Interest rates in India are expected to fall in the next few months, as the Reserve bank of India looks to cut interest rates on easing inflation.
If that happens you are likely to get interest rates at even lower rates than prevailing now. We have given a select list of banks and institutions, where you can get a decent interest rates with a 2-year holding.
9% Interest Is Pretty Decent
At the moment, it is impossible to find a larger private sector bank giving an interest rate of 9 per cent. With quarterly compounding the interest rate of 9 per cent is pretty decent. If you do not have an RBL Bank branch nearby, you can consider opening a FD online.
New Kid On The Block
Bandhan Bank is among the newest private sector bank in the country. The company is offering an interest rate of 8.5 per cent, which is pretty decent. Senior citizens are entitled to an extra 0.50 per cent.
Those with a medium term investment strategy can consider the same.
Government Backed Institution
The Kerala owned government company is offering an interest rate of 8.5% on a 2-year deposit. Pretty decent returns considering that most banks are offering interest rates of less than 8 per cent.
The deposits are highly secure considering the fact that they are backed by the government of Kerala.
This is a AAA rated deposit, which is offering an interest rate of 8.45 per cent for a 2-year deposit.
Senior citizens are entitled to 0.25 per cent extra. A strong pedigree makes the deposits relatively secure.
TDS On Company Deposits
Shriram Transport has an interest rate of 8.42 per cent, that is payable annually. There is a TDS on interest over Rs 5000, that is applicable on company deposits. Again, the deposits are pretty secure considering the strong pedigree that the company has.
Post office offers an interest rate of 8.4 per cent on its time deposit. Again, it is pretty decent considering a 2 year time frame.