Which Government Bank Is Offering The Highest FD Interest Rate?

With the Reserve Bank of India keeping the repo rate unchanged at 4%, many banks have reduced their fixed deposit interest rates. This has been a worrying factor for countless risk-averse investors who heavily rely on fixed deposit returns to meet their financial goals and even to fund their day-to-day expenses. In doing so, many investors prefer government banks over private, foreign or small finance banks for total risk mitigation.

So, if you’re looking to open an FD, here are the current interest rates that are being offered by the government banks in the country. Do note, we have only considered the highest advertised interest rates for each of the public sector banks mentioned in the table below and their applicable tenures. Also, keep in mind that all the interest rates mentioned below are for normal fixed deposits amounting to less than Rs. 1 crore. Senior citizen depositors usually get preferential rates by up to 50 basis points over and above the normal rates.

FD Interest Rates Currently Being Offered by Government Banks

Bank Name	Highest Advertised FD Interest Rate	Applicable Tenure
Union Bank	5.55% p.a.	2 to 5 years
Canara Bank	5.50% p.a.	2 to 5 years
State Bank of India	5.40% p.a.	3 to 5 years
Bank of India	5.30% p.a.	1 to 5 years
Punjab National Bank	5.30% p.a.	3 to 5 years
Punjab & Sind Bank	5.25% p.a.	1 to 5 years
Indian Bank	5.25% p.a.	2 to 5 years
Bank of Baroda	5.25% p.a.	3 to 5 years
Indian Overseas Bank	5.20% p.a.	1 to 5 years
IDBI Bank	5.10% p.a.	1 to 5 years
Central Bank of India	5.10% p.a.	2 to 5 years
UCO Bank	5.00% p.a.	1 to 5 years
Bank of Maharashtra	4.90% p.a.	1 to 5 years

Disclaimer: Data as on respective banks’ website on April 02, 2021. For each year range, the maximum offered interest rate is considered. Interest rates are for normal fixed deposits amounting to below Rs.1 crore. Image: jcomp/Freepik