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.

Bank of India, a public sector bank in India, has announced reductions in fixed deposit rates effective from April 15, 2009. Customers still have time to book their fixed deposits at the existing higher interest rates until that date.

The interest rate cuts range from 0.25% on fixed deposit term of 7-14 days to a reduction of 1.00% on fixed deposit term of over 5 years. The following table illustrates the new rates in comparison to existing interest rates. 

Maturity	Rates for FD Amounts Less than Rs. 15 Lakhs
	Existing Rate	New Rate effective from April 15, 2009
07 days to 14 days	3.25	3.00
15 days to 30 days	4.25	3.25
31 days to 45 days	4.50	3.50
46 days to 90 days	6.00	5.00
91 days to 179 days	6.25	5.50
180 days to 269 days	7.25	6.50
270 days to 364 days	7.50	6.75
1 year to less than 2  years	8.00	7.25
2 years to less than 3 years	8.25	7.25
3 years to less than 5 years	8.25	7.25
5 years and above	8.25	7.25

 

Other banks are also expected to cut their fixed deposit interest rates in the coming days. According to an article in Hindustan Times, the chairman of Corporation Bank said that fixed deposit rates would be cut in Corporation Bank also from April 15. Hence, people interested in investing in fixed deposits would be advised to lock in their rates as soon as possible.

City Union Bank term deposit rates have been reduced effective from April 2, 2009. City Union Bank is a private sector bank in India with over 180 branches spread out mainly in the southern states of Tamilnadu, Andhra Pradesh and Karnataka with some branches in Maharashtra and Gujarat.

Fixed deposit rates for a term of 5 years have come down from 9.00% to 8.00% while those for a term of 3 to 5 years have come down from 9.50% to 9.00. The latest fixed deposit rates offered by City Union Bank as of April 2, 2009 are as follows:

 

Duration	Rate	Deposit Amount Rules	Additional Interest for Seniors
15 days-45 days	5.50%		-
46 days-90 days	6.00%		-
91 days-180 days	7.00%		-
181 days-1 year	8.50%		-
1 year-3 years	9.75%		0.25%
3 years-5 years	9.00%		0.50%
5 years-10 years	8.00%		0.50%

 

Term deposit interest rates in India have been cut by a number of banks in India recently. South Indian Bank (for a term of 1170 days), Development Credit Bank (for a term of 1 year) and Tamilnad Mercantile Bank (for a term of 1-3 years) are offering the highest fixed deposit interest rates in India of 10.00% as of April 2, 2009.

DBS Bank, a foreign bank operating in India, has announced significant cuts in its fixed deposit interest rates effective from April 1, 2009.

The most significant cut has been made for deposit periods of between 1 and 2 years where the interest rate offered has been cut from 9.00% to 7.25%.

The interest rates for a deposit period of 271 days to 1 year has gone down to 6.00% from 7.25% being offered earlier.

The following table shows the latest interest rates offered on FDs by DBS Bank:

 

Duration	Rate	Deposit Amount Rules	Additional Interest for Seniors
7 days	4.10%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
7 days	3.00%	Must be atmost Rs. 15 lakhs	0.50%
8 days-14 days	3.40%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
8 days-14 days	3.00%	Must be atmost Rs. 15 lakhs	0.50%
15 days-29 days	4.05%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
15 days-29 days	3.75%	Must be atmost Rs. 15 lakhs	0.50%
30 days-45 days	5.00%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
30 days-45 days	4.50%	Must be atmost Rs. 15 lakhs	0.50%
46 days-60 days	5.00%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
46 days-60 days	4.50%	Must be atmost Rs. 15 lakhs	0.50%
61 days-90 days	5.15%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
61 days-90 days	5.00%	Must be atmost Rs. 15 lakhs	0.50%
91 days-180 days	5.25%	Must be atmost Rs. 15 lakhs	0.50%
91 days-180 days	5.25%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
181 days-270 days	6.00%	Must be atmost Rs. 15 lakhs	0.50%
181 days-270 days	5.85%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
271 days-1 year	6.30%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
271 days-1 year	6.00%	Must be atmost Rs. 15 lakhs	0.50%
1 year-2 years	9.00%	Must be between Rs. 15 lakhs - Rs. 50 lakhs	-
1 year-2 years	7.25%	Must be atmost Rs. 15 lakhs	0.50%
1 year-2 years	7.00%	Must be between Rs. 50 lakhs - Rs. 1 crore	-
2 years-3 years	7.50%	Must be atmost Rs. 15 lakhs	0.50%
2 years-3 years	7.50%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
3 years-4 years	7.50%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
3 years-4 years	7.75%	Must be atmost Rs. 15 lakhs	0.50%
4 years-5 years	8.00%	Must be between Rs. 15 lakhs - Rs. 1 crore	-
4 years-5 years	7.75%	Must be atmost Rs. 15 lakhs	0.50%
5 years	8.00%	Must be atmost Rs. 15 lakhs	0.50%
5 years	8.00%	Must be between Rs. 15 lakhs - Rs. 1 crore	-

