Several banks and financial institutions, primarily small finance banks in India, offer interest rates up to or around 8.75% per annum, mainly on fixed deposits (FDs) for specific tenures and often for senior citizens.
Book FDs at Interest Rates of up to 8.00% p.a.
Within the scheduled small finance bank category, Suryoday Small Finance Bank offer the highest FD interest rate of 8.00% p.a. Among scheduled private sector banks, Bandhan Bank and RBL Bank offer the best FD interest rates of up to 7.20% p.a..
You're unlikely to find an everyday savings account with 8% interest in the US as of early 2026 (rates are closer to 4-5%), but you might find such high rates for Fixed Deposits (FDs) or special accounts, especially in India (like Jana SFB, Suryoday SF Bank, or DCB Bank for FDs) or for specific UK accounts (like Principality BS), often for senior citizens or specific tenures, so check banks like Unity Small Finance Bank, Jana Small Finance Bank, or Suryoday Small Finance Bank, but always verify rates for your location and account type (savings vs. FD).
The Senior Citizen Savings Scheme is a part of post office savings scheme, to provide financial security to senior citizens who are in need of a steady income post retirement. Residents aged more than 60 years, can individually or jointly open SCSS account. The current interest rate applicable to SCSS is 8.2% p.a.
To earn Rs. 50,000 per month from an FD, you need to consider the interest rate offered. For example, at an 8% annual interest rate, you'd need an FD of around Rs. 75 lakhs.
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Consider certificates of deposit
Certificates of deposit (CDs) typically offer higher interest rates than traditional savings accounts. However, there's less flexibility to withdraw your money from a CD.
Here are the countries with the current highest interest rates:
Traditionally, savings bank accounts in India are known to offer interest on your savings deposit on a quarterly basis. We at IDFC FIRST Bank are one of the few banks who offer monthly interest credit on your savings account , where the interest pay-outs on your savings take place on a monthly basis.
If you want your 20 lakhs to grow to a larger sum, it would be wise to invest it in ULIPs, or the equity market. However, if you are averse to risks, you can look at traditional savings plans or pension plans to ensure a guaranteed monthly income for life.
What is the SBI 10000 Monthly Income Scheme? Investors make a one time deposit, starting from a minimum amount that depends on the chosen tenure and desired monthly payout (e.g., Rs. 10,000). The monthly amount includes the principal and interest, calculated at the prevailing term deposit interest rates.
Unity Bank continues to offer 9.5% interest to senior citizens on a tenure of 1001 days. The customer can start the deposit with even ₹1,000. Monthly, quarterly, or cumulative payment of interest is available. Early withdrawal is permitted after seven working days, but at a 1% fee.
As of today, April 1, 2024, SBI's interest rates for FD tenure of 5 years is 7.60%. With this rate, the monthly interest on a 50 lakh deposit in SBI would be around ₹31,667 (assuming monthly interest payout).
So, if you are looking at determining monthly interest for a fixed deposit of 1 lakh, you can divide the monthly interest pay out at 7.11% which is 6,581p.a. and divide that by the number of months which is 12. The monthly interest for a Rs. 1,00,000 FD is Rs. 548.
Best High-Yield Savings Account Rates for January 2026
To get the most interest, look at online banks offering high-yield savings accounts (HYSAs) or Certificates of Deposit (CDs), with top rates around 4.00% to 5.00% APY as of January 2026, offered by places like Varo, AdelFi, Openbank, and Axos, though rates change and often require conditions like direct deposit for the best yields. Traditional banks usually offer much lower rates, so online banks are key for maximizing savings interest, with some like SoFi and Marcus providing good rates with no minimums.
1 lakh FD for senior citizens. Bajaj Finance FD offers senior citizens an additional up to 0.35% p.a. interest rate benefit. The senior citizen FD rates range from 6.74% p.a. up to 7.30% p.a. for 1 to 5 years for senior citizens. The investment made by them can provide high monthly interest for deposits.
It is a reliable LIC FD plan that offers investors a stable and guaranteed return through a secure fixed deposit structure. The LIC FD plan 2026 is a fixed income product that assures steady returns.