Latest Bank FD Interest Rates in India-Dec-2014
Latest FD interest rates in India in December, 2014 indicate that, in the last 2-3 weeks, the majority of foreign banks, public sector banks and private sector banks have reduced the interest rates. This was as expected by us in previous articles. In coming months, we expect further fall in the interest rates. What are the current Bank FD Rates in India and how they compare with previous month ?
Based on request from some of our readers last month, we have added a few more banks for tracking their latest FD interest rates.
- Foreign banks: No positive movement in foreign banks.
- Private Banks: No positive movement in private banks.
- Public Sector Banks: No positive movement in Public Sector banks.
- Foreign Banks: While Citi bank has not reduced its rates, HSBC and Deutsche Bank have reduced interest rates for short term to long term fixed deposits.
- Private Banks: ICICI Bank, ING Vysya and Yes Bank has reduced interest rates for short term period of 1-2 years. DCB, Karnakata Bank, KVB, Lakshmi Villas Bank has reduced interest rates for short term to medium term of 2 to 5 years fixed deposits.
- Public Sector Banks: Majority of the public sector / Govt banks have reduced interest rates for short term to medium term. The worst part is most of the banks are now offering around 8.75% interest rates.
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 Private sector banks, you can look for DCB, Ratnakar Bank, Lakshmi Villas bank and Tamilnad Merchantile Bank for short term of 1 or 2 years. However, for medium to long term of 3+ years, Ratnakar Bank, DCB, Citi Union Bank and Lakshmi Villas Bank.
- If you are willing to park your money in Public sector banks, you can look for Canara Bank, Punjab National Bank, Repco Bank, Vijaya Bank and Central Bank of India for short term of 1 or 2 years. However, for medium to long term of 3+ years, invest in Vijaya Bank, Union Bank of India and Punjab National Bank FD Schemes.
- If you are willing to park your money in foreign banks (in India), you can look for Deutsche Bank where they are offering 7.5% to 8.75% interest rates.
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-Dec-2014
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