Finally the barrier has been breached!! With the latest round of rate hikes by RBI to reign in the inflation the Term Deposit Rates or the Fixed Deposit Rate has gone past the 10% mark.
Karur Vysya Bank is taking 1 to 2 year deposits at the 10% mark – http://www.kvb.co.in/pdf/Term_Deposits/deposits_rates.pdf
And if you like the safety in state backing then State Bank of Travancore (SBT) is your best bet – taking deposits @ 9.6% for deposits as long as 10 years – http://www.statebankoftravancore.com/interests.htm. This is an extremely beneficial proposition. No other banks are taking deposits for more than 2 year time frame and offering the same rates as SBT.