Latest SBI interest rates (Jan-2013)-A quick review
The interest rates on fixed deposits and recurring deposits are falling month on month. I had surplus money and was enquiring about the latest interest rates to deposit for short term period of 1-2 years and noticed a gap in the rates offered by various banks. I have seen one of the international bank in India where I have my salary account is offering around 7.5% per annum. However comparing the latest SBI interest rates, I felt they are reasonably good. Why we need to compromise on our returns on FD?
Latest SBI interest rates
SBI is the largest public sector bank in India. Latest SBI interest rates are enclosed below. I felt choosing a re-investment plan would be a good option. Re-investment plan is nothing but your interest would get re-invested and it would not be credited to your bank account year on year. The entire FD amount along with interest would be paid to you at maturity. As per the rates offered by them, it indicates that the FD would get doubled only between 8 to 9 years (average we can assume it would be around 8.5 years). With falling interest rates, the period required for the FD amount to be doubled would further increase in future.
Conclusion: I agree there are smaller banks which are offering little higher interest rates. When interest rates are falling, latest SBI interest rates are giving some hope for investors that large banks are still offering good interest rates.
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Topic: Latest SBI interest rates (Jan-2013)-A quick review