Indian reserve Bank After the huge increase in the repo rate by the Reserve Bank of India (RBI), all the major banks in the country have increased the interest rates on their fixed deposits i.e. FD several times to attract customers. . Because of this, investing in FD has once again become beneficial. If you also want to invest in FD, we have provided you with a list of those five banks that earn the highest interest on 1-year FD. Let us tell you that as a result of increasing the repo rate from time to time, interest rates have increased by 2.25%.
These five banks are giving the highest returns
Deposit repaired
The FD interest rate of all holdings is not the same
When investing, keep in mind that the FD interest rate of all holdings is not the same. If you’re taking the longer tenure option, don’t assume you’ll get the best interest. Calculate the compound interest and choose for yourself the period in which you obtain the highest return. A non-cumulative FD gives you regular returns. While the accrual FD allows you to accumulate the amount of interest and reinvest it along with your principal amount. Thus, you get an even higher return on your deposit, which is beneficial in the long run.
Get more interest in FD like this
If you want more interest in FD, please avoid the automatic renewal option. Banks generally offer the option of automatic renewal to customers who invest in fixed deposits. If a customer chooses the automatic renewal option, the bank automatically renews the Fixed Deposit for the same period at the interest rate in effect at the time of maturity. In this case, the current interest rate may be higher or lower than the previous fixed deposit interest rate. Because of this, investors may have to take the loss. So whenever your FD tenure ends, do your research and find out which bank and which tenure is getting the highest interest. Only then invest.
Repo rate increase possible
Significantly, to reduce inflation, RBI is increasing the repo rate. RBI has increased the rate by 2.25% since May. The meeting of the Monetary Policy Committee began today. It is likely to increase by 0.25%. That is, the increase in DF rates may continue further. This is good news for investors. After Corona, the banks had significantly reduced the interest rates of the FDs. Now it has started to increase. Since banks have yet to pass on the full benefit of the rate hike to FD investors, the FD interest rate is likely to rise further in the coming months.
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