Customers are increasingly looking at alternative investment avenues, such as the capital markets, in search of better returns
For senior citizens, finding the right place to park savings is the key to ensuring financial stability in later years
Fixed deposit rates are directly affected by the change in repo rate. Small finance, private, public, and foreign banks hike fixed deposit rates up to 9% annually, providing lucrative options for save
For those who are uncomfortable with market-linked options like mutual funds or stocks, fixed deposits (FDs) offer a familiar and safer alternative
Lender raises extra interest rate for deposits made by senior citizens and super senior citizens
For deposits below Rs 3 crore, HDFC Bank has increased the interest rates by 20 basis points for tenors of 35 months and 55 months
It will offer 7.35% and 7.40% on fixed deposits below Rs 3 crore for 35 months and 55 months tenors
Most banks offer higher interest rates (usually 50 basis points) on their senior citizens' fixed deposits
Deposits are still the most preferred instrument of saving in India although market-based instruments are gaining share, according to an article published in the Reserve Bank's July Bulletin.
Some banks offer interest rates of 8% or more, making them an appealing option for risk-averse investors
Ujjivan Small Finance Bank offers the highest rates at 8.75% for senior citizens and 8.25% for others
The SFB is in the process of merging with fintech Slice to augment its capital base
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Effective from May 15, 2024, the new SBI FD rates aim to attract more investors looking for safe and lucrative savings options
Navigating fixed deposit options: A comprehensive guide to top rates across different banks
The report estimates a staggering 74 million senior citizen term deposit accounts in India, holding a combined value of Rs 34 lakh crore.
According to experts, the RBI might adjust interest rates towards this year's end. Therefore, it could be wise to invest in FDs now, taking advantage of the current higher interest rates
Fixed deposits (FDs) are a cornerstone of financial planning for many in India, offering a secure and predictable return on investment
Look at returns offered by various players over different horizons
Fixed deposit rates of financial companies are a conservative way of investment