The Reserve Bank of India (RBI) officials are slated to meet on June 2 for the Monetary policy meet wherein it is widely expected that there will be an interest rate cut.
It is therefore best to lock money in high yielding deposits before interest rates drop.
Here are some attractive fixed deposit ideas for individuals.
Mahindra Finance Fixed Deposit
Until Nov 30 last year, Mahindra Finance was giving a fixed deposit interest of 10 per cent on a 36-month deposit.
The company has now reduced the same to 9.25 per cent on 18-60 months with yields that can go as high as 11.13 per cent.
The Deposits have the highest rating and since they come from the Mahindra Group they can be considered as very safe deposits.
This Fixed Deposit comes from Kerala Transport Development Finance Corporation (KTDFC) making it a highly secure fixed deposit, since it is a government of Kerala owned entity.
The fixed deposits attract an interest rate of 10 per cent on the one year, two year and three year deposits.
For deposits over Rs 25 lakhs, the amount is 10.25 per cent. Senior citizens are entitled to an interest rate of 10.25 per cent.
The deposits are guaranteed by the government of Kerala making them very secure and as good as government owned.
Shriram Transport Finance Fixed Deposits
The interest rates on the cumulative deposit is at 9.11 per cent on tenures of 24 and 36 months with yields going as high as 11.48 per cent.
This is pretty decent considering that the interest rates on bank deposits are much lower at around 8.50 per cent per annum.
Interest rates in the economy is falling and the Reserve Bank of India is set to meet in June. Already many banks have cut interest rates from 9.25% at the beginning of the year to 8.5 per cent currently.
It's therefore best to lock money into fixed deposits for a longer period for say at least three years. So, if interest rates fall you would have hedged against falling interest rates.