Now Reading: City Union Bank offers highest rate on 555-day FD
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City Union Bank offers highest rate on 555-day FD
City Union Bank is offering the highest interest rate on 555-day fixed deposits among six banks compared, according to Paisabazaar data as of September 16, 2026. The bank pays 7.25% for regular…
City Union Bank is offering the highest interest rate on 555-day fixed deposits among six banks compared, according to Paisabazaar data as of September 16, 2026. The bank pays 7.25% for regular customers and 7.50% for senior citizens. Karnataka Bank follows with 7% for regular customers and 7.40% for senior citizens. Bank of Baroda offers 6.75% for regular customers and 7.25% for senior citizens.
Indian Bank pays 6.65% for regular customers and 7.15% for senior citizens. Canara Bank offers 6.60% for regular customers and 7.10% for senior citizens. Union Bank of India offers the lowest among the six, with 6.55% for regular customers and 7.05% for senior citizens. The difference between regular and senior citizen rates ranges from 0.25% to 0.50% across banks.
TDS rules apply: for customers under 60, TDS is deducted if annual interest exceeds Rs 50,000. For senior citizens aged 60 and above, the threshold is Rs 1 lakh.
Indian Opinion Analysis
The 555-day FD tenor is a sweet spot many banks use to compete for deposits without locking in long-term high rates. City Union Bank is a smaller private lender, so it offers a premium over public-sector banks to attract depositors. Senior citizens get 0.25-0.50% extra across the board because banks value their stable, longer-term savings. The TDS thresholds are set by the Income Tax Act: Rs 50,000 for those below 60 and Rs 1 lakh for those 60 and above. Before booking a deposit, a customer should check if the bank is covered by DICGC insurance up to Rs 5 lakh per depositor. The actual post-tax return depends on the depositor's income tax slab.
Source: bazaar.businesstoday.in
This brief was synthesised by AI from the source linked above.
