Top 5 Public Sector Banks Promising Best Interest Rates On FD In 2021

A fixed deposit is among the finest debt instruments offered by banks, offering a variety of advantages such as risk-free interest rates, guaranteed returns, tax benefits, deposit safety, flexible tenure, and additional interest rates for senior citizens, among others. Fixed deposit instruments, as opposed to equities, mutual funds, or other market-linked instruments, are the best short- and long-term investments since they are not market-driven. By taking into account all of these variables, we've prepared a list of the top 5 public sector or government banks that are currently giving the best interest rates in the market to both regular and senior citizens.

Union Bank of India

For a deposit amount of less than Rs 2 Cr, Union Bank is offering the following interest rates to both regular and senior citizens.

Period	Regular FD Rates	Senior Citizen FD Rates
7 - 14 Days	3.00%	3.50%
15 - 30 Days	3.00%	3.50%
31 - 45 Days	3.00%	3.50%
46 - 90 Days	3.50%	4.00%
91 - 120 Days	3.75%	4.25%
121 to 180 Days	4.30%	4.80%
181 Days to less than 1 Year	4.40%	4.90%
1 Year	5.00%	5.50%
More than 1 Year to 2 Years	5.20%	5.70%
More than 2 Year to 3 Years	5.40%	5.90%
Mor than 3 Years to 5 Years	5.50%	6.00%
More than 5 Years to 10 Years	5.60%	6.10%
Source: Bank Website, W.e.f. 09/07/2021

Canara Bank

With effect from 08.02.2021, Canara Bank is promising the following interest rates on fixed deposits of less than Rs 2 Cr. The Canara Tax Saver Deposit scheme is offered by the bank at a rate of 5.50 percent per annum to the general public. The maximum deposit that can be made is Rs 1.50 lakh to enjoy tax benefits.

Tenure	Regular FD Rates In %	Senior Citizen FD Rates In %
7 days to 45 days	2.95	2.95
46 days to 90 days	3.90	3.90
91 days to 179 days	4.00	4.00
180 days to less than 1 Year	4.45	4.95
1 year only	5.20	5.70
Above 1 year to less than 2 years	5.20	5.70
2 years & above to less than 3 years	5.40	5.90
3 years & above to less than 5 years	5.50	6.00
5 years & above to 10 Years	5.50	6.00
Source: Bank Website

State Bank of India

The country's largest lender State Bank of India (SBI) is promising the following interest rates to both regular and senior citizens on a deposit amount of less than Rs 2 Cr.

Period	Regular FD Rates	Senior Citizen FD Rates
7 days to 45 days	2.90	3.40
46 days to 179 days	3.90	4.40
180 days to 210 days	4.40	4.90
211 days to less than 1 year	4.40	4.90
1 year to less than 2 year	5.00	5.50
2 years to less than 3 years	5.10	5.60
3 years to less than 5 years	5.30	5.80
5 years and up to 10 years	5.40	6.20
Source: Bank Website, W.e.f. 08.01.2021

Array

The interest rates on domestic term deposits and NRO accounts offered by Punjab and Sind Bank are listed below. Senior citizens would receive an additional 0.50 percent interest rate on term deposits of less than Rs. 2 Crore, over and above the specified rates, for maturities of 180 days and above for new and renewal of fixed deposit accounts.

Period	Regular FD Rates	Senior Citizen FD Rates
7 - 14 Days	3.00	3.50
15 - 30 Days	3.00	3.50
31 - 45 Days	3.00	3.50
46 - 90 Days	3.70	4.20
91 - 120 Days	4.05	4.55
121-150 Days	4.05	4.55
151 - 179 Days	4.05	4.55
180 - 269 Days	4.45	4.95
270 - 364 Days	4.50	5.00
1 Year - 2 Years	5.15	5.65
Above 2 Year to less than 3 Years	5.15	5.65
3 Years - 5 Years	5.30	5.80
More than 5 Year - 10 Years	5.30	5.80
Source: Bank Website, W.e.f. 16/05/2021

IDBI Bank

The applicable interest rates on resident term deposit / NRO of less than Rs. 2 Crore are listed below.

Period	Regular FD Rates	Senior Citizen FD Rates
07-14 days	2.70	3.20
15-30 days	2.70	3.20
31-45 days	2.80	3.30
46- 60 days	3.00	3.50
61-90 days	3.00	3.50
91-6 months	3.50	4.00
6 months 1 day to 270 days	4.30	4.80
271 days upto< 1 year	4.30	4.80
1 year	5.00	5.50
More than 1 year - 2 years	5.10	5.60
More than 2 years to less than 3 years	5.10	5.60
3 years to less than 5 years	5.30	5.80
5 years	5.25	5.75
More than 5 years - 7 years	5.25	5.75
More than 7 years - 10 years	5.25	5.75
More than 10 years - 20 years	4.80	5.30
Tax Saving FD (5 Years)	5.25	5.75
Source: Bank Website, W.e.f. July 14, 2021