June 5, 2010. DBS Bank is offering the highest fixed deposit interest rates among all banks in India currently. DBS offers an interest rate of 8.75% for a term of 5 years for non-senior citizens for deposit amounts upto Rs. 15 lakhs. DBS Bank is a foreign bank headquartered in Singapore with 10 branches in India.

Among other banks, South Indian Bank, Bank of Rajasthan, City Union Bank, Catholic Syrian Bank are all offering attractive FD rate of 8.00%. These are all private sector banks.

Among public sector banks, State Bank of Travancore is offering the highest interest rate of 7.75% for a term of 8 to 10 years.

Visit Ratekhoj.com’s FD comparison section to compare and get the best fixed deposit rates in India at any time.

September 8, 2009. SBI, India’s largest bank, has announced that it is no longer offering the 1000 days fixed deposit. The 1000 days fixed deposit was earlier giving fixed depositors an interest rate of 7.25%. This change is effective from September 8, 2009.

With this change, SBI now offers a fixed deposit with a term of 2 to 3 years with an interest rate of 7.00% (senior citizens can get 0.50% additional interest for this deposit).

The highest interest rate offered by SBI currently is 7.75% for a fixed deposit term of 8 years to 10 years with senior citizens getting 8.25% for the same deposit period.

Comparison of fixed deposit rates at Ratekhoj indicates that the current highest fixed deposit rate offered by any bank in India currently is 8.25%. This rate is offered by Lakshmi Vilas Bank (for terms of 3 to 5 years as well as 5 to 10 years) and DBS Bank for a term of 5 years.

Lakshmi Vilas Bank is a private sector bank with a business of over Rs. 12, 600 crores while DBS Bank is a foreign bank headquartered in Singapore.

Considering public sector banks only, the highest fixed deposit rate currently is being offered by State Bank of Travancore. This interest rate of 8.00% is being offered for a term of 8 years to 10 years.

Interest rates for fixed deposits have been going down in recent months. While fixed deposit investors could earlier get between 10% and 11%, now the highest rates hover around 8.00% only. Most of the higher rates for fixed deposits are being offered for terms of over 3 years. Only Development Credit Bank is offering an interest rate of 8.00% for a short term of 1 year.

Compare and get the best fixed deposit rates currently being offered by going to Ratekhoj’s fixed deposits comparison page.

August 26, 2009. Tata Motors, India’s largest automobile company, is reintroducing its fixed deposit scheme with new interest rates. The fixed deposits are intended to raise around Rs. 1500 crores according to a company announcement. The fixed deposits are offered for terms of 2 and 3 years with a minimum deposit of Rs. 20,000. Interest rates for these fixed deposit are 8.00% for the 2 year term and 8.75% for the 3 year term.

The fixed deposit scheme has two investment options for the public:

Investment Option I: Scheme-A Quarterly Income Plan*

Period	Minimum Amount (Rs.)	Rate of Interest (p.a)
2 Years	20,000	8.00%
3 Years	20,000	8.75%
* Monthly interest option available in case of deposits of Rs. 1 lakh & above

 

Investment Option II: Scheme-B Cumulative Deposit Plan

Period	Minimum Amount (Rs.)	Rate of Interest*(p.a)	Maturity Value (Rs.)	Yield (p.a)
2 Years	20,000	8.00%	23,433	8.58%
3 Years	20,000	8.75%	25,930	9.88%
* Compounded quarterly

 

Additional amount of deposits will be accepted in multiples of Rs. 10,000. Interest and maturity value payments are subject to deduction of tax at source, wherever applicable. Deposits will be accepted from Individuals, Minors (through Natural Guardians), Non Resident Indians on non repatriation basis (through NRO account only) and HUFs.

Complete details of the scheme can be obtained from the Tata Motors fixed deposits page.

Comparison of the fixed deposit interest offered by Tata Motors and other institutions in India can help you get the best interest rates in the institution of your choice.

According to Tata Motors, it is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer. Tata Motors, the first company from India’s engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain.

August 24, 2009. L&T Finance Limited (”the Company”), promoted by engineering and construction giant Larsen & Toubro Limited and L&T Capital Holdings Limited and providing a range of financial services, will open on August 18, 2009, its first-ever public offer of 50,00,000 Secured Redeemable Non-Convertible Debentures (”NCDs”) of the face-value of Rs. 1,000 each. The NCD Issue aggregates to Rs. 500 crore, with an option to retain over-subscription up to Rs. 500 crore for issuance of additional NCDs, aggregating upto a total of Rs. 1,000 crore. The NCD Issue with various investment options and yield on Redemption of upto 10.50% (per annum) opens on August 18, 2009, and closes on September 4, 2009.

