Interest rates are clearly on the way down. The State Bank of India has lowered the interest rate on savings bank accounts to 3.5%. Fixed deposit rates are still around 6.25% for most people but are surely headed lower.
This is a reduction of about 25% of what investors were earning on their fixed deposits just a couple of years back. Don't be surprised if, in about a year or so, most banks are paying 3.5% on savings accounts and 5-5.5% on fixed deposits.