Latest Fixed Deposit Interest Rates in India-Aug-2014

Bank FD Interest Rates in India in Aug-2014Latest Fixed Deposit Interest Rates in India-Aug-2014

Latest FD interest rates in India in August, 2014 indicate that, in the last one month, several banks are reducing interest rates for short term, however increased interest rates for long term of 3+years. Happy to see that interest rates are moving as per our prediction in last month's article. This is a good time for investors who are looking to lock their money for the long term.

Positive movers

  • Foreign banks:  There are no positive movements in the interest rates for Foreign banks.
  • Private Banks: In private banks, Axis bank has increased FD interest rates for 2, 3 and 4 years tenure to 9.2%. 9.05% and 9.05%, respectively. The Lakshmi Villas bank has increased interest rates for the 1 to 5 years tenure to 9.3% rate across all tenures.
  • Public Sector Banks: Corporation bank has increased rates from 1 to 5 years, IDBI Bank focused only on 5+ years and increased its interest rates. SBH and Syndicate Bank too has increased 3+ years interest rates.

Also Read: Current recurring deposit interest rates in India

Negative Movers

  • Foreign Banks: Surprisingly, Deutsche Bank have reduced 5+ years interest rates to 9%, while HSBC has reduced interest rate to 8.25% for a 1 year tenure.
  • Private Banks: Axis Bank, Karnataka Bank and KVB have reduced interest rates between 1 to 3 years tenures.
  • Public Sector Banks:  While banks are focusing to cut short term interest rates and increase long term interest, Indian bank is the only bank which has cut down long term interest rates of 3 to 5 years tenure to 8.75%. Repco Bank, OBC and Vijaya bank have reduced short term interest rates between 1 to 2 years.

What does this mean for investors?

Last month I indicated that there is the likely hood that short term interest rates would fall. We are seeing this now in the latest rates of 1 to 3 years. Like I indicated in the previous month's article, investors have to be more alert and start parking their money in long term FD schemes.

Banks providing higher interest rates

  • If you are willing to park your money in foreign banks (in India), you can look for HSBC bank for short term of 1 or 2 years. However, for medium to long term of 3+ years, invest in Deutsche Bank FD Schemes.
  • If you are willing to park your money in Private sector banks, you can look for Lakshmi Villas bank and Axis Bank for short term of 1 or 2 years. However, for medium to long term of 3+ years, invest in Lakshmi Villas Bank, KVB and Karnataka Bank.
  • If you are willing to park your money in Public sector banks, you can look for Corporation bank, Repco Bank and Bank of Maharastra for short term of 1 or 2 years. However, for medium to long term of 3+ years, invest in Corporation Bank, IDBI Bank and Bank of India FD Schemes.

Comparison of current and latest bank FD interest rates among various banks in India

The comparison list would help investors to choose the right bank for fixed deposits. Green indicates that the rates have been increased compared to our previous month's article and RED indicates that the rates are reduced comparing to our previous month's article. is the only financial blog in India, which tracks FD rates month on month and provides whether a particular bank has increased the FD rate or slashed the FD rates. This is a unique feature of our blog.

Also Read: How to become Crorepathi by investing in bank FD Schemes?

Latest bank FD interest rates - Aug-2014

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Latest Fixed Deposit Interest Rates in India


  • Tamilarasan

    Dear Sureshji,

    I have opened a fixed deposit for 100000 in SBI through e-fixed deposit for the tenure of 1 year,

    Maturity amount is coming only 109308 ?!! if interest rate is 19%, for one year total should be10800 (being NRI account holder, Tax deduction not applicable).

    Please clarify , thanks in advance.

  • Sanket

    Hi… Suresh sir, nice article. Sir, i want information regarding flexi deposite. How it differ from fd, rd? And which is better option to get good return.



  • Sampat Kumar

    Suresh ji, I have opened an RD of Rs. 5,000/-pm at SBI for 1 year, on the basis of 9% interest rate, whereas I am getting only Rs. 62,984/- after one year, can you tell me what is the process of calculation ? Thank you.

    • Sampat, As per your maturity amount is computed every month. Means, your Rs 5,000 would earn Rs 38 as interest for 1st month (5,000 x 9% / 12). Second month, your Rs 10,000 + 38 would earn 9% interest. This way you should get approx Rs 63K which you got. 

  • Maven

    Wow this is good info to me.
    Thank you sir and how are you feeling now?

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