Is it the ideal time to invest in Fixed Deposits (FD)? Check interest rates of leading banks
New Delhi, Feb 9: The Reserve Bank of India (RBI) has hiked key benchmark policy rate by 25 basis points to 6.5 per cent.
This is the sixth time interest rate has been hiked by the RBO since May last year, taking the total quantum of hike to 250 basis points.
RBI Governor Shaktikanta Das on Wednesday said the Monetary Policy Committee (MPC) by a majority decided to raise the policy repo rate by 25 basis points and keep a 'strong vigil' on inflation outlook.
"Policy rate at 6.5 per cent still trails the pre-pandemic level," Das said and stated that core inflation will remain sticky.
While the latest round of repo rate hike is expected to make home and vehicle loans costlier, the situation makes it an ideal time for people to invest their money in Fixed Deposits (FD). The banks usually pass on the benefits to customers by offering good interest rates once the repo rates are increased.
"It's indeed accurate that an increase in bank lending rates will have a direct impact on both bank depositors and new loan borrowers. Banks raise the interest rate on their consumer loans following an increase in the repo rate, and they often extend the loan's term rather than increasing the monthly EMI after the loan interest rate hike," Live Mint quoted Amit Gupta, MD, SAG Infotech, as saying.
Archit Gupta, Founder and CEO, told the website that it comes as good news for fixed deposit investors. "The rate of deposit would also get increased by some margin, making the FDs more attractive and providing a source of fixed income. Due to this more people would be inclined to invest in the FDs thereby creating a shortage of free floating money in the market. This would in turn curtail the expenditure done by the retail customers of the banks," stated Gupta.
Fixed deposits is one of the best and safest savings instruments. Traditionally, Indians have preferred to park their money in this instrument as it is an effective method of protecting funds from market volatility. As a result, the low-risk investment option has often been the first choice of people in India.
Bank Interest Rates
Check out the bank interest rates.
| Bank Name | For General Citizens (p.a.) | For Senior Citizens (p.a) |
| State Bank of India FD | 3.00% to 6.75% | 3.50% to 7.25% |
| HDFC Bank FD | 3.00% to 7.00% | 3.50% to 7.75% |
| ICICI Bank FD | 3.00% to 7.00% | 3.50% to 7.50% |
| IDBI Bank FD | 3.00% to 6.75% | 3.50% to 7.50% |
| Kotak Mahindra Bank FD | 2.75% to 7.00% | 3.25% to 7.50% |
| RBL Bank FD | 3.25% to 7.55% | 3.75% to 8.05% |
| KVB Bank FD | 4.00% to 7.25% | 5.90% to 7.65% |
| Punjab National Bank FD | 3.50% to 7.25% | 4.00% to 7.75% |
| Canara Bank FD | 3.25% to 7.00% | 3.25% to 7.50% |
| Axis Bank FD | 3.50% to 7.26% | 3.50% to 8.01% |
| Bank of Baroda FD | 3.00% to 7.05% | 3.50% to 7.55% |
| IDFC First Bank FD | 3.50% to 7.50% | 4.00% to 8.00% |
| Source: Bank Bazaar | ||
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