In the last one year, the Reserve Bank has increased the repo rate rapidly, which has had a great impact on the bank customers. On the positive side, customers are benefiting from higher interest rates on their savings accounts and fixed deposits (FDs).
However, in the last two Monetary Policy Committee meetings, the Reserve Bank has kept the repo rate on hold due to a decline in retail inflation. This decision reflects the objective of keeping the repo rate unchanged.
During the initial year, the Reserve Bank increased the repo rate by 2.50 per cent, resulting in both gains and losses to individuals. On one hand, loans became more expensive, burdening borrowers with higher EMIs. On the other hand, the interest earned on FDs and savings accounts increased.
Consequent to the continuous hike in the repo rate, banks have started offering interest rates above 9 per cent on FDs. It is important to note that this higher rate applies exclusively to senior citizens, while other customers may receive different rates.
Unity Small Finance Bank offers 9.25 percent interest rate on FDs with maturity period of 181 to 201 days. Additionally, an interest rate of 9.50 per cent is available on FDs with a maturity of 1001 days.
Senior citizen customers of Fincare Small Finance Bank can earn an interest rate of 9.11 per cent on FDs with a maturity period of 1000 days.
Jana Small Finance Bank also offers 9 percent plus interest rates to senior citizens. This rate is applicable to FDs with maturity period of 366 to 499 days, 501 to 730 days and 500 days.
Senior citizens can enjoy 9.6 per cent interest rate on fixed deposits with Suryoday Small Finance Bank with a maturity period of 5 years. In addition, 9 percent interest rate is available on FDs with a maturity period of 999 days.
ESAF Small Finance Bank offers 9 percent interest rate on FDs with maturity period of 2 to 3 years to senior citizens.
These attractive interest rates specifically cater to the needs of senior citizens, providing them with great investment opportunities.