 

DBS Bank based out of Singapore is one of the largest financial services groups in Asia, providing the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. With one of the highest credit ratings in the region, DBS is ready to serve customers in 16 markets as a bank that specialises in Asia. It has only 6 branches in India.

The rates shown above are those effective on April 1, 2009. You can compare current fixed deposit rates here to get the best fixed deposit rates in India.

Allahabad Bank, a public sector bank in India, has announced interest cuts on their fixed deposits effective from April 1, 2009. The cuts impact a number of their fixed deposit terms and affect fixed deposit amounts below Rs. 1 crore only.

The highest interest rate offered by Allahabad Bank of their fixed deposits after this change is a rate of 9.00% for a term of 900 days which is a term of about 30 months. This applies to non-senior citizens who are below 60 years age. Senior citizens get a interest rate of 9.50% for the 900 days deposit.

The second highest fixed deposit interest offered by Allahabad Bank is 8.50% for a term of 850 days applicable to non-seniors with senior citizens getting 9.00% for the same term.

Interest rates have been cut from 5.50% to 5.25% for terms between 46 days and 90 days. Rates have been reduced by 0.50% for a term of 91 days to 179 days with the interest now being 6.25% down from 6.75%.

The fixed deposit interest rates have been cut by Allahabad Bank of all terms ranging from 6 months to 10 years by between 0.25% and 0.50%.

The latest interest rates offered by Allahabad Bank are available at Ratekhoj. These interest rates can also be compared with fixed deposit interest rates of other institutions in India.

 Are you looking for 80c investment avenues for next financial year? Bank term deposits have been designated as eligible for 80c deductions from assessment year 2007-2008 onwards.

These fixed deposits have a minimum term of 5 years and you can invest a maximum of Rs 1 lakh per year under these schemes.

Attractive interest rates are offered by banks for 80c fixed deposits. Tamilnad Mercantile Bank, a private sector bank, is offering the best interest rate currently of 9.75% for non-seniors. Karnataka Bank and Lakshmi Vilas Bank, both private sector banks, are offering the next highest interest rate of 9.50%.

Tamilnad Mercantile Bank, Karnataka Bank and Lakshmi Vilas Bank are all offering 10.00% for senior citizens under the tax savings term deposit schemes and this is the best rate offered for seniors.

 City Union Bank, a private sector bank in India, is offering the highest interest rate in India for fixed deposits as of March 24, 2009. It’s offering a interest rate of 10.25% for a fixed deposit period of 2-3 years for non-senior citizens.

For senior citizens, the highest interest rate offered is 10.50%. It’s offered by Development Credit Bank for a period of 1 year, Tamilnad Mercantile Bank for a period of 1-3 years, Lakshmi Vilas Bank for a deposit period of 2-3 years and City Union Bank also for a deposit period of 2-3 years. All these are private sector banks.

IDBI (term: 1100 days) and State Bank of Bikaner and Jaipur (term: 2-3 years) are offering the best interest rate of 9.25% for fixed deposits in public sector banks for non-senior citizens.

FD interest rates have been on the decline in recent months but investors can still get attractive interest rates as shown by the above rates. Compare fixed deposit interest rates here to get the highest returns for your investments.

Feb 15, 2009, Ratekhoj.com. Banks in India have reduced their fixed deposit rates in recent weeks. For non-senior citizens (people below the age of 60), City Union Bank, a private sector bank, is offering the highest interest rate of 10.60 % for fixed deposits. This interest rate is being offered for a deposit period of 2 years. Development Credit Bank, also a private sector bank, is offering the next best interest rate of 10.50% on fixed deposits for non-senior citizens. This rate is being offered for a period of 1 year as well as deposit periods of over 1 year but less than 3 years. IDBI Bank is offering the highest fixed deposit interest rate among public sector banks of 9.50% for non-senior citizens for a term of 1100 days.

