Bank FD: Before Ganesh Chaturthi, good news has come for the customers investing in fixed deposits. Most banks of the country can increase FD interest rates. If you are planning to invest in FD then this can prove to be a good opportunity for you.
This is the reason
On one hand, banks are going to benefit even if Reserve Bank of India adopts incremental cash ratio. At the same time, before the festive season, most of the banks are preparing to remove the asset-liability mismatch to attract customers and meet the increasing demand. Apart from this, due to faster growth in loans as compared to deposits, there is a possibility of increase in interest rates on deposits.
How much can interest rates increase?
Experts believe that many banks can increase interest rates by 25 basis points i.e. 0.25 percent to attract customers from FD. Let us tell you that despite there being no change in the repo rate, many banks have changed the interest rates of fixed deposits. Public sector Punjab National Bank is also included in this list.
Where is getting more interest?
At present many small finance banks are offering attractive interest on FD, which is much higher than government banks. Unity Bank is offering 9 percent interest on a tenure of 1001 days. At the same time, Government Bank Punjab and Sindh Bank is offering maximum interest rate of 7.4 percent on FD, which is the highest among public sector banks.
