Latest Fixed Deposit Interest Rates in India-Oct-2014
Latest FD interest rates in India in September/October, 2014 indicate that, in the last one month, foreign banks have increased the interest rates, however, some of the public sector banks and private banks have reduced the interest rates. Investors have been betting on IPO’s in Sep-2014, hence there is indication that they are liquidating short term funds and diverting them to IPO’s. In coming months, we do not expect any major change in interest rates.
- Foreign banks: After a long time, foreign banks have increased interest rates. Citi bank increased rates for 2 years and 3 years tenure. Deutsche Bank has increased 1, 2, 3 and 5 year tenure FD interest rates.
- Private Banks: No positive movement in private banks.
- Public Sector Banks: No positive movement seen in public sector banks.
- Foreign Banks: No negative change seen in foreign banks.
- Private Banks: Surprisingly, Katnataka Bank and Lakshmi Villas bank have reduced interest rates for all FD tenures. The Citi Union Bank has reduced interest rates for short term of 1 year period.
- Public Sector Banks: Bank of Maharastra has reduced interest rates on FD’s for 2 to 5 year period. Corporation Bank on the other hand has reduced interest rates for all tenures.
What does this mean for investors?
I indicated in a previous article that investors should park money for the long term. Foreign banks still provide lesser interest rates. The best way is to invest in bank FD schemes of public sector banks and large private banks.
Which banks are providing higher interest rates now?
- If you are willing to park your money in foreign banks (in India), you can look for HSBC bank for short term of 1 year. However, for medium to long term of 2+ 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 Axis Bank.
- If you are willing to park your money in Public sector banks, you can look for Repco Bank, Syndicate Bank, Allahabad Bank, Bank of India, Vijaya Bank for short term of 1 or 2 years. However, for medium to long term of 3+ years, invest in Repco Bank, Allahabad Bank, Bank of India, Canara Bank, Corporation Bank 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. 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.
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Latest Fixed Deposit Interest Rates in India
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