The borrowers are upset due to the continuous increase in interest rates by the Reserve Bank, while the investors who have made FD in banks and other financial institutions are very happy as they are now getting more interest on fixed deposits.
From May to September this year, RBI has increased the repo rate four times. At the same time, banks have also increased the interest rate on loans and savings schemes.
In fact, the interest rates on home loans and other savings schemes are linked to the benchmark. Whenever the Reserve Bank increases or decreases the interest rate, it is passed on to all the bank customers. At the same time, senior citizens get more interest on FD. In this episode, Fincare Small Finance Bank has announced a hike in interest rates on FDs of less than Rs 2 crore. According to the official website of the bank, the new rates are effective from October 11, 2022.
Bank hikes interest rates on FDs of all tenors
- Fincare Small Finance Bank 3% rate on Fixed Deposit maturing in 7 days to 45 days
- Will continue to pay interest at the rate of 3.5% on FDs maturing in 46 days to 90 days.
- At the same time, Fincare Small Finance Bank will now pay 4.5% interest on deposits maturing between 91 and 180 days. Whereas the deposit amount maturing between 181 to 364 days will get 5.5% interest rate. At the same time, 6.75 percent interest will be available on fixed deposits that are completed between 12 to 24 months. At the same time, the interest rate will be 7.25 percent for a period of 500 days and 7.75% for a period of 1000 days.
0.50% additional interest to senior citizens over standard interest rate
In Fincare Small Finance Bank, senior citizens will get 0.50% additional interest on FDs of all tenors over the standard interest rate. Senior citizens will get interest at the rate of 3.50% and 8.25% on fixed deposits maturing between 7 days to 10 years.
According to the bank’s website, “Citizens who are above 60 years of age are defined as Senior Citizens. In case of joint account holders where one of the account holders is a senior citizen, the rate of interest on senior citizen FD will be applicable only if the senior citizen is the ‘first holder’ of the said fixed deposit.
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