Bank interest rates have fallen almost 2.5 per cent, in the last three years. It is extremely difficult to get high interest rates from government banks of 7.5 per cent and beyond. However, we have selected some the highest government bank interest rates. This is slightly better than 7.5 per cent, though it is still lower than post office schemes.
We have now added another two government banks with the highest interest rate.
Union Bank offers an interest rate of 7.55 per cent on a 1-3 year deposit. The 3-5 year deposit of the government owned union Bank offers an interest rate of just 7.50 per cent.
State Bank of Mysore
State Bank of Mysore offers an interest rate of 7.60 per cent on a 1-2 year deposit. State Bank of Mysore is a government owned bank and a subsidiary of State Bank of India.
IDBI Bank offers an interest rate of 7.50 per cent on a 1-3 year deposit.
Remember, that interest rates on government owned banks is fully taxable.
Bank of Maharashtra
Bank of Maharshtra's Mahanidhi 444 deposit currently attracts an interest rate of 7.51%. More or less in line with what most other PSU Banks are offering.
Canara bank is another government owned bank that offers a pretty competitive interest rate, if not high. The bank offers an interest rate of 7.50 per cent, which is in line with what other government owned banks are offering.