FD Rates: FD interest rates remain at high levels. In the last several days, banks have increased the interest rates on FDs of different time periods and they are also offering interest of seven percent or more.
FD Rates: Due to rising interest rates, more people than ever are investing in fixed savings schemes (FD). According to the Reserve Bank of India (RBI), the share of such investment vehicles in total bank deposits has increased to 60.3 percent in December 2023. This figure was 57.2 percent in March 2023.
According to RBI data, the share of FD in the total increase in deposits during April-December 2023 was about 97.6 percent. During this period, the share of current account and savings account deposits declined. The central bank says that rising returns on fixed deposits are bringing structural changes in bank deposits.
More money deposited in higher interest rate category: According to RBI, money is being deposited in higher interest rate category. The share of FDs with interest rates above seven percent in total fixed deposits increased to 61.4 percent in December 2023. This figure was 54.7 percent a quarter before and 33.7 percent in March 2023.
FD is the favorite investment of Indians: You can estimate the popularity of FD in the country from the fact that an amount of about Rs 103 trillion (about Rs 103 lakh crore) is deposited in a total of 2 crore 42 lakh FDs. That means an average of Rs 4.25 lakh has been invested per FD in the country. This has come to light in a survey. The survey also said that FD is the most preferred investment option for the people.
FD interest rates at high level: At present, FD interest rates remain at high level. In the last several days, banks have increased the interest rates on FDs of different time periods and they are also offering interest of seven percent or more. Investment experts say that at present this is the best opportunity for consumers to invest in FD.
That’s why interest rates have increased: Actually, the Reserve Bank has not made any change in the repo rate for the fifth time. Repo rates are currently at the level of 6.5 percent. Whenever there is any change in it, it directly impacts the interest rates available on FD. When the repo rate is reduced, the interest received on FD also reduces. When there is an increase, banks increase interest to attract cash with them.
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