The NCDs offered through the Prospectus are proposed to be listed on National Stock Exchange of India Limited (”NSE”). The face value of Rs. 1,000 per NCD and tradable lot size of 1 NCD is expected to enhance liquidity and trading in the secondary market.

The NCDs have been rated ‘CARE AA+’ by CARE and ‘LAA+’ by ICRA. Instruments with a rating of ‘CARE AA+’ by CARE are considered to offer high safety for timely servicing of debt obligations. Such instruments carry very low credit risk. The rating of ‘LAA+’ by ICRA indicates high-credit-quality and the rated instrument carries low credit risk.

As compared to fixed deposits of 5 years duration, these L & T NCDs offer attractive interest rates.

Currently KTDFC (a company) offers the highest interest rate of 9.25 for a 5 year fixed deposit with a deposit amount of less than Rs. 25 lakhs which is the case for most retail fixed deposits. The next highest interest rate of 8.81% for 5 year fixed deposits for non-senior citizens is offered by T N Power Finance (also a company).

Among public sector banks in India, State Bankof Bikaner and Jaipur is offering the highest rate of 8.25% (annualized yield of 10.08%) for a FD term of 5-10 years. Among other banks, DBS Bank (a foreign bank) is also the same interest rate of 8.25% for a term of 5 years.

Investors in L & T NCDS can expect an annualized yield of 10.50% under Option 4 (details below) while the yield is lower under other options.

There are four investment options (please see the prospectus for complete details) for the L & T NCDs:

Option 1 (Quarterly interest payment): The face value is Rs. 1,000 and the minimum application is Rs. 10,000 (Retail) and Rs. 1,01,000 (NIIs and QIBs) and in multiples of Rs. 1,000 therein. The redemption date or maturity period is 60 months. from the deemed date of allotment. The coupon rate is 9.51% p.a. and the annualized yield is 9.85%. The interest payment is quarterly and the face value plus any interest that may have accrued is payable on redemption.

Option 2 (Semi-annual interest payment): The face value is Rs. 1,000 and the minimum application is Rs. 10,000 (Retail) and Rs. 1,01,000 (NIIs and QIBs) and in multiples of Rs. 1,000 therein. The redemption date or maturity period is 60 months from the deemed date of allotment. The coupon rate is 9.62% p.a. and the annualized yield is 9.85%. The interest payment is semi-annual and the face value plus any interest that may have accrued is payable on redemption.

Option 3 (Cumulative interest payment): The face value is Rs. 1,000 and the minimum application is Rs. 10,000 (Retail) and Rs. 1,01,000 (NIIs and QIBs) and in multiples of Rs. 1,000 therein. The redemption date or maturity period is 88 months from the deemed date of allotment. The coupon rate is 9.95% compounded annually and the annualized yield is 9.95%. The interest payment is cumulative and Rs. 2,005 per NCD is payable on redemption.

Option 4 (Semi-annual interest payment): The face value is Rs. 1,000 and the minimum application is Rs. 10,000 (Retail) and Rs. 1,01,000 (NIIs and QIBs) and in multiples of Rs. 1,000 therein. The redemption date or maturity period is 120 months from the deemed date of allotment. The coupon rate is 10.24% p.a. and the annualized yield is 10.50%. The interest payment is semi-annual and the face value plus any interest that may have accrued is payable on redemption.

August 21, 2009. Sahil Group, a company involved in the Hospitality industry and setting up of spas and resorts, has launched a fixed deposit scheme to raise funds.

The company is offering fixed deposits with terms of 1 year, 2 years and 3 years.

The interest rate offered for fixed deposits with a term of 1 year is 11% with senior citizens being offered 11.25%.

The interest rate for a term of 2 years is 12% (seniors: 12.25%) and the depositors are being offered 12.50% (seniors also get 12.50%) for a term of 3 years.

 The minimum amount of deposit for these schemes is Rs. 10,000 with multiples of Rs. 5000 accepted beyond the minimum amount.

Interest on these schemes will be paid half-yearly in September and March.

More details on this scheme can be obtained from the Sahil Group website.

Allahabad Bank, a public sector bank in India, has announced a cut in its fixed deposit rates effective from May 25, 2009. The interest rates have been cut across all deposit terms.

