If you are thinking of taking a fixed deposit or FD, waiting a while may be more beneficial for you. Private sector Axis Bank and IDBI Bank have started changing rates. Banking experts say other banks may soon make similar offers to attract customers.
How much interest is being earned
Axis Bank is paying 5.75% interest on FDs of more than five years. Whereas, for more than three years and less than five years, 5.40 per cent interest is paid on FD. At the same time, it is offering 5.25 per cent interest on FDs of more than 18 months and less than two years. The interest rate on one year FD is 5.15%. Most banks pay senior citizens an interest rate ranging from half a percent to 0.75 percent.
No charge on premature withdrawals
Axis Bank will not charge any fee on premature withdrawals from FD holders for at least two years after 15 December 2020. Banks usually cut fees by half to one per cent in case of premature withdrawals, causing losses to customers.
Withdraw carefully
Axis Bank has also waived pre-maturity withdrawal charges with certain conditions. But most banks still charge these fees. Banking experts say that in addition to charging for pre-maturity withdrawals, banks have also reduced the fixed interest rate on FDs. They say you have made a two year FD based on which the interest rate is five per cent and you have decided to break the FD after one year on which there is four per cent interest, then the banks pay the interest according to one year. This causes double damage.
Get FD done in various banks
The government has increased the guarantee for deposits in banks five times to Rs 5 lakh. In any case, when the bank sinks, you get this amount. If you have an FD of Rs 7 lakh, RD of Rs 2 lakh and a savings account of Rs 1 lakh in a single bank, you will get only Rs 5 lakh if the bank goes into liquidation. In such a situation, it is more beneficial to get a small amount of FD in different banks.
Banks once again started raising interest rates on FDs
- This trend will be seen in other banks in the coming days.
- According to banking experts, wait a while to get an FD to get more returns
- Banks will now increase the interest paid on FDs
No comments:
Post a Comment