Ever since the Reserve Bank of India has increased the repo rate, the problems of borrowers have increased, but those who have fixed deposits have become silver.
The reason for this is that since the increase in the repo rate, debt has become expensive, but investors are getting more returns on FDs. The name of Fincare Small Finance Bank has also been added in the race to increase the interest rate in FD. This bank has increased the interest on all FDs less than two crores. The new interest rates have come into effect from October 11.
Here are the new interest rates of the bank
Fincare Small Finance Bank will continue to offer interest @ 3% on Fixed Deposits maturing in 7 days to 45 days and 3.5% on FDs maturing between 46 days to 90 days. This bank will now pay 4.5% interest on FDs that mature between 91 and 180 days. While FDs maturing between 181 to 364 days will get 5.5% interest. The interest on fixed deposits maturing between 12 and 24 months will be 6.75%. Interest will be 7.25% for a period of 500 days and 7.75% for a period of 1000 days. 7% interest on FD of 24 months 1 day to FD of 48 months, 6.75 percent interest on FD of 48 months 1 day to 59 months. At the same time, interest will be given at the rate of 6 percent on FDs of 66 months 1 day to 84 months.
Senior citizens silver
Senior citizens have benefited a lot in terms of interest on FD. Fincare Small Finance Bank will now offer interest rate of 0.50 percent more than the standard interest rate on FDs of all tenors to senior citizens. Senior citizens will get interest in the range of 3.50% to 8.25% on fixed deposits maturing between 7 days to 10 years. Apart from this, even if they have a joint account with the bank and the first account holder is a senior citizen, they will still get the benefit of the new interest rates.
Why did the bank’s interest rate increase?
Explain that whenever the Reserve Bank increases or decreases the interest rates, it is passed on to all the bank customers because the interest rates on loans and other savings schemes are linked to the benchmark. Most banks offer higher interest rates to senior citizens on FDs or any other savings schemes. In September, RBI has increased the repo rate for the fourth time and with this, banks have also increased the interest rate on loans and savings schemes. In this episode, Fincare Small Finance has implemented new interest rates from October 11.
