The interest on Fixed Deposit will be 10%. Many small finance banks in the country are offering interest of 9.5 percent. In such a situation, if RBI increases the repo rate, then the 9.5 percent interest available on FD can reach 10 percent. However, this is expected to happen..
Will the common man’s dreams come true? The interest on Fixed Deposit will be 10%. Many small finance banks in the country are offering interest of 9.5 percent. In such a situation, if RBI increases the repo rate, then the 9.5 percent interest available on FD can reach 10 percent. However, there is little hope of this happening. All eyes are on the announcement of the Monetary Policy Committee of the Reserve Bank of India (RBI) to be held every two months on December 8, 2023. Where there seems to be little possibility of any increase in rates. However, the possibility of rate cut is also less now. In the last monetary policy meeting of RBI, Shaktikanta Das had said that there is still scope for further increase in interest rates.
FD Interest Rate: Will the interest rates on FD of small finance banks reach 10%?
Now is the time for rising interest rates over or can common people expect FD interest rates to increase further? Will interest rates on FD reach 10% in the coming months? This is a big question but its probability is negligible. Experts believe that there are high chances of RBI not changing the interest rates. If this happens then there will be less expectation of change in FD interest rates. There will be no change in FD interest rates unless RBI increases the repo rate. Many small finance banks are offering 9.2% to 9.5% interest on FD to senior citizens. One of these, Unity Small Finance Bank, is offering 9.5% interest rate to senior citizens on FD maturing in 1001 days. Fincare Small Finance Bank is offering 9.21% interest to senior citizens on FD of 750 days.
Will RBI increase the repo rate?
Banks decide FD interest rates on the basis of repo rate. FD interest rates and repo rates move almost simultaneously. When the repo rate increases, usually the interest rates on FD also increase. Similarly, when the central bank cuts the repo rate, FD rates also reduce. Most experts believe that there is little hope of change in interest rates. Repo rate may remain at 6.50 percent. Now the big question is that if RBI does not make any change in the interest rates in the monetary policy meeting, will the banks increase the interest rates further? According to experts, the interest on FD does not depend on the decision of RBI. The bank’s own cost also determines the interest rates on FD.
