Latest Bank FD Interest Rates in India-April-2016
In the last 3 months, bank FD rates have been reduced. In this month, analysts expect that RBI would cut 25 to 100 basis points in their quarterly review. Bank FD Rates are still expected to fall further after the rate cut. If you are planning to invest in bank FD’s you should consider investing now before the rate cut. Which are those positive movers in bank FD rates in the last 3 months? Which are those still providing better interest rates now in April-2016?
Positive movers
- Foreign banks: HSBC has increased 2 to 5 year FD interest rate. Interest rates are now between 7.75% to 9%. HSBC has increased 2 years bank FD rate to 7.25%.
- Private Banks: No positive movement in private banks.
- Public Sector Banks: No positive movement in public sector banks.
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Negative Movers
- Foreign Banks: Deutsche Bank has reduced 1 year FD Rate to 6.25%. HSBC has reduced 3 to 5 years FD rates to 6%.
- Private Banks: Almost all banks except for KVB, Yes Bank, Axis Bank have reduced FD interest rates. Banks like TMB, Federal Bank, HDFC Bank, Citi Union Bank, Karnataka Bank and Kotak bank have reduced for short term of 1 to 2 years. Banks like Ratnakar Bank, Federal Bank, HDFC Bank, Karnataka Bank have reduced to medium term of 3 to 5 years. Interest rates are ranging between 7.25% to 9% per annum.
- Public Sector Banks: All public sector banks have reduced interest rates for short term, medium term and long term Fixed deposits. Interest rates are ranging between 7% to 8% per annum.
What does this mean for investors?
As I always indicated in my previous articles, 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 Deutsche Bank where they are offering 7.75% to 9% interest rates for 2 to 5 year period.
- If you are willing to park your money in Private sector banks, you can look for Ratnakar Bank, DCB, Lakshmi Vilas Bank, Karnataka Bank and Bandhan Bank, etc., for long terms of 5+ years as they provide highest FD rates in India.
- If you are willing to park your money in Public sector banks, you can look for Canara Bank, Central Bank of India, Repco Bank, SBH and Syndicate bank which provides highest interest rates for fixed deposits of 5+ years.
Also Read: Best Investment Plans for child education and daughter marriage
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 article and RED indicates that the rates are reduced compared to our previous article (article published in Dec-15). Myinvestmentideas.com is the only website in India, which tracks FD rates regularly and provides whether a particular bank has increased the FD rate or slashed the FD rates. This is a unique feature of our blog. You can check latest recurring Deposit rates of Apr-2016 here.
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Suresh
Latest Bank FD Interest Rates in India-April-2016
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Rates are differrnt on the websites of the bank. For ex. Canara bank posted 7.25% but you are posting 7.50
why are non of the websites updating fd rates as per presenty day?for ex hfdc has cut fd rates here its showing 7.50 its 7.25 now
PLEASE LET ME KNOW WHICH BANK GIVE HIGHEST INTEREST RATE
PLEASE LET KNOW IF IT IS WORTH INVESTING IN BONDS ISSUED BY CANARA BANK FROM SECONDARY MARKET
Arjun
May 23, 2016 at 9:11 am
Hi ! I am 28 years old bachelor living with my parents. We have got a corpus of 55 lakhs recently on sale of property. I have no job(active income), no own house, no insurance (any). Consider I will not do any job for your financial suggestions.
My Requirements and goals:
1. We need 20-25k per month for our living
2. My marriage within 2 years.
3. A 15-20 LAKH own house within 3-5 years.
4. I should have at least double my investment after 15-20 years
5. Retirement corpus.
My idea of planning: need expert opinion on this after reviewing:
1. 5 lakhs in bank account for first one year for monthly expenses and apply for IPO s for listing gains.
2. Park 40-45 lakhs in hybrid equity funds and opt for SWP of 35k after 12 months and SIP the remaining after monthly expenses into 1 mid cap and 1 small cap for long term say 7-10 years.
