Fixed Deposit Rates: RBI has increased the repo rate by 1.40 percent for the third consecutive time. After the recent hike, the repo rate has reached 5.40 percent. Due to the increase in the repo rate, not only the loan has become expensive but the rate of interest on FD has also increased.
On Wednesday, August 17, three banks announced an increase in FD rates. Even before this, some banks had announced an increase in the interest rates on deposits in FDs. After the increase, you can now earn up to 7.5 percent interest on Fixed Deposits.
The rate of interest on FD in Ujjivan Small Finance Bank has increased. The bank is offering an interest rate of 7.5% on its FDs with three tenures – 75 weeks, 75 months and 990 days. The new rates have come into effect from 9 August 2022. Senior citizens will get 75 basis points more interest in all these tenures.
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FD rates increased in these banks too
Kotak Mahindra Bank has increased the rate of FD by 0.15 percent on Wednesday and will now get interest at the rate of 5.75 percent on one-year deposits and 5.90 percent on three-year deposits. The new rates are effective from 17 August 2022.
Punjab National Bank (PNB) has increased the interest rates of less than Rs 2 crore with effect from August 17, 2022. Now deposits of up to two years in PNB will get interest at the rate of 5.50 percent and for three years deposits at the rate of 5.60 percent. The bank will give 5.75 percent interest on deposits of more than three.
Private sector giant ICICI Bank is getting more interest on FD from August 9. In ICICI Bank, deposits of Rs 2-5 crore will get interest at the rate of 5.25 percent-5.90 percent.
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Start of new scheme in these banks
In the country’s largest bank SBI, a new term deposit Utsav Deposit has started in it. This scheme has been started on the completion of 75 years of the country’s independence. In this, investors will get interest at the rate of 4.55%-6.15%, depending on the tenure, on deposits of less than Rs 2 crore made between August 15 and October 30, 2022. Senior citizens will get 0.50 percent more interest.
Bank of Baroda has introduced Baroda Tiranga Deposit Scheme on 16th August. Under this scheme, 444 days deposits of less than Rs 2 crore made between August 16 and December 31, 2022 will get interest at an increased rate of 5.75 per cent-6.25 per cent. Interest will be available at the rate of 6-6.50 percent on deposits of 555 days.
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Features of investing in Fixed Deposit
– Investing in FDs is considered to be quite safe as compared to other investment options and it does not show any impact on market volatility.
– In this, interest is earned on investment over a fixed period.
– You can invest your money in a flexible tenor of ten years
– There is no limit on the maximum deposit.
– Senior citizens get higher rate of interest on deposits in FD account.
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