9% Yield On These Fixed Deposits From A Foreign Bank Is Very Good

Interest rates have been steadily on he rise over the last few years. In fact, the Reserve Bank of India has now hiked repo rates or rates at which it lends money to banks by a whopping 250 basis points. This has led interest rates in India to jump higher. Almost all banks have hiked their deposit interest rates.

Deutsche Bank fixed deposits offers as much as 9% yield on deposits of 5-years

Deutsche Bank in India, too has hiked its interest rates. The bank now offers interest rate of 7.50% over the 5-year tenure. Since compounding applies, the yield on the deposits jump to 9% over the 5-year tenure. The German Bank also has a 1-year, 2-years and 3-years tenure deposits wherein it offer an interest rate of 7.50%. For Senior citizens Deutsche Bank offers an extra 0.25% on fixed deposits. The Deposits of the bank are relatively safe being a large foreign bank. Investing for a period of 3-5 years is the best option right now.

What is the kind of tenure that is the best for Deutsche Bank fixed deposits?

We would suggest that investors look for tenures that are longer term. If you ask us, we believe that the Reserve Bank of India would mostly have completed hiking its interest rates. So, there could be a maximum of 0.25 basis points hike in interest rates before the RBI goes for a long pause. This means in the next 1-2 years, we could have a scenario where interest rates actually start to fall. So, if you place your deposits for 1-year and should interest rates fall, you would have to lock money at lower rates next year. On the other hand, if you have invested for 3-5 years, you do not have to worry about declining interest rates.

Apart from this, the one thing that investors should also note is that they should look for safe deposits. By and large the belief is that bank deposits are safe, which is actually the case. At the moment, we have not had any issues with banks, so go ahead and invest.