Bank interest rates surge in September 2023: These Fixed Deposits outpace PPF returns

In September 2023, most banks are providing higher interest rates on Public Provident Fund (PPF) compared to previous months. For the July-September quarter of FY 2023-24, the Government has maintained the PPF interest rate at 7.1 per cent. Below is a list of banks offering higher interest rates on their fixed deposits for both general citizens and senior citizens in the current month, based on BankBazaar data.

"PPF offers guaranteed returns and boasts significant tax advantages, making it a superior choice to Fixed Deposits. PPF investors enjoy tax benefits at every stage (E-E-E tax advantage), which means there is no tax on the invested amount (up to Rs 1.5 lakh per year under Section 80C), interest earned, or the maturity amount. Additionally, PPF is a long-term investment product, while Fixed Deposits are more suitable for short-term investments (ranging from seven days to 10 years)," said Arpit Suri, CA and personal finance expert.

These Fixed Deposits outpace PPF returns | Image credit: Pixabay

Here is a list of Fixed Deposits offering higher interest rates than PPF

RBL Bank FD- Offers up to 7.80 per cent interest for general citizens and up to 8.30 per cent for senior citizens.

IDFC First Bank FD- Offers up to 7.50 per cent interest for general citizens and up to 8.00 per cent for senior citizens.

KVB Bank FD- Offers up to 7.20 per cent interest for general citizens and up to 7.70 per cent for senior citizens.

Canara Bank FD- Offers up to 7.25 per cent interest for general citizens and up to 7.75 per cent for senior citizens.

Punjab National Bank FD-  Offers up to 7.25 per cent interest for general citizens and up to 7.75 per cent for senior citizens.

Bank of Baroda FD- Offers up to 7.05 per cent interest for general citizens and up to 7.55 per cent for senior citizens.

Kotak Mahindra Bank FD- Offers up to 7.25 per cent interest for general citizens and up to 7.75 per cent for senior citizens.

Axis Bank FD- Offers up to 7.10 per cent interest for general citizens and up to 7.85 per cent for senior citizens.

HDFC Bank FD- Offers up to 7.25 per cent interest for general citizens and up to 7.75 per cent for senior citizens.

State Bank of India FD- Offers up to 7.10 per cent interest for general citizens and up to 7.60 per cent for senior citizens.

ICICI Bank FD- Offers up to 7.10 per cent interest for general citizens and up to 7.60 per cent for senior citizens.

Yes Bank FD- Offers up to 7.75 per cent interest for general citizens and up to 8.25 per cent for senior citizens.

IndusInd Bank FD-  Offers up to 7.50 per cent interest for general citizens and up to 8.25 per cent for senior citizens.

Central Bank of India FD- Offers up to 6.75 per cent interest for general citizens and up to 7.25 per cent for senior citizens.

Indian Bank FD- Offers up to 7.25 per cent interest for general citizens and up to 7.75 per cent for senior citizens.

Indian Overseas Bank FD- Offers up to 7.25 per cent interest for general citizens and up to 7.75 per cent for senior citizens.

Bandhan Bank FD-  Offers up to 7.85 per cent interest for general citizens and up to 8.35 per cent for senior citizens.

Suryoday Small Finance Bank FD- Offers up to 9.10 per cent interest for general citizens and up to 9.60 per cent for senior citizens.

Ujjivan Small Finance Bank FD- Offers up to 8.25 per cent interest for general citizens and up to 8.75 per cent for senior citizens.

ESAF Small Finance Bank FD- Offers up to 8.50 per cent interest for general citizens and up to 9.00 per cent for senior citizens.

Unity Small Finance Bank FD- Offers up to 9.00 per cent interest for general citizens and up to 9.50 per cent for senior citizens.

Jana Small Finance Bank FD- Offers up to 8.50 per cent interest for general citizens and up to 9.00 per cent for senior citizens.

Utkarsh Small Finance Bank FD- Offers up to 8.25 per cent interest for general citizens and up to 8.60 per cent for senior citizens.

Equitas Small Finance Bank FD- Offers up to 8.50 per cent interest for general citizens and up to 9.00 per cent for senior citizens.

Fincare Small Finance Bank FD- Offers up to 8.51 per cent interest for general citizens and up to 9.11 per cent for senior citizens.

AU Small Finance Bank FD- Offers up to 7.75 per cent interest for general citizens and up to 8.25 per cent for senior citizens.

Capital Small Finance Bank FD- Offers up to 7.50 per cent interest for general citizens and up to 8.00 per cent for senior citizens.

North East Small Finance Bank FD- Offers up to 8.50 per cent interest for general citizens and up to 9.25 per cent for senior citizens.