Sep-2014: Latest Fixed Deposit Interest Rates in India

Fixed Deposit Interest Rates in IndiaLatest FD interest rates in India indicate that, in the last one month, banks have been reducing interest rates which is not a good sign for investors. One of the safest fixed income options for all investors is bank fixed deposit schemes. Many of us have been investing in these schemes either for short term or for the long term. Parking money with high Fixed Deposit Interest Rates would be out motive. Any interest rate reduction is a bad news to  the investor.

Positive movers


Foreign banks: Last month, Deutsche Bank have increased Bank FD rates. Now it is the turn of Citibank. During this month, it has increased the fixed deposit interest rates for short term of 1 year and 2 year period to 7.75% and 7.5% respectively.

Private Banks: Among private banks, Axis bank has increased the FD interest rate for a 2 year tenure to 9.10%. This is the highest interest rate, this bank offers in their FD schemes.

Also Read: Latest Recurring Deposit Interest Rates

Public Sector Banks: Andhra Bank increased the FD interest for 3 year fixed deposit scheme at 9%.

Negative Movers


Foreign Banks: No negative movements.

Private Banks: HDFC Bank and Lakshmi Vilas Bank have reduced interest rates for short term of 1 year.

Public Sector Banks: Bank of Baroda has slashed the rates for all tenures. Bank of India and IDBI Bank have reduced the fixed deposit interest rates for short term of 1 year period. SBH and SBI have reduced interest rates for medium term of 3 to 5 year period.

What does this mean for investors?


Investors have to be more alert and start parking their money in long term FD schemes. In future, interest rates may further drop and I am not surprised that in the next 30 days to 90 days the fixed deposit interest rates may further fall.

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. Myinvestmentideas.com is the only website 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: 5 Top rated corporate FD schemes for high returns

Latest Bank FD Interest Rates in India in Sep-Oct-14-Interest Chart

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Suresh
Latest Fixed Deposit Interest Rates in India

Suresh KP

25 comments

  • m srinivas

    Dear suresh, I am really thank u to give such a graat information, please suggest me. I want to save funds for my child primary education every year, I am planning to invest every month 50k for next 10 months and also I am investing this in bank fd for 5 year, 6 yr, 7 yr, 8yr, like till 10 years, after 5 years I will get first fd mature and I will use this for my child 1st standard school admission and other expances, so let me kjow is this best idea or is there any idea to get more returns compare to bank. What about other investment options. Pls suggest me. My contacf nu 9964752416.  

    • Hi Srinivas, Concept is good. However you would get returns up to 9% maximum. Instead, you can look to invest in mutual funds for some amount. Choose Balanced funds like HDFC prudence or ICICI balanced funds if you are low risk investor. 

  • prasadhn

    It will be more useful if the details like whether it’s a simple interest or compound interest & in compound interest whether it gets compounded monthly, qtr, annually is given

  • Rajesh

    Hi Suresh 

    Thanks for this very good article. Yes, this is the only site, which gives us the change in FD rates. 
    Can we request you to add one more column "effective interest rate", which tells us the effective rate post tax deductions. This would give investors better clarity to take decision. For exp if is bank is giving 9% and post tax if we minus the % it comes to 6.5%, it will better to add that there. 

    Thanks 

    Rajesh

    • Rajesh. It may not be possible to add a single column as there are 3 tax slabs and for each and every column, we need to add 3 more. Means we need to add approx 15 more columns.Let me check what best I can put it in this table

  • Maven

    This is what i like about this site. keep up the good work sir

  • Subbu

    Also City Union Bank gives a better rate of 9.50% for general citizen and 9.75% for senior citizens for 1 year Fixed deposits

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