Senior citizen’s preferential rates are not applicable to NRO and NRE deposits.

An additional 0.50% rate is offered to senior citizens for the maturity of 180 days & above Asset allocation helps in diversifying your risk as well as in achieving financial goals in the most efficient manner so when one asset goes down, it does not have a drastic impact on the entire portfolio.Punjab and Sind Fixed Deposit Interest Rates 2023 PSB FD Interest Rates on Domestic/NRO/Capital Gain Accounts Scheme 1988 deposits of less than Rs 2 crore w.e.f. You should also keep in mind your risk profile, investment time-frame, related goals and asset allocation. Though banks are increasing their FD rates, returns on an investment should not be the only deciding factor when you invest. Senior citizens too are opting for senior citizen schemes that give a return of 8%, said Praharaj. For instance, for Section 80C investments, mutual funds have a lock-in of three years, whereas tax-saving FDs have a lock-in of five years. Mutual funds also have some tax advantages over FDs. Prakash Praharaj, founder, MaxSecure Financial Planners, said that as people are learning about mutual funds, many of them prefer to invest in them instead of FDs. With the interest cycle turning, other banks too could revise their FD rates upwards to boost demand. Which explains why interest rates on loans have also been increased by many large banks despite the RBI not having raised the repo rate. This will impact the marginal cost of funds-based lending rates (MCLR), making MCLR-linked loans costlier in the next revision cycle. This also means that the cost of funds for banks is going up. To rectify the situation, banks try to attract more depositors through higher FD rates. Similarly, for private sector banks, deposits grew 13.5%, but credit growth was 23.6%, in the same period.

For instance, for public sector banks, annual growth in aggregate deposits in the quarter ending December was 0.9%, while bank credit growth was 6%. If the demand for credit from borrowers goes up, more money should flow in, in the form of deposits.ĭata from the Reserve Bank of India (RBI) suggests that growth in demand for credit is higher than growth in deposits. Banks use the money collected through deposits to lend to borrowers. In February, State Bank of India had increased rates on term deposits by 10-75 bps.īanks are increasing deposit rates to deal with the tightening liquidity condition. HDFC Bank is not the first lender to hike FD rates.

Hdfc bank fixed deposit rates