FD interest rate: These 6 private banks offer up to 7.5% interest rate on FDs for senior citizens
Several private banks have increased their fixed deposit interest rates in tandem with Reserve Bank of India’s (RBI) repo rate hikes. For the investment security that these institutions provide, the majority of senior citizens choose fixed deposits to save their life savings. If the RBI hikes repo rate again in February monetary policy meet, there are still chances that banks may hike FD rates again.Many private banks like HDFC Bank, ICICI Bank, Yes Bank, IDFC First Bank have increased fixed deposit rates and now offer an interest rate of up to 7.5% or above.
Here is a look at 6 private sector banks offering FD interest rates up to or above 7.5%.
HDFC Bank
HDFC Bank offers interest rates between 3.50% and 7.75% for senior citizens. The highest interest rate is offered on tenure of 5 year 1 day to 10 years.
ICICI Bank
ICICI Bank offers interest rates between 3.50% and 7.50% for senior citizens. The highest interest rate is offered on tenure of 15 months to 10 years.
Axis Bank
Axis Bank offers interest rates between 3.50% and 8.01% for senior citizens. The highest interest rate is offered on tenure of 2 years to less than 30 months.
Yes Bank
Yes Bank offers interest rates between 3.75% and 7.75% for senior citizens. Interest rate on its special fixed deposit is 8%. The highest interest rate is offered on tenure of 30 months.
Bandhan bank
Bandhan Bank offers interest rate between 3.75% to 8% for senior citizen. The highest interest rate is offered on tenure of 600 days (1 year, 7 months, 22 days).
IDFC FIRST Bank
IDFC Bank offers interest rates between 4% and 8% for senior citizens. The highest interest rate is offered on tenure of 18 months, 1 day to 3 years.
Should one wait for rates to cross 9% to book long term FDs?
If you wait longer to book your FD for a higher rate, you will lose out on the already increasing rates, and if you book long-term FDs after just a few hikes, you may lose out if the rates continue to rise in the future. Therefore, it might not be the best moment to book an FD if you want to do so for a long time or if a significant FD needs to be renewed. It is preferable to book short-term fixed-rate deposits in a rising rate environment so that they might profit from the increase during the investment period. Therefore, choosing an FD with a duration of six months to a year could be a wiser move. You can book longer-term FDs once these FDs mature and you receive a better rate at the time of renewal.
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This story originally appeared on: India Times - Author:Faqs of Insurances
