The Reserve Bank of India has been announcing policy rate increases for several months due to high inflation. However, in spite of the policy rates, a number of banks raised their fixed deposit rates in January for funds under Rs 2 crore. One of the most widely used means of saving money today is fixed deposits.
This method of saving is used by many people to put money away for a short time. They offer respectable returns and the money remains safe. Additionally, income tax benefits accrue to long-term fixed deposits. Let’s look at the list of banks with higher interest rates.
On the first day of the new year, the fixed deposit rates at Punjab National Bank, or PNB, increased. Fixed deposit rates were increased by 50 basis points by PNB.
For fixed deposits with tenures ranging from 7 to 90 days, Indian Overseas Bank announced an increase in FD rates. There was a 75-basis-point increase. A fixed deposit with a term of 444 days is eligible for the highest interest rate. That has an interest rate of 6.55 percent.
Additionally, Yes Bank has altered its interest rates for fixed deposits with terms ranging from 7 days to 120 months. It offers interest rates between 3.25 and 7%. The rates for seniors range from 3.75 percent to 7.75 percent. The FD rate offered by Yes Bank is 7.50 percent for a period of thirty months; 8% of seniors are affected.
The FD rates offered by Kotak Mahindra Bank were raised by 50 basis points. It is providing FDs lasting between 390 days and two years with a health interest rate of 7%. The rate is 7.50 percent for seniors.
In the FD market, Bandhan Bank is a relatively new player. It offers FDs with terms of 7 days to 10 years at interest rates ranging from 3 to 5.85 percent. It offers interest rates of 7.50 percent and 8% for a 600-day FD.
Indian Overseas Bank also increased the rates on FDs with a term of up to 90 days by 75 basis points.
