Interest rates on fixed deposits in 2015 have dropped by almost 0.75 per cent to 1 per cent, as the Reserve Bank of India has cut interest rates or repo rates.

With a drop in inflation, the country's central bank has dropped repo rates by 125 basis points or 1.25 per cent. This has led to a drop in lending rates, as also a drop in fixed deposit interest rates.

Take a look at some of the best fixed deposits with highest interest rates in India:

1) RBL Bank

RBL Bank was formally known as Ratnakar Bank. It is soon slated to go public sometime later next year. The bank's fixed deposits are one of the best in the banking industry. Take a look at how the RBL Bank fixed deposits compare over various tenures:

A 9 per cent interest would be the best among banks, unless you are also comparing the smaller cooperative banks. With interest rates falling, it would be a good idea to lock money in Ratnakar Bank fixed deposits at 9 per cent. Interestingly, with compounding, the yields can go as high as 9.84 per cent on the 36 month deposits.

2) Bandhan Bank Fixed Deposits

Bandhan Bank is the newest bank on the block, after getting approval from the Reserve Bank of India last year. The bank was started earlier this year. Like RBL Bank, Bandhan Bank's fixed deposits are the best bank fixed deposits in the country in terms of interest rates.

3) Mahindra Finance Fixed Deposits

The interest rates on Mahindra Finance Fixed deposits, may not be the best, but, they are better when compared to many private and public sector banks. The yields on 36 months works to near 9 per cent, which is pretty decent. The interest rates on all the tenures are pretty much the same.

4) KTDFC Fixed Deposits

Until a few months back, KTDFC, the government of Kerala owned entity was offering as much as 10 per cent interest rate. It has dropped interest rates sharply in the last few months. Even then the below mentioned interest rates by KTDFC on its fixed deposits are very good.

5) Shriram Transport Finance Corporation

Shriram Transport Finance Corporation offers an interest rate of 8.65 per

cent for 36 months. This is pretty good considering present rates of interest. The 12 and 24 months tenure come with slightly lower interest rates.

Conclusion

Interest rates in the economy are falling. It's time investors invested in the best fixed deposits with high interest rates for a longer tenure. We wish to emphasize again that interest rates in the next one year could fall further. Hence, place deposits for a period of atleast 2-3 years. This would help, if you have interest falling in the years to come.

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