A few days back the Reserve Bank of India (RBI) held an unscheduled meeting on May 4 and surprised everyone by announcing a 40-basis-point hike in the repo rate.
Soon after the central bank’s decision to hike the repo rate, banks also decided to increase the interest rate on fixed deposits (FDs). When repo rates are increased, this can make savings attractive as customers can get better interest rates on their FDs. Fixed deposits have emerged as one of the most famous means of saving money. Fixed deposits are not only a safe investment option but can also provide attractive returns. You do not need to put in much effort to open your FD in banks.
What is FD?
In a fixed deposit, you should make a lump sum investment with your respective bank at an agreed rate of interest for a fixed period. When the tenure is over, you become eligible to get the amount invested along with compound interest. Since FDs have emerged as a safe investment option, a large number of people in India prefer to invest their money in bank FDs. The reason for the safe and secure investment of FD is that you can get guaranteed returns. The return on FD remains constant when you open the account.
If the interest rate decreases after opening an FD account, you will continue to be eligible to receive the interest rate decided initially. Experts believe that FDs are safer than other investments like equities as one can face volatility and volatility in the market.
You can do FDs with a flexible tenor that can range from a minimum of 7 days to a maximum of 10 years as per your choice.
There are some banks that are offering the highest interest rate on FD and you can start your investment with them. you can consider on the banks mentioned below:
IndusInd Bank: The bank offers an interest rate of 6.00% for FDs maturing in less than 1 year to 6 months. IndusInd Bank offers an interest rate of 6.50% for FDs with a tenure of 2 years.
RBL: You can open your Fixed Deposit account with RBL and enjoy some high interest rates on FDs ranging from 12 months to less than 24 months. This bank gives an interest rate of 6.25%. The bank offers an interest rate of 6.50% on FDs for a tenure of 2 years.
Bandhan Bank: The bank offers an interest rate of 5.75% on FDs for a tenure of 1 year. The bank will give you an interest rate of 6.25% for FDs with a tenure of two years.
IDFC Bank: You can also avail an interest rate of 5.75% for FDs with a tenure of 1 year with this bank. It offers the same interest rate for FDs of two years tenor. You can also avail an interest rate of 5.75% for FDs with a tenure of 1 year with this bank. It offers the same interest rate for FDs of two years tenor.
