Fixed Deposits (FDs) are a reliable choice for assured returns. With FDs, you earn stable returns without taking on any risk.
Recently, the rise in FD interest rates has made this option more appealing to investors.
Certain small finance banks are offering FD returns of 9 percent or higher. North East Small Finance Bank (NESFB) is among these banks.
Returns on FD
North East Small Finance Bank has raised its FD interest rate by 50 basis points.
The bank now offers the highest interest rate of 9.75% to senior citizens for non-callable deposits ranging from Rs 1 crore to Rs 5 crore, with a tenure between 546 and 1111 days. Callable deposits of the same tenure earn an interest rate of 9.50%.
Convenience for Customers
Customers of North East Small Finance Bank can conveniently invest in FDs from their homes using mobile banking or net banking.
Interest from the FD account is credited to the depositor’s authorized savings account on a monthly or quarterly basis.
The bank provides additional services such as doorstep banking, auto renewal, partial withdrawal, reinvestment options, and loan/OD facilities.
However, a penalty of 1% is imposed by the bank in case of premature withdrawal of FDs.
No change in Repo Rate
Recently, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5 percent in its latest monetary policy review.
This marks the eighth consecutive time that RBI has maintained the repo rate steady. This decision aims to manage inflation amidst robust economic growth.
With the repo rate unchanged, the likelihood of a decrease in interest rates on bank deposits has also diminished.
