Banks Offering Fixed Deposit Rates Above 9% in 2016

Fixed Deposits are one of the most widely procured investment options by customers. It is also relatively safe and reliable especially for short term gains. Reasons for its popularity include -

• Returns are guaranteed although they are lesser compared to those that come with higher risks.
• Compounded interest decides the returns offered.
• Risk factor is minimal and sometimes, individuals can also procure loans or credit cards against this although rates of interest charged on this is relatively higher.

However, despite the advantages, individuals must note that although Fixed Deposits have tax benefits, the interest charged on them is taxable. Individuals cannot withdraw prior to maturity either as this will result in a penalty. Another disadvantage is that, even if the market is in good shape, interest rates will not change.

Required Documents to Procure Fixed Deposit

In order to open a Fixed Deposit account, individuals will need to provide the following -

• Identity Proof such as PAN Card, Passport, etc.
• Address Proof such as Aadhaar card, Voter ID, Utility Bills, etc.

Other documents, if necessary, will be mentioned by the bank authorities.

List of Banks Providing Higher Interest Rates in India

Almost every other bank offers the option to open a Fixed Deposit account, however the rate of interest applicable is also solely decided by the bank in question. Although 9% was the rate commonly offered by banks previously, trends have changed and almost all banks offer a rate of interest that is around 8%. However, there are certain banks that offer interest rates above 9% which have been provided below.

• RBL Bank

  Formerly known as The Ratnakar Bank limited is a fast growing scheduled commercial bank which currently offers the highest rate of interest on Fixed Deposits in the country. Established in 1943, this bank offers a number of products and services.

  Based on the tenure, the interest rate on Fixed Deposits vary. For a minimum tenure of 2 years, the annualised rate of interest is 9% and for a tenure of 3 years, the rate is 9.3%. Senior Citizens have the option of procuring an additional 0.5% interest by opting for the senior citizens Fixed Deposit scheme.

• KTDFC

  KTDFC or Kerala Transport Development Finance Corporation Ltd. offers a general interest of 8.75%. However, if the tenure is five years then the cumulative yearly amount is 10.17% and senior citizens can procure an interest amount of 10.55%.

• Mahindra & Mahindra Financial Services Limited

  Mahindra & Mahindra Financial Services Limited or MMFSL in short is one the major rural Non-Banking Financial Companies (NBFC) in India and provides a number of products and services such as bonds, stocks, loans, shares and so on. Fixed Deposit schemes are offered by this company with an attractive rate of interest of 10% for a tenure of 5 years. Senior Citizens can avail the same for an interest rate of 10.35%.

• DHFL

  DHFL or Diwan Housing Finance Corporation was established in 1984 with the main goal of providing affordable home loans to middle income and lower income groups. Today, however, they have diversified into providing a number of products and services with Fixed Deposits being one of their popular offerings due to the competitive interest rates offered. There are different types of Fixed Deposit schemes provided -

  • Aashray Deposit Plus for individuals offers a rate of interest of 8.50%, however if the deposit amount is above Rs. 50 lakhs and tenure is above 2 years, then a cumulative annualised interest of 9% can be procured.
    • If the tenure is 40 months with a minimum deposit of Rs. 2000, a rate of 9.15% can be availed.
    • Privileged customers can procure an additional rate of 0.25% on the above.
  • Swayamsidha Deposit is provided for women and offers attractive interest rates. For a minimum deposit of Rs. 10,000 and tenure of 18 months, customers can avail a cumulative annualised interest of 9.10% with an additional 0.25% for privileged customers.
  • Wealth2Health Fixed Deposit is a scheme that has the added advantage of acting as a health fund and contributing to health related expenses.
    • Under this scheme, individuals can procure an interest of minimum 9% for a minimum deposit of Rs. 25,000 and a tenure of 2 years and above. Only for a tenure of 40 months, individuals can procure an interest of 9.15%.
    • Privileged customers can avail an additional interest of 0.25%.
• Citi Union Bank

  Citi Union Bank is another top financial institution that offers Fixed Deposits. The interest rates offered is generally is 6.75% for a deposit mount under Rs. 1 crore and for a tenure of a year. However, senior citizens who procure a Fixed Deposit for a year can avail an interest of 8.25%.

• Karnataka Bank

  Karnataka Bank is a renowned financial institution headquartered in Mangaluru in Karnataka and was established in 1924. The banks provides a range of financial products and services such as loans, Recurring Deposits, Credit Cards, Debit Cards and so on. The general rate of interest on Fixed Deposit schemes is 7.75% for a tenure of a year to two years. However, senior citizens who procure Fixed Deposits for the same tenure can avail an interest of 8.25%.

• Axis Bank

  One of the largest private sector banks in India, Axis Bank was established in the year 1990 as UTI Bank and is headquartered in Mumbai. A number of products and services are offered including Fixed Deposits. The general interest rate offered for a deposit under Rs. 1 crore, above Rs. 15 lakhs and a tenure of year and above is 7.60%. However, senior citizens can procure the same for 8.10%.

• Corporation Bank

  Corporation Bank is a public sector bank headquartered in the coastal city of Mangalore in Karnataka. It was established in the year 1906 and offers a number of products and services. Fixed Deposits are one of its popular offerings. For a tenure of 1-3 years and over and deposit of less than Rs. 1 crore, interest rate of 7.50% can be procured.

• ICICI Bank

  ICICI Bank is a multinational financial company that has its headquarters in Mumbai and offers numerous products such as Cards, Loans, Deposits and so on. For a tenure between 271 days to 3 years and deposit amount between Rs. 1 crore to Rs. 5 crore without premature withdrawal facility, the interest rate applicable is 7.60%.

List of Banks Providing Interest Rates Above 9%

Updated on August ‘16