Interest rates in the economy are falling as the Reserve Bank of India (RBI) has thrice cut repo rates this year, leading to a fall in bank deposit interest rates.
Ratnakar Bank Ltd
Ratnakar Bank is a reputed private sector bank which is soon likely to come up with an IPO. The bank is among the few players who is giving interest rate in excess of 9 per cent on its fixed deposits.
A 12-24 months deposit at the bank gives you an interest rate of 9.10 per cent. A 36 and 60 months deposit gives an interest rate of 9.00 per cent.
Senior citizens are entitled to an additional interest rate of 0.50 per cent. The interest rate on savings deposit is 5.1 per cent, which is again way higher than what most other banks are giving.
Lakshmi Vilas Bank
Lakshmi Vilas Bank is a listed bank with a strong presence in South India. It is among the few banks that is still offering interest rate of 9 per cent on its fixed deposits.
The 900 day deposit of Lakshmi Vilas bank attracts an interest rate of 9 per cent. The interest rate for senior citizens is as much as 9.50 per cent, with the yield going higher on account of quarterly compounding.
Invest in these deposits for the long term
If you are looking at deposits other than bank deposits which offer high interest rates of more than 9 per cent, you can look for company fixed deposits like Mahindra Finance and the Kerala government backed KTDFC. Both these offer healthy yields in excess of 10 per cent.
As mentioned at the start of the article interest rates in the economy are headed lower, so if you are looking for investment in fixed deposits, it is advised to look for deposits with a longer tenure in mind. Interest rates have fallen by as much as 0.50 per cent to 0.75 per cent lower in the last few weeks.
The RBI is expected to lower interest rates even further in the days to come.