In the last few months, banks have increased the interest rates of Fixed Deposits. Due to this, the average interest rate of bank fixed deposits has increased from 5.5 percent to 7 percent. The reason behind this is the increase in the repo rate.
The Reserve Bank of India (RBI) has continuously increased the Repo Rate. Because of this, the private and government banks of the country have tried to make them attractive to the customers by increasing the interest rates of their Fixed Deposit (FD) schemes. Some banks are paying more than eight per cent interest on fixed deposits, while some are giving up to 9 per cent interest.
Interest on 501 days FD
Unity Small Finance is one such bank, which is offering up to 9% interest on FDs to common depositors. At the same time, the bank is giving 50 basis points additional interest on FD to senior citizens. That is, Unity Small Finance Bank is offering 9.50 percent interest on its FD. According to the information available on the website of Unity Small Finance Bank, this private bank is offering an interest rate of 8.75 per cent on FDs of 181-201 days. The bank is offering 8.75 per cent interest on 501 days FD. At the same time, Unity Small Finance Bank is offering an interest rate of 9 percent on FD of 1001 days.
Senior citizens will get 9.50% interest
Like any other bank, Unity Small Finance Bank is also offering an additional 50 basis points interest rate on bank fixed deposits belonging to senior citizens. This means, if a senior citizen invests in Unity Small Finance Bank’s FD of 181 to 201 days and 501 days, then he will get interest at the rate of 9.25 per cent per annum. At the same time, on investment in FD of 1001 days, it is offering interest at the rate of 9.50 percent to senior citizens. So, Unity Small Finance Bank is offering up to 9 percent interest on FD to the common people.
Increase in repo rate
The Reserve Bank of India had increased the repo rate by 25 basis points or 0.25 per cent in the month of February. All types of loans become expensive due to increase in repo rate. To control the inflation rate, the Reserve Bank had increased the repo rate. In this financial year, the Reserve Bank has increased the repo rate by more than two percent.a=
