In the wake of the Reserve Bank of India’s (RBI) Monetary Policy Committee’s decision to maintain the repo rate at 6.5 percent, the landscape of fixed deposit (FD) interest rates is undergoing significant shifts.
While concerns over potential rate reductions loom, experts are advocating for seizing the opportunity to secure FDs at higher rates, making this a prime time for investments.
Banks Elevating FD Interest Rates: Amidst this backdrop, four prominent banks have recently upped their FD interest rates, benefitting both senior citizens and the general populace.
As discussions around the ideal investment vehicle heat up, individuals are debating the merits of the Senior Citizen Savings Scheme versus traditional Fixed Deposits.
Interest Rate Hikes by Key Banks:
Axis Bank FD Schemes: Private sector institution Axis Bank has announced enhanced FD rates for senior citizens, in effect until August 14.
With a range spanning 3.5 percent to 8.05 percent, these rates are offered on deposits maturing over 7 days to 10 years.
The highest rate of 8.05 percent is reserved for deposits maturing between 16 to 17 months, with deposits under Rs 2 crore being eligible.
Canara Bank FD Schemes: As of August 12, the public sector Canara Bank has introduced a spectrum of FD interest rates ranging from 4 percent to 7.75 percent, catering to diverse maturity periods.
Federal Bank FD Schemes: In a celebratory gesture for the 77th Independence Day, Federal Bank has decided to heighten its FD interest rates.
Effective from August 15, the bank offers an impressive 8.07 percent on 13-month term deposits.
Suryoday Small Finance Bank FD Schemes: Suryoday Small Finance Bank has hiked interest rates on 5-year FDs by 0.85 percent (85 basis points) this month.
The bank now extends interest rates ranging from 4.50 percent to 9.10 percent for FDs maturing within 7 days to 10 years for senior citizen customers.
Comparing Senior Citizen Savings Scheme: Alongside these revamped FD rates, the Senior Citizen Savings Scheme garners attention.
Administered by the government, this scheme offers a fixed interest rate of 8.2 percent.
Individuals above 60 years or those who have retired post 55 years are eligible to invest in this avenue.