Fixed Deposit Interest Rate Hikes: By increasing the RBI’s report, banks are offering customers a higher rate of interest for investing in FDs.
New Delhi: Investing in FD can be a better option to get guaranteed profits with safe investment. Because, by increasing the RBI’s report, banks are offering higher interest rates to customers in return for investing in FDs. Yes Bank has announced to give interest rate up to 8.25 percent to the customers. Whereas, Unity Small Finance Bank is offering 9.50 percent interest rate.
Interest rates on Yes Bank FD
Yes Bank has increased the interest rate on Fixed Deposits by 25 to 50 basis points on February 21, 2022. Yes Bank offers investors an opportunity to earn hefty returns on tenure ranging from 7 days to 10 years. After the new amendment, the bank is offering interest rates ranging from 3.25 per cent to a maximum of 7.50 per cent for regular citizens.
At the same time, it has been announced to give interest rate ranging from minimum 3.75 percent to maximum 8 percent interest rate to senior citizens. According to Yes Bank, the highest interest rate is being given to ordinary citizens at 7.75 per cent on FDs with a tenure of 35 months. Whereas, it has been announced to give 8.25 percent interest to senior citizens investing on the same period.
Unity Small Finance Bank, which is paying 9.50 percent interest on
Unity Bank FD, has revised the interest rates on FDs of all tenures from 15 February 2023. The bank is paying 9.25% interest to senior citizens and 8.75% to general customers on 181-201 days and 501 days fixed deposits.
Small Finance Bank is giving 9.00 percent interest rate to general customers on investment for 1001 days, while on the same tenure it has offered 9.50 percent interest rate to senior citizens. At the same time, the bank is giving 7.50% interest to senior citizens and 7% to general customers on fixed deposits ranging from 5 years to 10 years.
Penalty rule on FD premature withdrawal
Before the completion of FD tenure, there is a penalty rule for investors breaking it ie premature withdrawal. Different banks charge penalty on premature withdrawal. According to HDFC Bank, for premature closure of fixed deposit scheme, 1 per cent of the applicable final rate will be reduced as penalty. The same penalty applies to all FD schemes except fixed deposits booked for a period of 7 to 14 days.
