Bank FD Interest Rates: Many experts say that despite RBI’s efforts, most banks are facing a shortage of liquidity. Therefore, they will not take any such step that people reduce FDs.
Bank FD Interest Rates: After about 5 years, the Reserve Bank of India (RBI) has reduced the repo rate by 0.25% and brought it to 6.25%. After this, there is a heated discussion that all loans including home and car loans will become cheaper and interest rates on fixed deposits will be reduced. However, many experts believe that this is not going to happen immediately. Experts say that if we look at the past track record, then even after the RBI’s reduction, the banks took a lot of time to give the gift of cheap loans. Not only this, the full benefit of the reduction made by RBI was not passed on to its customers. Due to this, this time it cannot be expected that the banks will immediately give the benefit of this reduction to their customers.
Banks are struggling with liquidity shortage
Many experts say that despite RBI’s efforts, most banks are struggling with liquidity shortage. Therefore, they will not take any such step that people reduce FDs. Therefore, there is no possibility of immediate reduction in interest rates on FDs. Yes, if RBI makes another cut in the next policy, then there can be a reduction in interest rates on FDs. First, short-term interest rates on FDs will be reduced. There will be no major change in long-term FDs.
It is wise to get short-term FDs
Experts say that it is wise to get FDs for 1 to 3 years. Even if banks reduce interest rates in the coming days, they will first do so on short-term FDs. Therefore, it will be beneficial to get FDs in time. Investors should note that the recent 25 basis points cut by RBI is a sign of a departure from the high interest rate environment of the last four years. This period saw frequent interest rate hikes, which led to a rise in loan rates, while also making fixed deposits (FDs) more attractive for savers. To attract deposits and maintain liquidity amid rising borrowing costs, banks had to offer higher FD rates.
Most Read Articles:
- Income Tax Department is sending SMS alerts regarding TDS, check immediately
- Bank FD Rates: Last chance to earn big money from FD, these banks are offering highest interest on FD, check rates here
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
