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.
Positive movers
- 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.
Also Read: What are the latest recurring deposit rates in India?
Negative Movers
- 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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Suresh
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dear suresh,
it is very good website for getting suggestions for investing money. I request your suggestions for my below query
can you please tell me regarding fixed deposit which one is giving more rate of interest and when our amount will be double. At the maturity time total amount should be tax free.
Sam, None of the bank FD schemes offer tax free income. You can invest in PPF account or tax free bonds if you want tax free returns
DEAR SURESHJI,
MY PARENTS ARE SENIOR CITIZEN, MOTHER IS HOUSEWIFE AND FATHER IS RETD. GOVT. EMPLOYEE AND EARNING PENSION. IF I PUT FIXED DEPOSIT AROUND 10 L ON MY MOTHER’S NAME, IS THERE ANY TAX LIABILITY ON ME OR MY FATHER? SHOULD I SPLIT AMOUNT IN VARIOUS BANKS I.E. CENTRAL BANK, SBI OR CANARA BANK OR CAN I KEEP IN ONLY ONE BANK
KINDLY ADVISE.
Hiya suresh
Could you plz add Dena bank, ING Vysya bank, Indian Overseas Bank, Bharatiya Mahila Bank and Central Bank of India
I know it will be more work for you but Plz do it for me 🙂
Thank you
Maven
Sure Mavn, you can would see this in this month article.
Hi Suresh,
This is a very good website and congrats for maintaining with utmost perfection.
I would like to invest some amount in FD for the benefit of my parents.
Is it possible to remit the amount accrued by interest rate on a monthly basis? If so which bank does this? Will this affect in a long term? I am looking at a monthly amount of 15,000 INR.
Thanks for your time.
Veera
Veera, most of the banks are offering quarterly interest pay out and not monthly. You can check with banks in case they are offering. Alternatively you can invest in Post office MIS scheme where the interest is paid every month.
HI, Suresh
I want to know Is Panjab and Marastra cooperative bank is safe for fixed deposit? as It is providing good rate of interest on FD.
Regards
Sharad Ahuja
Sharad, Though all Banks are monitored by RBI, investing in nationalised banks provides highest safety compared to cooperative banks. Though there are regulated by RBI, these are also governed by state governments.
Hi
I think SBI has reduced the FD rates to 8.75% from 9.00% for 1 to 3 yrs, please check and update it.
Thanks Suresh for considering my request.
Ratnakar bank is private sector bank which is expected to come out with an IPO in next 2 quarters. Probably, it would become more visible to the investors after its stock market IPO just like REPCO bank which gained a lot of attention from investors after the successful IPO of its sister concern REPCO Home finance.
And, I agree APGVB is not that popular and has branches only in AP & Telangana but considering that it is promoted by SBI & State Govt. the risk of default is very minimal.
Hi Suresh,
Some good private sector banks (like Ratnakar Bank, Tamilnad Merchantile Bank & DCB) which offers the best interest rates in the industry do not appear in your list. These banks are operational for many decades now and comparable to Karnataka Bank, City union bank and Lakshmi Villas Bank which appear in your list.
Also, if you can include strong Grameena Vikas bank, (like APGVB) it would be very helpful for viewers of your blog.
Thanks
Jalpesh
Hi Jalpesh, The one which I added about CUB, LVB are added few months back based on readers request like you. I would add TMB and DCB. However other banks indicated by you like Ratnakar bank or APGVB at not that “famous” and do not have much branches, hence would re-think before adding to this list
Mr. Suresh
First of all, I would like to thank you for all the nice & quite knowledgeable articles.
I request your suggestion for my below query. My query is:
What is the maximum amount one can invest with no TDS in “SBH double FD scheme”, after submitting 15G form every year?
Regds
Anil
Anil, You can submit Form 15G where interest income does not exceed your taxable income (FY 2014-15 it is Rs 2.5 Lakhs)
Good morning sir.
Does RBI Announces its rates very 2 months or ?
Plz advice
It does every quarter Maven. I am keen to know the reaon that you are tracking this closure ?
I just want to learn how RBI makes all the current rates?
Please correct. SBI is 8.75% for 1 yr.
Sandeep, Website still shows 9%. Are you sure, how you came to know about this ?