Sep-2014: Latest Fixed Deposit Interest Rates in India

Fixed Deposit Interest Rates in IndiaLatest FD interest rates in India indicate that, in the last one month, banks have been reducing interest rates which is not a good sign for investors. One of the safest fixed income options for all investors is bank fixed deposit schemes. Many of us have been investing in these schemes either for short term or for the long term. Parking money with high Fixed Deposit Interest Rates would be out motive. Any interest rate reduction is a bad news to  the investor.

Positive movers


Foreign banks: Last month, Deutsche Bank have increased Bank FD rates. Now it is the turn of Citibank. During this month, it has increased the fixed deposit interest rates for short term of 1 year and 2 year period to 7.75% and 7.5% respectively.

Private Banks: Among private banks, Axis bank has increased the FD interest rate for a 2 year tenure to 9.10%. This is the highest interest rate, this bank offers in their FD schemes.

Also Read: Latest Recurring Deposit Interest Rates

Public Sector Banks: Andhra Bank increased the FD interest for 3 year fixed deposit scheme at 9%.

Negative Movers


Foreign Banks: No negative movements.

Private Banks: HDFC Bank and Lakshmi Vilas Bank have reduced interest rates for short term of 1 year.

Public Sector Banks: Bank of Baroda has slashed the rates for all tenures. Bank of India and IDBI Bank have reduced the fixed deposit interest rates for short term of 1 year period. SBH and SBI have reduced interest rates for medium term of 3 to 5 year period.

What does this mean for investors?


Investors have to be more alert and start parking their money in long term FD schemes. In future, interest rates may further drop and I am not surprised that in the next 30 days to 90 days the fixed deposit interest rates may further fall.

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.

Also Read: 5 Top rated corporate FD schemes for high returns

Latest Bank FD Interest Rates in India in Sep-Oct-14-Interest Chart

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Suresh
Latest Fixed Deposit Interest Rates in India

Suresh KP

25 comments

  1. Hi Suresh,

    I am an NRI. i do savings by my spouse account(she is in india). recently i deposited 50K fd for 1yr in CUB and this month plan to deposit 1 L in CUB, isit any money deduction from matured amount if i use my wife account.

    1. Banks deduct TDS of 10% (if PAN no is given) and 20% without PAN details on your spouse FD scheme. If she does not have taxable income, your wife can submit form 15G to bank and they would not deduct tax.

  2. can you please advise me as to from which bank i can get more interest if i deposit my retirement benefits for more than one or two years

  3. Sir, I have a FD for Rs.2.5 Lacs for 2 years with ICICI bank(9%). I learnt that TDS will be deducted if the interest is more than 10000Rs. I had quit my job and I no more have a job. Would submitting the 15G form would spare me from TDS? Kindly shed some light on this.

     

    Thanks

    Mali

  4. HI Suresh, Thanks for such a helpful post. My question is regarding form 16, Could you advise if there is any provisoon to get form 16 via email from the bank?.

    Thanks.

  5. Iam an NRI please advise which bank is secured and gives high interest… As of now iam using HDFC…………

    1. Hi MD Shafi, All banks are safe as these are continously monitored by RBI. However if you still have doubt, you can invest in nationalised banks which are 100% secure.

  6. I understand Repco bank is giving high interest rates on fixed deposits. Additional bonus is, they do not deduct any TDS and don't need PAN card as well. Concern is, their cheques are not accepted by any bank and we can only withdraw money from them. They claim that this is "Government of India enterprise". Need some information on this bank as this is not registered as a bank with RBI and how safe is our deposit there.

    1. Anandan, This is news to me. Have you verified that other banks do not accept Repco Bank cheques ? Several readers indicated on this blog that they heard about this bank and started investing in their FD schemes. This is how even I have included them as part of regular bank FD rates.

  7. Dear suresh, I am really thank u to give such a graat information, please suggest me. I want to save funds for my child primary education every year, I am planning to invest every month 50k for next 10 months and also I am investing this in bank fd for 5 year, 6 yr, 7 yr, 8yr, like till 10 years, after 5 years I will get first fd mature and I will use this for my child 1st standard school admission and other expances, so let me kjow is this best idea or is there any idea to get more returns compare to bank. What about other investment options. Pls suggest me. My contacf nu 9964752416.  

    1. Hi Srinivas, Concept is good. However you would get returns up to 9% maximum. Instead, you can look to invest in mutual funds for some amount. Choose Balanced funds like HDFC prudence or ICICI balanced funds if you are low risk investor. 

  8. It will be more useful if the details like whether it’s a simple interest or compound interest & in compound interest whether it gets compounded monthly, qtr, annually is given

  9. Hi Suresh 

    Thanks for this very good article. Yes, this is the only site, which gives us the change in FD rates. 
    Can we request you to add one more column "effective interest rate", which tells us the effective rate post tax deductions. This would give investors better clarity to take decision. For exp if is bank is giving 9% and post tax if we minus the % it comes to 6.5%, it will better to add that there. 

    Thanks 

    Rajesh

    1. Rajesh. It may not be possible to add a single column as there are 3 tax slabs and for each and every column, we need to add 3 more. Means we need to add approx 15 more columns.Let me check what best I can put it in this table

  10. Also City Union Bank gives a better rate of 9.50% for general citizen and 9.75% for senior citizens for 1 year Fixed deposits

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