FD becomes first choice of investors due to better interest

Bank FD: If you are also thinking of investing your hard-earned money in a safe place, then Fixed Deposit (FD) of your bank is the best option. In recent times, due to the increasing interest rates on bank FD, people’s attraction towards it has increased rapidly. According to the Reserve Bank of India, there has been a huge increase of 60.3 percent in the total deposits of banks through investment in December 2023. This figure was only 57.2 percent in March 2023. During April-December 2023, the contribution of bank FD in the total deposits of banks was 97.6 percent. However, during this period, there has been a decline in the share of total deposits in current account and savings account.

Read Also: There is no one in competition… Moody’s again raised India’s growth rate estimate.

Why have interest rates increased?

The repo rate was last changed by the Reserve Bank of India in the month of February last year. Since then, the repo rate has been kept unchanged for five consecutive times. When the repo rate is cut, the bank cuts the interest rates on FD. When the repo rate increases, the bank increases the interest rates to increase the money deposited with it. Investment experts believe that this is the best time for any investor to invest in FD. The popularity of bank FD can be gauged from the fact that an amount of about Rs 103 trillion (about Rs 103 lakh crore) is deposited in a total of 2 crore 42 lakh FDs.

How much is FD of which bank?

Name of bank	For General Citizen (PA)	For Senior Citizen (PA)
SBI	5.30% to 5.40%	5.80% to 6.20%
HDFC Bank	2.50% to 5.60%	3.00% to 6.35%
pnb	2.90% to 5.25%	3.50% to 5.75%
Canara Bank	2.90% to 5.40%	2.90% to 5.90%
Axis Bank	2.50% to 5.75%	2.50% to 6.50%
Bank of Baroda	2.80% to 5.25%	3.30% to 6.25%
IDFC Bank	2.50% to 6.00%	3.00% to 6.50%
Bank of India	2.85% to 5.05%	3.35% to 5.55%
Punjab and Sind Bank	3.00% to 5.30%3.50% to 5.80%