Bank Fixed Deposit Interest Rates in India-Feb-2014
In the last 2-3 months, Bank fixed deposits have lost shine due to several tax free bonds, which offered similar interest rates which is tax free. Latest bank fixed deposit interest rates in India indicate that there is an increase in interest rates in some of the Public sector banks and reduction of interest rates in foreign banks.
Positive movers
- Foreign banks: HSBC has increased the FD rate for a 2 year tenure.
- Private Banks: Kotak bank increase the rates for 1 year FD and Karnataka Bank raised interest rates for a 5 year FD scheme.
- Public Sector Banks: Bank of Baroda, Repco Bank and UBI has increased the FD rates for specific tenures.
Negative Movers
- Foreign Banks: Citibank and Deutsche Bank have reduced FD rates for specific tenure. Citibank generally offers the lowest interest rates among foreign banks.
- Private Banks: No negative movement.
- Public Sector Banks: Repco bank, which has been offering the highest FD rates in public sector banks, have reduced the rates for 1 and 2 years.
Comparison of 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 best investment ideas blog.
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Suresh
Bank Fixed Deposit Interest Rates in India
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Hi suresh,
i am planning to open RD account (monthly Rs 10,000) in Repco bank..is it ok ? or any other scehme to invest?
please suggest me..
regards
Raja Kumar
Raja, It is owned by Govt. of India, hence safe to invest.
Hi, Can you please advise is it safe to invest in REPCO Bank FD? they look attractive and there will not be any TDS on the interest earned…Kindly advise….
Mayur
Repco Bank is govt.of India enterprise, hence safe to invest.
Dear Suresh, What is going to be the future trend of fixed deposit rates in India. If Iam not wrong it is very low (1-2 %) in most developed countries. Is India also likely to folow the same route as we become more developed.
Hi Nicholas, In future, I feel the rates may get reduced.
Hello Sir, I would like to invest 6k/months in the mutual funds through SIP. I had bad experience with SBI infrastructure ….I lost 8k in that a couple of years ago. I’m don’t want to take any big risk and would like to go for balanced funds. Time horizon would be 5-7 years. Please advice. Thank you!
Mahesh, Investors who invested in sector funds would see such bad experiences. My suggestion is that you invest in balanced funds like ICICI balanced fund or HDFC balanced funds…
Hello Sure sh
Thanks for your advice. Could you please help with the best balanced funds as of now? You’ve suggested ICICI AND HDFC balanced funds. I’m ready to take little risk say about 25% for better future. I’m planning to invest 6k/month. So far I hv 3 jeevan saral LIC policies and make small investments via NSC and no other savings. my salary fluctuates between 24k to 20k/month and my monthly expenses is approximately 12k. I hv only one depended (70+ years old mother). please advice. thanks.
Mahesh, apart from balanced funds, you can start investing in ICICI pru focussed fund and Quantum long term equity fund which are in large cap segement. This can provide good returns to you in long run.
Hello Suresh Sir, thank you for the guidance.
Dear suresh
I am planning to invest 12k per month (6×2 )on SIP., can u pls suggest top performing sip’s.
Thnx
Hi Rakesh, Refer this article where I have given several good performing funds. You can consider based on your risk appetite. https://myinvestmentideas.com/2014/02/top-10-best-performing-sip-mutual-funds-to-invest-for-2014/
sir i want to 2 lakh in banks FD for two years for my child future study.i donot want any TDS deduction in bank what should i do . as money will be required in year of 2016
i comes in 10% slab.
thanks
arvind
Arvind, On Rs 2 Lakh, you would get 9% interest which comes to Rs 18,000 and for 2 years it would be Rs 3,600. Tax on this can come to Rs 3,600 for 2 years. If your spouse has some source of income and if this can be proved such funds pertains to her, you can invest in her name and get tax exemption.
sir, may i know the minimum amount of deposit under mahila scheme in repco bank..
Nivedha, Unfortunately this info is not available with me. You may contact the bank officials and get it.
Hi Suresh,
Is Repco Bank a Public Sector Bank? Please confirm
Sivaraman, This is registered under co-op society, but owned by Govt of India.
Hi Suresh,
Repco Bank is not a public sector bank. Its a central government Co-operative society. This infor I got from a new branch opened at Nanganallur Chennai. Correct me if I'm wrong.
Sivaram, Repco is registerted under cop-operative society, however owned by Govt. of India. Hence I classified under public sector banks for comparisoin purpose
Thanks for the reply. It means our investment will be safer as it is deposited in any other Public sector banks.
Hi Suresh, How much return can we expect from debt funds which invest 100% in Corpororate and Govt debts?
Hi Abeesh, There are no fixed returns. It depends on where the debt MF invests. Generally FMP’s which invests in these corp bonds and govt bonds gets 9% to 11% returns. When I say 11% they invest in NCD’s which are unsecured hence they may get higher returns. However they invest lower amount of such unsecured NCD’s.
Why your not informing about Lakshmi Vilas Bank FD Rates, they offering 9.75%(General) and 10%(Sr.Citizen) for One year Block. I this is best and highest Interest Rate in the Industry.
Kiran, I am providing all public sector banks, major private and foreign banks. There is no specific reason that I have no covered this. I can cover in future articles.
Sir I m a regular reader of ur all articles. But till date I hav no idea how to invest in mfs. Sips ,what is the differrnce in equity and det funds. Demat is rrwuired or not.plz ecplain me in a very clear manner. Thanks
Hi Dr. Gupta, Demat is not required for MF investments. You can consider opening MF account with ICICIdirect.com or Fundsindia.com etc. Equity funds invest in direct stocks. This carry high risk. Debt funds invests in Corporate FD, NCD, Tax free bonds and small portion in stocks. Debt funds carry low risk. If you are new investor, invest in hybrid funds like ICICI Balanced fund or HDFC balanced fund. Once you are familair, you can invest in variety of funds.