Banks Increase FD Rates: Recently, Finance Minister Nirmala Sitharaman asked public sector banks to intensify their efforts to increase their deposits so that the increasing demand for loans can be met.
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Fixed Deposit Interest Rates 2025: Banks across the country are increasing interest rates on fixed deposits (FDs), giving customers the benefit of higher returns. Along with big banks like State Bank of India (SBI), IDBI, HDFC, many small banks are also launching new schemes to attract more deposits.
Why are banks increasing FD rates?
Banks are increasing the interest rate on FDs (Bank FD Interest Rates) because they need to deposit more money. This will enable them to raise enough funds to give loans to people.
Recently, Finance Minister Nirmala Sitharaman asked public sector banks to intensify their efforts to increase their deposits so that the increasing demand for loans can be met.
Nowadays the demand for loans is increasing a lot, and to meet this, it is necessary for the banks to keep more funds (deposits) with them. For this reason, the interest rate on FD (Fixed Deposit Rates) is being increased so that people deposit their money in the bank.
What will be the benefit to the customers?
Better interest rates
Banks like SBI, IDBI and Bank of Baroda are now offering higher interest rates on FDs to attract more and more customers. SBI is giving an additional interest of 50 basis points on normal FD rates to senior citizens, while super senior citizens (above 80 years) are now getting the benefit of an additional 10 basis points.
IDBI Bank has launched the “IDBI Chiranjeevi” scheme, which is for people aged 80 years and above. Under this scheme, interest rates of 8.05% are being offered on FDs of 555 days, 7.9% for 375 days, and 8% for 444 days.
At the same time, Bank of Baroda has launched a “Liquid Fixed Deposit” scheme, in which customers can deposit a minimum amount of Rs 5,000 and get the facility of withdrawal in units of Rs 1,000.
New investment options
Banks are introducing new schemes and better interest rates to attract customers and strengthen their fund base. SBI has launched the “Har Ghar Lakhpati” scheme, which is a recurring deposit (RD) scheme. In this, a fund of one lakh or more can be created by making monthly deposits for three to 10 years. To give special benefits to senior citizens, higher interest rates of 0.50% to 0.65% are being given on FD. This is very beneficial for those who want to keep their savings safe and want to create a means of regular income.
Preparation to increase the deposit base of banks
The main objective of the increase in interest rates and new schemes is to increase the deposit base of banks so that the loan giving capacity improves and customers get better returns. The increased interest rates on FD by banks are not only beneficial for investors, but it also meets the needs of the banking sector. If you are planning to invest, then this time may prove to be right for investing in FD.
