According to the proposal announced by RBI, now bank fixed deposits of Rs 3 crore and above will be considered as bulk deposits. Currently, bank FDs of Rs 2 crore and above are considered as bulk FDs. After increasing the limit of bulk deposits, FD investors can earn more interest by making FDs of more money.
New Delhi. If you invest through bank FD (Fixed Deposit), then there is good news for you. You may soon get the benefit of higher interest rates on FD. Actually, the Reserve Bank (RBI) has decided to revise the definition of bulk as ‘single rupee fixed deposit of Rs 3 crore or more’ for scheduled commercial banks and small finance banks. RBI Governor Shaktikanta Das said that the limit of bulk deposit was last increased from Rs 1 crore to Rs 2 crore in 2019.
How to get more interest?
According to the proposal announced by RBI, now bank fixed deposits of Rs 3 crore and above will be considered as bulk deposits. Currently, bank FDs of Rs 2 crore and above are considered bulk FDs. The disadvantage of this is that bulk FDs offer lower interest rates than retail FDs. In such a situation, after increasing the limit of bulk deposits, FD investors can earn more interest by making FDs of more money.
How is the interest rate decided?
It is completely up to the banks to decide the interest rate on their fixed deposits. This is the reason why the interest rate on FD is also different in most banks. This depends on the period of fixed deposit and the age of the investor. Banks usually offer different interest rates on deposits according to their needs and asset-liability management (ALM).
Benefits of bank FD
- Your money is completely safe in fixed deposits.
- The returns in this are not affected by the fluctuations of the stock market.
- The interest on FD is higher than that of normal savings accounts.
- You also get the facility of taking a loan on FD.
