fd interest rates Today RBI has again increased the repo rate. After this increase, people’s loans are going to be expensive. On the other hand, there is good news for those who have got FD done.
The Reserve Bank of India (RBI) has increased the repo rate by 0.50% from today after a meeting of 3 days. With this increase, the EMI of all types of loans including home-car loan is going to increase. This increase has been done by RBI with the aim of controlling inflation. On one hand, where loans have become expensive, on the other hand there is good news too. Banks will increase the interest rate on deposits after increasing the repo rate. With this you will get more interest on savings account and FD. According to experts, once again in the coming days, interest will be available on FD fixed deposit at the rate of 8 percent.
There has been an increase of 1.4 percent in the last three months
8% interest on FD (Fix Deposit) is considered a good return. So what are the chances of the fixed deposit reaching 8 per cent? Experts believe that the chances of the FD rate reaching 8 percent will depend on how long this rate hike cycle is going to continue. RBI has increased the repo rate by 1.4% within the short span of last 93 days. RBI (Reserve Bank of India) has also indicated to withdraw the liberal stance.
Now getting so much interest on FD
If experts are to be believed, there is still room for an increase of 50.100 bps (Basis Points) in the coming 3.4 quarters. If this happens, then the interest rate on FD will reach close to 8 percent. Small banks will be ahead in increasing the interest rate on FD. Many major small banks have started offering FD rates of 6.5 percent to ordinary citizens and 7% or more to senior citizens. For example, the highest interest rate offered by IDFC First Bank, IndusInd Bank and Yes Bank to common citizens is 6.5 percent and senior citizens at 7 percent.
Rs 3436 interest will be available on one lakh
The repo rate has been increased thrice by the RBI since May. The repo rate has increased by 1.4% (40+50+50 = 140bps) within a period of 93 days. Three consecutive hikes in the repo rate have given impetus to the hike in FD interest rates.
Experts believe that in the coming days, banks will increase the interest rates on FDs rapidly. An increase of 0.50% in the repo rate means that the interest rate on fixed deposits will increase from 6.5% to 7%. If you have done it for 5 years then you will get Rs 3436 additional interest on FD of Rs 1 lakh.
