Get FD interest rate up to 8.1%: Check which bank is offering highest interest rate on FDs with 444 day tenure

Several banks in the public sector and the private sector, including small finance banks, are offering attractive interest rates on fixed deposits with a specific tenure of 444 days. The highest rate currently goes up to 8.10% for senior citizens. This is despite the fact that many banks have been reducing fixed deposit (FD) interest rates after the Reserve Bank of India (RBI) reduced the repo rate at its bi-monthly Monetary Policy Committee meeting. So, FD investors should make sure to get the best rate on their investments.

Let us look at the banks that are offering the best FD rates for both regular and senior citizen investors on 444-day deposits.

Special deposits offered by top banks

State Bank of India (SBI) on Amrit Vrishti offers 7.10% for senior citizens and 6.60% for regular depositors. For super senior citizens the bank offers 10 bps higher over the interest rate applicable for senior citizens.
Bank of Baroda on bob Square Drive Deposit Scheme offers 7.10% for senior citizens and 6.60% for regular depositors. Indian Bank on IND SECURE special deposit offers 7.40% for senior citizens and 6.90% for regular citizens. For super senior Citizen the bank offers 7.65%This rate is applicable till September 30, 2025.

Also read: No penalty on minimum balance: 6 banks that have removed savings accounts balance requirement

Other banks
ESAF Small Finance Bank offers the highest interest rate of 8.10% for senior citizens and 7.60% for regular depositors. Karur Vysya Bank provides 7.25% for senior citizens and 6.85% for regular citizens. Indian Overseas Bank gives 7.45% to senior citizens and 6.95% to regular citizens. Punjab & Sind Bank offers 7.55% for senior citizens and 7.05% for regular depositors. Federal Bank provides 7.35% for senior citizens and 6.85% for regular citizens.

Source- Paisabazaar data

Can FD be withdrawn before maturity?

Yes, fixed deposits (FDs) can be withdrawn before maturity; however, banks may levy a penalty. Note that FDs can be withdrawn only if it is booked under a callable deposit. Most banks impose a penalty ranging from 0.50% to 1% for early withdrawal. The exact penalty depends on the bank’s policy. In some cases, banks may waive the penalty if the deposit has been held for a specified minimum period, for some specified reason or for senior citizens .

Tax Deduction at Source

TDS will be deducted when interest payable or reinvested on Recurring Deposit and FD per customer across all branches, exceeds Rs.50,000 and Rs. 1,00,000/- for senior citizens)= in a financial year. TDS Certificate will be mailed to you after end of every quarter during the financial Year providing the details of TDS deducted during the quarter.

Can TDS influence the maturity of deposit?

As per HDFC Bank website, “Yes, in case of reinvestment deposits ,the interest reinvested is post TDS recovery & hence the maturity amount for re-investment deposits would very to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.”