Fixed Deposit Interest Rates: A private bank has made a big announcement related to fixed deposits. Check now how much benefit investors will get.
Fixed Deposit Interest Rates: Federal Bank has changed its Fixed Deposit Interest Rates. Now this private bank is offering interest rate of up to 8 percent per annum on its FDs. Now the highest interest rate is available on FDs with a duration of 444 days. The highest rate for general citizens is 7.5 percent and for senior citizens it is 8 percent.
How much will investors benefit
It is important to note that a small difference in interest rate may seem to not make much difference in the income earned, but in reality it is not so. If you invest Rs 5 lakh in a 5-year fixed deposit (FD), then 50 basis points (bps) more interest can increase your income by Rs 12,500.
How much interest will be available on FD
On one-year deposits, the private bank is now offering 7 percent and 7.5 percent to general and senior citizens. On two-year deposits, the bank gives 7.15 percent and 7.65 percent interest to general and senior citizens. On three-year and four-year deposits, the bank now gives 7.10 percent interest to general citizens and 7.60 percent interest to senior citizens. When the deposit is for a period of 5 years, the bank gives 7.10 percent interest to general people and 7.60 percent interest to senior citizens. On deposits of more than five years, the bank gives 6.60 percent interest to general citizens and 7.10 percent interest to senior citizens.
Fixed Deposit (FD) is a good investment option. Investors who do not want to take risk prefer to invest their money in FD. You get guaranteed returns on this and it is also safe. Banks generally give interest rates between 3% to 8% depending on the tenure of the fixed deposit i.e. for how long you are making the FD. Most banks give the benefit of an extra 0.5% interest rate to senior citizens. That is why elderly people prefer to invest their retirement money in FD.
