First of all I tried my best to make title as informative as possible. But I think it still need some change
So my current situation is, I am doing my last internship at a startup. They like my work and they want to hire me for a permanent position. I am also planning of getting a permanent position as soon I finish the internship. But the problem is I have not decided yet. Right now I am interviewing at other startups secretly.
One important problem with current employer is the salary they are offering for permanent position is below market rate for my skills level. They currently think I am not interviewing anywhere, so this give them a slight incentive to underpay me. I am planning of telling them that I am interviewing at some other places too (only just this, not details) and use this to get a better offer from them.
I've not decided anything so maybe I end up joining some other place while rejecting a better offer from them, or maybe I just end up staying here while getting a better offer.