What I am missing here is how to choice various insurance like term and health for all members and an emergency fund. Will the term policy be applicable as we are not working ??? Also suggest me with a detailed restructuring of scenario. I am able to face medium risk and see that my Requirements are met. Or I would be happy to solve all with a different approach.
Awaiting your detailed reply.
Also, I would ask you to write an article regarding the investment of lump sum amount for regular/ maximised returns !!
What are the other options to get more Interest rate other than the banks which is also to be safe?
Sir ,ICICI HOME FINANCE also gives fd facility at 8.15℅ .What is ur take on that ? My main is- Is it safe to put money in it? And do i have to have a saving account before i apply for fd?
ICICI Home finance is part of ICICI group, hence it is safe to invest. You need not have SB account to open it, however it is better to have SB account where you can issue cheque from your a/c and when being matured, you can deposit in your a/c directly by providing SB account no.
I have 2 questions here.
1. Is it necessary to have a bank account in that particular bank where i need to open a Fixed Deposit ?
2. Is tax charged on the interest we get from the FD ?
Recently TMB launched 400 days scheme and 555 days scheme which offer 8.9% interest. Is it safe to invest?
It is bank and these are monitored by RBI and safe
Hi Suresh Sir,
Thanks for your input it was really helpful.
Any other options apart from SCSS to invest ?
Thank you so much sir.
Thanks,
Shalabh
Hi Sir,
I need your help regarding my father’s investment, he was retired at March 2015 at age 58 but govt. of India & ITI (sick psu) giving his retirement fund by May mid 2016. His total corpus is 29 lacs (23 lacs as PF & 6 lacs from gratuity).As his age is 59 so he is not eligible Senior Citizen scheme.
I would be grateful please provide investment tips so he could get monthly income.
Some of the concerns & inputs are as follows:
a)As interest are decreases sharply and in future chances are there chances of more cuts, so he doesn’t wants to take risk now he needs safe and monthly income from interest.
b)Monthly expenses he needed atleast 30k per month. (25k for expenses & 5k for saving).
c)Other source income are
1)Getting pension Rs 2400 per month.
2)Getting Rent 5000 per month.
Some of the queries are:
1)Where to invest and what is best option to get the better interest return?
2)Our focus is more for senior citizen scheme available in market as interest rate is higher than and after 6 months he would be in senior citizen category as of now we think to invest in bank FD, Is it is a right decision?
3)Like MIS in post office/banks is Mutual Fund MIP is good to invest and as compared to bank/post office which gives higher return in short term and do this scheme giving monthly interest.
4)Investing in Non-Convertible Debentures (NCD), is this investment give better monthly income. (I don’t know anything about it just heard from someone)
5)Where to invest 5k in MF via SIP or 3k in MF and 2k in banks.
Fund selected: HDFC or Tata Balanced Fund
6)How much money to put for emergency fund 1.5 lacs or more please suggest?
Request you to please provide your input on the above query and which will help us to create a path for next upcoming few years.
Thanks,
Shalabh
Hi Shalabh. Here are my comments 1) Considering his age factor, we should put such investments in safe options. You can look for bank FD or post office saving schemes 2) Your decision of putting in bank FD is right 3) MIP in mutual fund does not give monthly interest or returns. It provides dividends which can be paid monthly or quarterly depending on scheme performance. It does not guarantee to pay every month 4) NCD’s do provide monthly income, however these are high risk, your father should avoid it 5) Your father can invest 5K in mutual funds if he does not need money in short term. If yes, you can invest in balanced funds like Tata Balanced fund or ICICI balanced fund. If not, he can invest in debt funds which are relatively low risk 6) Emergency money,l it depends. If he has adequate health insurance, this amount would suffise. Otherwise you need to increase the amount
Karnataka bank is not giving 8% kindly update
Sudhin, Are you sure? I re-checked their website and it still indicates that. Since I depend on bank websites, I do not know really if any of these banks missed to update