7.50% (5 years) |
In India FD interest is taxable
Did you realize that interest on fixed deposits is taxable? It is taxed according to the individual's income tax bracket, not the principal amount. The interest is added to your total income and taxed at your income tax bracket. Banks deduct 10% TDS on interest above Rs 50,000 for senior citizens (Rs 40,000 for others). This cost increases to 20% if the PAN is not provided.
Let's take Mrs Agarwal, a 50-year-old resident of Delhi, as an example:?
?Total interest earned: Rs 55,000 annually?
TDS threshold: Rs 40,000 for general citizens?
TDS deducted: 10% of Rs 55,000 = Rs 5,500?
The Rs 55,000 interest will be applied to Mrs Agarwal's taxable income. She will not have to pay further taxes if her total income is less than Rs 2.5 lakh.Mrs Agarwal can avoid TDS deductions by submitting Form 15G at the beginning of the fiscal year. This declaration certifies that her income is less than the taxable limit; hence, no upfront TDS is deducted.?
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