There are hopes that the new government under Narendra Modi would be able to tame inflation and push the RBI to cut interest rates. Here are 5 fixed deposits that offer high returns in India and you could lock money into them before interest rates fall. We have given a mix of company and bank fixed deposits. All the rates are for individuals who are not senior citizens. We have considered only strong entities, particularly among company fixed deposits.
9.5% on a 1-2 year deposit
Among the listed private sector banks, Karnataka Bank is offering the highest interest at 9.50% on a 1-2 year deposit. It's best to lock money into two year deposit to protect yourself against falling interest rates.
TDS above amount of Rs 10,000
South Indian Bank offers an interest rate of 9.5 per cent on a 400 day deposit for a sum under Rs 100 lacs. The interest rate is compounded every quarter and is for individuals.
Interest rates marginally lower than DCB and South Indian Bank
Development Credit Bank is another listed bank. However, it's deposit rates are slightly lower than that of Karnataka Bank. The bank is offering an interest rate of 9.4 per cent on a 13 months to less than 24 months deposit.
Attractive overall yield
This is not a bank, but a non banking finance company. The company's interest rate on a 36 month deposit under the cumulative scheme is 10 per cent. Now, this is way higher than banks and comes with minimal risk, since Mahindra Finance has a solid pedigree.
Very attractive yield
A 36 month cumulative fixed deposit with Shriram Transport would earn you a effective yield of 11.94 per cent per annum. This is relatively higher than bank fixed deposits.
TDS is deducted if the amount of interest is more than Rs 5000.