The highest fixed deposit rates for non-senior citizens as compiled by Ratekhoj.com based on their durations as of February 15, 2009 are as follows:

Duration	Institutions	Rate
3 months	Development Credit Bank	7.50
6 months	Development Credit Bank	8.50
1 year	Development Credit Bank City Union Bank Tamilnad Mercantile Bank	10.50
2 years	City Union Bank	10.60
3 years	Development Credit Bank Lakshmi Vilas Bank	10.50
4 years	City Union Bank	10.25
5 years	City Union Bank	10.25
>5 years	Tamilnad Mercantile Bank Lakshmi Vilas Bank	10.00

The top 20 fixed deposit rates for non-senior citizens as compiled by Ratekhoj.com across all FD terms as of February 15, 2009 are as follows:

Duration	Institutions	Rate
2 years	City Union Bank	10.60
1 year	Development Credit Bank	10.50
366 days-3 years	Development Credit Bank	10.50
1 year-2 years	City Union Bank	10.50
2 years-3 years	Lakshmi Vilas Bank	10.50
1 year	Tamilnad Mercantile Bank	10.50
2 years-5 years	City Union Bank	10.25
366 days-3 years	Development Credit Bank	10.25
400 days	IndusInd Bank	10.25
1 year-3 years	Tamilnad Mercantile Bank	10.25
1 year-2 years	Lakshmi Vilas Bank	10.25
1000 days	IndusInd Bank	10.25
1 year-2 years	Catholic Syrian Bank	10.10
1170 days	South Indian Bank	10.00
5 years-10 years	Tamilnad Mercantile Bank	10.00
3 years-5 years	Tamilnad Mercantile Bank	10.00
3 years-5 years	Lakshmi Vilas Bank	10.00
5 years-10 years	Lakshmi Vilas Bank	10.00
2 years-3 years	Catholic Syrian Bank	9.85
1 year-539 days	Jammu & Kashmir Bank	9.85

For senior citizens (people over 60), the best fixed deposit rate of 11.10% is offered by City Union Bank, a private sector bank. This interest rate is offered for a term of 2 years. The next highest rate of 11.00% is offered by Development Credit Bank for a term of 1 year as well as a term of 366 days to 3 years. Development Credit Bank is a private sector bank in India. Among public sector banks, IDBI Bank is offering the highest fixed deposit interest rate of 10.00% for a deposit period of 1100 days.

The highest fixed deposit rates for senior citizens as compiled by Ratekhoj.com as of February 15, 2009 based on their durations are as follows:

Duration	Institutions	Rate
3 months	Development Credit Bank	8.00
6 months	Development Credit Bank	9.00
1 year	Development Credit Bank City Union Bank	11.00
2 years	City Union Bank	11.10
3 years	Development Credit Bank Lakshmi Vilas Bank	11.00
4 years	City Union Bank	10.75
5 years	City Union Bank	10.75
>5 years	Lakshmi Vilas Bank	10.50

The top 20 fixed deposit rates for senior citizens as compiled by Ratekhoj.com across all FD terms as of February 15, 2009 are as follows:

Duration	Institutions	Rate
2 years	City Union Bank	11.10
1 year	Development Credit Bank	11.00
366 days-3 years	Development Credit Bank	11.00
1 year-2 years	City Union Bank	11.00
2 years-3 years	Lakshmi Vilas Bank	11.00
2 years-5 years	City Union Bank	10.75
366 days-3 years	Development Credit Bank	10.75
400 days	IndusInd Bank	10.75
1 year-3 years	Tamilnad Mercantile Bank	10.75
1 year-2 years	Lakshmi Vilas Bank	10.75
1000 days	IndusInd Bank	10.75
1 year	Tamilnad Mercantile Bank	10.75
1 year-2 years	Catholic Syrian Bank	10.60
3 years-5 years	Lakshmi Vilas Bank	10.50
5 years-10 years	Lakshmi Vilas Bank	10.50
2 years-3 years	Catholic Syrian Bank	10.35
1 year-539 days	Jammu & Kashmir Bank	10.35
1170 days	South Indian Bank	10.25
2 years-3 years	Catholic Syrian Bank	10.25
540 days-2 years	Jammu & Kashmir Bank	10.25

People interested in fixed deposit investments can compare fixed deposit rates at Ratekhoj for different durations to get the best interest rates.

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