The highest interest rate offered by Allahabad Bank on fixed deposits now is 8.00% for fixed deposit term of 800 days for non-senior citizens (people below 60 years of age). The bank is also offering an interest rate of 7.75% for a term of over 5 years for non-senior citizens.

If you are looking for higher fixed deposit rates, there are several banks offering 9.00% for fixed deposits currently on different fixed deposit terms. These include State Bank of Indore, Karnataka Bank, Catholic Syrian Bank, Development Credit Bank, Tamilnad Mercantile Bank, Karur Vysya Bank and City Union Bank.

A comparison of fixed deposit rates at Ratekhoj can help you quickly find the best fixed deposit rates available in the market currently.

Dena Bank has cut its fixed deposit rates effective from May 5, 2009. Dena Bank is a public sector bank headquartered in Mumbai with over 500 branches.

With this change, Dena Bank has cuts the interest rates across various fixed deposit terms. The highest interest rate offered by Dena Bank is 7.75% for deposit terms of 3 to 5 years and 5 to 10 years. This rate applies to non-senior citizens. Senior citizens can get 8.25% for the same deposit periods. 

People will be better served to consider banks other than Dena Bank for their fixed deposits since there are many other banks offering more attractive interest rates on their fixed deposits. City Union Bank is offering the highest interest rate of 9.50% for non-senior citizens among all banks in India for fixed deposits. 

Visit Ratekhoj’s fixed deposits section to compare and get the highest interest rates currently.

It’s still possible to get interest rates of over 9.00% for your fixed deposits even though fixed deposit rates have been cut by banks repeatedly over the last several months.

Banks offering over 9.00% currently for non-senior citizens include City Union Bank, Development Credit Bank, Tamilnad Mercantile Bank, State Bank of Indore, Catholic Syrian Bank, South Indian Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Lakshmi Vilas Bank, Dhanalakshmi Bank and State Bank of Travancore. Among these banks only State Bank of Indore and State Bank of Travancore are public sector banks while the rest are private sector banks. The highest rate among all banks in India for fixed deposits is currently offered by City Union Bank. This rate of 9.50% is offered for a term of 3 years.

As compared to these banks, the highest interest rate offered by State Bank of India currently is only 8.25% for non-senior citizens.

For senior citizens, the highest interest rate for fixed deposits currently offered by City Union Bank. This rate of 10.00% is offered for a term of 3 years. Karnataka Bank, Dhanalakshmi Bank and City Union Bank are also offering an interest rate of 9.75% and there are several banks offering an interest rate of 9.50% for different terms.

Comparison of fixed deposit rates at Ratekhoj can help you maximize your fixed deposit investment returns.

State Bank of India, India’s largest bank, has cut interest rates on its fixed deposits by 0.25% across all terms. This change is effective from May 4, 2009.

With this change, the highest interest rate offered by SBI for fixed deposits is 8.25% for a term of 8 years to 10 years. Investors can also get an interest rate of 8.00% for fixed deposit terms of 1000 days and 5 years to 8 years.

Fixed deposit rates offered by SBI are not attractive at this time when compared with the fixed deposit interest rates offered by other banks in India. The highest interest rate on fixed deposits of 9.50% is currently offered by City Union Bank for a term of 3 years. Development Credit Bank, Tamilnad Mercantile Bank and City Union Bank are all offering interest rates of 9.25% for various terms.

Even among fixed deposits in public sector banks, the interest rates offered by SBI do not compare well. State Bank of Indore and State Bank of Travancore are offering an interest rate of 9.00% for terms of 5 years - 10 years and 1000 days respectively.

Investors can certainly get better rates on their fixed deposits in many banks (public sector, private sector and foreign banks) than those offered by SBI currently.

State Bank of India (SBI), India’s largest public sector bank, has cut its fixed deposit rates effective from April 13, 2009. The rate cuts range from 0.25% to 0.50% on various deposit terms. With these cuts, the highest interest rate offered by SBI is for a term of 8 years to 10 years with the rate being 8.50%. You can get 8.25% for fixed deposit terms of 1000 days and 5 years and above to less than 8 years.

Other banks are expected to follow SBI’s lead and cut their deposit rates soon.  

Bank of India has already announced a reduction in its interest rates from April 15. Corporation Bank, Bank of Baroda and UCO Bank are expected to follow soon in cutting the interest on FDs.

Given the impending cuts, fixed deposit investors would be well advised to take advantage of higher rates that are being offered currently. Good interest rates on fixed deposits can still be obtained from private sector banks such as Development Credit Bank and Tamilnad Mercantile Bank.

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