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.

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