555-Day FD: Which Bank Pays You ₹3,400 More?

Four public-sector banks offer 555-day FDs on ₹10 lakh, but interest rates differ. Indian Bank tops the list at 6.80%, while Union Bank trails. Picking the wrong bank quietly costs you thousands over 18 months.

Here's what happened: Indian Bank offers the highest interest rate of 6.80% on a 555-day fixed deposit, making it the top pick among major public-sector banks for this specific tenor.. Bank of Baroda and Canara Bank offer lower rates than Indian Bank for the same 555-day period, resulting in a smaller maturity amount on a ₹10 lakh deposit.. Union Bank of India trails the group with the lowest rate, meaning depositors there earn the least interest over the 18-month-plus horizon..

What you should do: Check the exact 555-day FD rate on each bank's official website or mobile app — rates change quarterly, so never rely on old screenshots.. Compare post-tax returns if you are in the 30% tax bracket, since TDS at 10% applies on FD interest above ₹40,000 per year per bank.. Split large deposits across two banks if you want both a higher rate and DICGC insurance coverage of ₹5 lakh per bank per depositor..

Senior citizens typically get an additional 0.25–0.50% over the regular FD rate at all four banks — if you are 60+, the gap in favour of Indian Bank widens even further.