After maintaining the reference interest rate unchanged for ten consecutive gamesReserve Bank of India (driven) is expected to reduce the repurchase rate at the next Monetary Policy Committee (MPC) meeting scheduled for December. Therefore, it is recommended to lock your savings in fixed deposits (FD) for as long as possible, experts say.
“If your financial goal is 2-3 years away, you can lock the required amount in a fixed deposit. There is no more waiting,” says Preeti Zende, Sebi registered investment advisor and founder of Apna Dhan Financial Services.
This is because once the rate cut cycle begins, banks will follow suit and reduce their interest rates as well as the interest rates on term deposits. Here, we list top seven banks that offer high interest rates on their three-year fixed deposits (FDs).
It is noteworthy that one year FD They do not offer the highest returns and five year term That’s too long a period for someone with defined financial goals in the near future.
Therefore, one can explore the possibility of locking money in three-year fixed deposits (FDs) in the bank of their choice.
Private lenders
As can be seen in the following table, the private lender HDFC Bank offers 7 percent interest to general citizens and 7.5 percent to senior citizens on their three-year fixed deposits. These rates came into effect on July 24 of this year. ICICI Bank also offers the same rates i.e. 7 per cent and 7.5 per cent to general citizens and senior citizens.
(Source: banks’ websites.)
Other private lender Kotak Mahindra Bank It offers 7 percent to general citizens and 7.6 percent to senior citizens in their 3-year FDs. These rates went into effect on June 15.
state lenders
In the case of state lenders, interest rates are somewhat lower. State Bank of India (SBI) offers 6.75 percent to general citizens and 7.25 percent to senior citizens with FD of 3 years. These rates went into effect on June 15.
Punjab National Bank offers 7 per cent to general citizens and 7.5 per cent to senior citizens on three-year fixed deposits. These rates went into effect on October 1. Union Bank of India offers 6.7 percent to general citizens and 7.2 percent to senior citizens on three-year fixed deposits. These are the latest rates that came into effect on August 2.
Meanwhile, it is also important to mention that only a small to moderate portion of the overall portfolio should be allocated to fixed deposits as the returns on FDs are in the single digits and are also taxable.
“Just because the current rates of FDs are lucrative, one should not be tempted to lock up a major portion of their money in FDs alone. These deposits are taxable and in the long run fail to generate returns hedged against inflation,” adds Ms. Zende.
Note: This story is for informational purposes only. