Bank fixed deposit (FD) rates had never been so good in a decade as at present. FD rates for some of the Banks are up to 10.5% for senior citizens (one who has completed 60 years of age) and 10% for general citizens. With the stocks plummeting, it is now the time to park a part of your hard earned money to bank FDs. And the magic is that high interest rates are available for fairly long periods of maturity. A glance below will help you to make a decision. I have given my choice top downwards.
* Bank Of India: By far the most paying bank with wonderful combinations of term deposit products.
a) For deposit of 400 days, the bank gives you an interest of 10% for general citizens (GC) & 10.5 % to senior citizens (SC) one time on maturity.
b) For all other deposits ranging from 1 year up to 10 years, the rates are 9.75% for GC and 10.25% for SC.
c) For deposits under section 80C for Tax benefits also, the above deposits rates are applicable, subject to condition that it should be for a period of at least 5 years.
Interests are payable at quarterly rests or compounded quarterly for payment at maturity as per your choice. You can even get monthly interests, turning this instrument into a truly MIP over periods as high as 10 years.For more click
http://www.bankofindia.com/rupeetermdeposit.aspx
*Allahabad Bank: This bank closely follows Bank of India but lags behind in 80C instrument particularly. A glimpse below
a) From 1 year to less than 3 years, the rates are 9.75% for GC and 10.25% for SC.
b) From 3 years to less than 5 years, the rates are 9.25% for GC and 9.75% for SC
c) From 5 years up to 10 years, 9.00% for GC and 9.5% for SC
d) For Tax efficient scheme 80C, the rate is 9% for GC and 9.5% for SC
Interest payment or compounding systems are same as that of Bank of India.
*UCO Bank: This bank gives particularly high interest to one year FD only as follows: –
a) For one year deposits the interest rate in 10.10% for GC and 10.60% for SC
b) For FD of more than a year, the rate is 8.75% for GC and 9.25% for SC.
c) For 80C Tax Saving scheme, the rate is 8.75% for GC and 9.25% for SC
*State Bank of India: The largest bank in India (both Private and Public Sectors combined) also gives high interest rate except in 80C tax savings instrument as indicated below: –
a) From 1 year to less than 2 years, 10% for GC and 10.5% for SC
b) From 2 years to less than 3 years, 9.5% for GC and 10% for SC
c) From 3 years to less than 5 years, 9.75% for GC and 10.25% for SC
d) From 5 years up to 10 years, 9.25% for GC and 9.75% for GC
e) For 80C Tax savings Scheme, the rates are poor, 8% for GC and 8.5% for SC
*Karur Vysya Bank: The bank is in Private Sector and gives slightly higher interest for 1 to 3 years periods. It is 10.25% for GC and 10.75% for SC over this period. The bank also has a special senior citizen spouse scheme which gives 1% higher interests in case of unfortunate death of one of the spouse.Click the link below for more on this.