4 Large Bank Fixed Deposits Where Interest Are More Than 8%

It's time that investor should take a serious look at bank fixed deposits, as interest rates have risen higher, in the last 1-year or so. In fact, deposits which would fetch not more than 6%, have now scaled to over 8%. Here are 5 bank fixed deposits that are attractive with interest rates between 8% to 9%.

IDFC First Bank

The interest rates on IDFC First Bank fixed deposits go as high as 8.25%, for 549 days to 3 years deposit for senior citizens. The interest rate is 7.75% for other set of depositors, who are not senior citizens. What we like about these deposits is the fact that the interest rates are high for a slightly longer tenure, making these deposits very attractive.

IndusInd Bank

The highest interest rates that IndusInd Bank offers on its fixed deposits is 7.75% for regular deposits and 8.25% for other depositors. Deposits from 18 months onwards until 3 years and 3 months offer the above mentioned interest rates. These are for withdrawable deposits that are less than Rs 2 crores. Again, very attractive interest rates if you compare them with peers as well.

Bandhan Bank

Bandhan Bank offers an interest rate of 8% on regular deposits and 8.50%, if you place deposits for senior citizens. The problem with these deposits is that the tenure is just 1 year, 7 months and 20 days for availing the maximum rates as listed above. The other tenures give you a much lower interest rate. This means you cannot lock money at high interest rates for a longer tenure, which is an advantage that IndusInd Bank fixed deposits offer.

RBL Bank

Here again the interest rate on fixed deposits crosses the 8% mark. If you place fixed deposits at RBL Bank for 725 days time period you receive 8.25% interest, if you are a senior citizen and 8% interest on regular deposits. The problem here again is that the tenure is rather short. What this means is that should interest rates fall going forward, you would might end-up with lower interest rates going forward. The best thing to do right now for investors would be to place money in fixed deposits that have a long-term tenure.

Investors should continue looking at attractive bank fixed deposits as interest rates have risen in the last few quarters. Our belief is that the reserve Bank of India would continue to hold interest rates steady until inflation sees a definite downside. It's unlikely that interest rates would fall in the next 6 months or so.