Interest rates on bank deposits have fallen by at least 0.50 per cent in the last few months across tenures, especially medium to long term. Most of the private sector banks like HDFC Bank, Kotak Mahindra Bank etc., and government banks like State Bank of India, Bank of India have dropped their interest rates below 9 per cent.
Allahabad Bank Fixed Deposits
Allahabad Bank is offering an interest rate of 9.05 per cent of 1,2, 3 and 4 year deposits. Other tenures attract an interest rate under 9 per cent.
Andhra Bank Fixed Deposits
Andhra Bank is offering an interest rate of 9 per cent on a one and two year deposits. Fixed Deposits above this tenure attract an interest rate of below 9 per cent.
Central Bank of India Fixed Deposits
By far the best interest rate offered by government banks in India is offered from Central Bank of India on its fixed deposits. The one and two year deposit carry an interest rate of 9.15 per cent.
Corporation Bank Fixed Deposits
Corporation Bank offers an interest rate of 9 per cent on its 2 and 3 year deposits, while for other tenures it drops below 9 per cent.
Dena Bank Fixed Deposits
The Interest rate on Dena Bank deposits is 9 per cent across various tenures ranging from 1 year to 5 years.
Indian Bank Fixed Deposits
Indian Bank is offering an interest rate of 9 per cent on its one and two year deposit. The others attract an interest rate of 8.75 per cent.
Punjab National Bank Fixed Deposits
Punjab National Bank is offering interest rates of 9 per cent for deposits of 1,2, and 3 years. Deposits beyond that attract an interest rate of less than 9 per cent.
Most of the other PSU banks like Syndicate Bank, Union Bank of India and State Bank of India are offering interest rates under 9 per cent.
Interest rates have fallen in the last few months and would continue to fall. There are reports that the RBI may cut rates going forward in its meeting in early December. It's best to lock money into fixed deposits for a longer tenure as interest rates may fall going forward. So, look at tenures ranging from 3-5 years, not only across bank deposits, but also quality company deposits. This would ensure that you are hedged against falling interest rates.