Interest rates have fallen and fallen real bad. In the last two years, individuals who depend on fixed income like retired folk, have seen interest rates dropping by as much as 150 basis points or 1.5 per cent.
Today, you have to look at interest rates that are a notch higher than most others. With the ability to apply online, the barrier of searching for banks in the locality is now passe.
Here are a few banks deposits that offer the best interest rates on fixed deposits and are pretty safe.
RBL Bank Fixed Deposits
There are a very few banks that are presently offering you 8.75 per cent on a fixed deposit. The 24-36 month deposit at RBL Bank comes with an interest rate of 8.75 per cent, taking the annual yield to 9.04 per cent.
Not a bad bet for saving for 2-3 years.
Deutche Bank is a foreign bank, that is offering an interest rate of 8.50 per cent on 5-year deposits.
Senior citizens are entitled to fixed deposit interest rate of 8.75 per cent for a similar tenure. Pretty decent interest rate from a foreign bank.
DCB Bank is a private listed bank. The bank is offering an interest rate of 8.10 per cent for deposits between 24 months and 5 years.
Though this is lower than the others mentioned above, anything above 8 per cent, is certainly above par.
IDFC Bank is the newest bank to have got a license from the Reserve Bank.
The fixed deposits of the bank offer an interest rate of 8.1 per cent for the 271-365 days tenure, making them a good investment bet.
Bharat Cooperative Bank
Bharat Cooperative Bank is offering an interest rate of 8.75 per cent on deposits above 5 years. For lesser tenure the interest rate is 8.5 per cent.
Unlike the above, which are mostly private sector banks, Bharat Cooperative Bank is a cooperative bank.
Senior citizens are entitled to an interest rate of 9 per cent on deposits above 5 years.
Like IDFC Bank, Bandhan Bank too recently received a license from the Reserve Bank of India.
The 1-2 year deposit of the bank fetches an interest rate of 8 per cent. It's extremely difficult to find banks offering an interest rate of 8 per cent presently.