Bank fixed deposits (FDs) remain a popular choice for investment, catering not only to senior citizens seeking a secure income but also to risk-averse investors. However, an excessive reliance on FDs can be detrimental. It is crucial to evaluate your asset allocation and financial goals to determine the appropriate amount to allocate to FDs.

For instance, relying on FDs to save for a child’s higher education, which is 15 years away, may not be the most effective strategy due to the post-tax interest rate potentially not providing a real return (return above the rate of inflation). On the other hand, if you have a short-term goal, such as planning a holiday in two years, an FD can be a suitable option.

When selecting an FD, it is essential to compare the interest rates offered by different banks. Below is a compilation of banks that provide the highest FD rates for deposits up to ₹1 crore across various tenures.


Here’s the information presented in a table format:

Bank6 months to <1 year1 to <2 years2 to <3 years3 to <5 years5 years and above
DCB Bank Ltd.6.25-7.257.15-7.757.55-7.907.40-7.907.25-7.65
Axis Bank Ltd.5.75-6.006.70-7.107.107.107.00
HDFC Bank Ltd4.50-6.006.60-7.107.00-7.157.00-7.207.00
Indusind Bank Ltd.5.00-6.357.50-7.857.25-7.507.257.00-7.25
IDFC First Bank Ltd.4.50-5.756.50-7.757.25-7.757.00-7.257.00
RBL Bank Ltd.4.75-6.057.00-7.807.507.107.00-7.10
YES Bank Ltd.5.00-6.357.25-7.507.257.257.00-7.25
ICICI Bank Ltd.4.75-6.006.70-7.107.107.006.90-7.00
Canara Bank6.15-6.256.85-7.256.856.806.70
Union Bank of India4.4-5.256.00-6.756.306.50-6.706.70
Dhanlaxmi Bank Ltd.6.80-7.40
Federal Bank Ltd.6.756.75-7.256.50-6.756.50-6.605.00-6.00
Bank of Baroda5.00-6.256.75-7.157.256.50-7.256.50
Indian Overseas Bank4.95-5.356.50-7.256.806.506.50
Punjab National Bank6.00-6.256.75-7.256.80-7.006.50-7.006.50
State Bank of India5.25-5.756.80-7.107.006.506.50
Jammu & Kashmir Bank Ltd.4.75-6.607.107.006.506.50

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