Year-end 2023: With interest rates on FDs at multi-year highs, investors benefited greatly

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Year End 2023: 2023 has been a very important year for investing in Bank FD. This is because after many years bank FD investment came into the limelight and it gave more returns to the investors as compared to previous years. Investors have also taken advantage of this. According to RBI data, bank deposits rose 6.6 percent to Rs 149.2 lakh crore in April-August 2023. Since Bank FD is a safe investment, there is no risk of losing money. For this reason people invest in FDs in large numbers.

Reasons for increasing interest rates on FDs

The increase in interest rate on FDs is due to increase in repo rate by RBI. The central bank started raising the repo rate in 2022 to curb inflation. 0.40% in May 2022, 0.50% in June, 0.50% in August, 0.50% in September, 0.35% in December and 0.25% in February 2023. For this reason, banks have started getting 7 to 8 percent interest on FDs, which was between 5.5 and 6 percent till 2021.

Interest also increased on RD.

Along with FD, RD has given bumper returns to investors. Due to the increase in repo rate, its interest rate has also reached its highest level in many years. RD is also known as Recurring Deposit. In this, you have to deposit a fixed amount like installment every month for a fixed period and then, on maturity, the bank gives you a lump sum. Investment in it is also completely safe.

Interest rates on FDs in banks

Canara Bank – 7.25 percent

State Bank of India – 7.10 percent
Punjab National Bank – 7.25 percent
Bank of Baroda – 7.15 percent
Union Bank of India – 7.00 percent
HDFC Bank – 7.10 percent
Jammu and Kashmir Bank – 7.50 percent
ICICI Bank – 7.10 percent

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