Bank FD: Banks are increasing FD rates, is this the right time to invest in fixed deposits? Get to know the experts

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Bank FD: Banks are increasing FD rates, is this the right time to invest in fixed deposits? Get to know the experts
Bank FD: Banks are increasing FD rates, is this the right time to invest in fixed deposits? Get to know the experts

In August, the central bank increased the repo rates by 50 basis points to 5.4 per cent. Now in such a situation, the question among common investors is that in the midst of rising FD rates, is it a good time to invest in Fixed Deposits (FDs)? Let’s understand what the market experts are saying?


New Delhi. After the Reserve Bank of India (RBI) hiked the repo rate for three consecutive times, many banks have increased the interest rates on fixed deposits (FDs). HDFC Bank, ICICI Bank, IndusInd, IDBI Bank are among the banks that have increased interest on fixed deposits recently. Small and new private banks are also offering FDs to the general public as well as senior citizens at attractive rates.

In August, the central bank increased the repo rates by 50 basis points to 5.4 per cent. Now in such a situation, the question among common investors is that in the midst of rising FD rates, is it a good time to invest in Fixed Deposits (FDs)? Let’s understand what the market experts are saying?

Keep investing partially
Experts say that investors can postpone their investment in fixed deposits for now as they feel that interest rates will be increased further. Investors’ thinking may be right, but it is not necessary that the rate will increase further. So one can start investing partly if not the whole amount, at least at the current rates. In this way good returns can be found.

Interest up to 7.5 percent on three-year FD
According to experts, for senior citizens, new and small private banks are now offering rates up to 7.5 per cent on three-year FDs. A portion of the savings of senior citizens should be invested in FDs that provide liquidity and interest income. However, bank FD interest is taxable. Most seniors have lower tax slabs, so their tax liability is minimal or none at all. In such a situation, FD is a profitable deal for them.

FD rates of major banks
The interest you can earn on your deposit depends on several factors. This includes the amount invested, time, interest rate and taxes. You can calculate the return on your investment by using the FD calculator.

SBI FD rates
2.90% to 5.65% (Gen)
3.40% to 6.45% (for senior citizens)

HDFC Bank FD rates
2.75% to 6.10% (For general)
3.25% to 6.60% (for senior citizens)

ICICI Bank FD rates
2.75% to 6.10% (For general)
3.25% to 6.60% (for senior citizens)

IDBI Bank FD rates
2.70% to 5.75% (For general)
3.20% to 6.50% (for senior citizens)

Kotak Mahindra Bank FD rates
2.50% to 5.90% (For general)
3.00% to 6.40% (For Senior Citizens)