Due to the decision of RBI, interest rate on FD and SAVINGS is going to increase again
The RBI may hike interest rates for the fourth consecutive time on Friday, following the US Federal Reserve and other global central banks to tackle inflation. RBI has increased the repo rate by 1.40 percent since May to control inflation.
During this period, the repo rate has increased from 4 percent to 5.40 percent. The Monetary Policy Committee (MPC) is likely to take a decision on increasing the repo rate by 0.50 per cent on September 30. If this happens, the repo rate will increase to 5.90 percent. The repo rate was increased by 0.40 per cent in May and by 0.50-0.50 per cent in June and August. Retail inflation based on the Consumer Price Index, which started moderating from May, rose to 7 per cent in August. The RBI takes into account retail inflation while formulating its biennial monetary policy.
The three-day meeting of the Monetary Policy Committee, to be chaired by the central bank governor, will begin on Wednesday and a decision on rate changes will be communicated on Friday, September 30. A few days ago, SBI had said in its special report that an increase of 0.50 percent is fixed in the rates. It had said the top repo rate would go up to 6.25 per cent and the final hike would be 0.35 per cent in the December policy review.
Bank interest rate will increase
This will directly affect the interest rates of the bank, due to which the fixed deposit deposited in your bank will now pay more interest than before. The increased interest rate will be available for keeping such money in a normal savings account as well as for customers making fixed deposits. At least 0.5% more interest rates will benefit from the new decision of RBI.
There will be problem for the borrowers
Due to the rising interest rate, taking a loan will again prove to be a costly deal for the people as well as paying more interest on home loans and vehicle loans etc. than before.
Know the current major bank’s FD rates
| Name of the Tax Saving FD | For General Citizens (p.a.) | For Senior Citizens (p.a.) |
|---|---|---|
| SBI Bank Tax Saving FD | 5.50% | 6.30% |
| IndusInd Bank Tax Saver Scheme | 6.75% | 7.50% |
| RBL Bank Tax Saving FD | 6.55% | 7.05% |
| HDFC Bank Tax Saving FD | 6.10% | 6.60% |
| Canara Bank Tax Saving FD | 5.75% | 6.25% |
| Axis Bank Tax Saving FD | 5.75% | 6.50% |
| Bank of Baroda Tax Saving FD | 5.50% | 6.50% |
| IDFC First Bank Tax Saving FD | 6.50% | Contact the bank |
| Union Bank of India Tax Saving FD | 5.75% | Contact the bank |
| PNB Tax Saving FD | 5.65% onwards | 6.15% onwards |
| Punjab and Sind Bank Tax Saving FD | 5.75% | 6.25% |
| IDBI Bank Tax Saving FD | 5.80% onwards | 6.55% |
