When we look back the previous years (1990 -1994) when the rate of interest for the fixed deposit was substantial higher than the present one currently hovering between 4.5 percent to max 6.5 percent depending upon the tenure of deposit and the type of the bank chosen. In the Nationalised Banks such as State Bank of India, Canara Bank, Union Bank of India, Punjab National Bank etc would offer you somewhat less closely matching the rate of interest as indicated above but some of the private Banks such as Yes Bank, Kotak Mahindra, IDFC etc would oblige you by paying 0.5 percent more than the Nationlised Banks.
However, the rate of interest for the senior citizens in all the Banks is 0.5 percent more than that of other citizens giving them some concessions considering their age factor.
Rate of interest is governed by the rules of RBI examining the different factors such as rate of inflation, market - condition, ease of currency in the market etc.
The rate of interest for Saving Accounts or Current Accounts for most of the Nationlised Banks are around 3.5 percent and 3.0 percent respectively.
It is altogether a different issue if the money saved is invested in some company deposits such as Bajaj Finance, Power Grid Ltd, Nagarjuna Finance for gaining higher levels of interest. The final yield may be attractive but in terms of safety, we may not rely upon these companies.