With credit disbursement picking up and the Reserve Bank of India (RBI) increasing its lending rates for banks (repo rate), banks and others are now offering higher interest rates on fixed deposits.
New Delhi : With credit disbursement picking up and the Reserve Bank of India (RBI) increasing its lending rates for banks (repo rate), banks and others are now offering higher interest rates on fixed deposits.
In case of senior citizens, fixed deposit rates go up to 8 per cent in some cases. During the period of Kovid-19, the interest on one year deposits on fixed deposits was in the 5 per cent band and now it has gone up to the 7 per cent band.
State Bank of India is offering 7.25 per cent interest
State Bank of India (SBI) offers 7.25 per cent interest to senior citizens on fixed deposits for a period of 1 to 2 years and also for a period of 5-10 years. For senior citizens, the interest rates come down to 6.75 per cent on fixed deposits ranging from three years to five years.
HDFC Bank is offering up to 7.75 percent interest
On its part, HDFC Bank offers senior citizens 7 percent on deposits for 1 year to 15 months and 7.75 percent on fixed deposits for five years one day to 10 years.
Homemaker Nitya V said, I am planning to foreclose my existing deposit and go for a new deposit, provided it proves profitable. If the Fixed Deposit is prematurely terminated, the bank will offer the applicable interest rate for the actual tenure.
Interest rates on SCSS increased
The government has revised the interest rates on Senior Citizens Savings Scheme (SCSS) to 8 percent for the fourth quarter of FY 2023. The SCSS interest rate is reviewed quarterly and is subject to change from time to time. Interest is also calculated and credited quarterly.
Similarly, non-banking finance companies (NBFCs) and housing finance companies have also increased their interest rates on fixed deposits.
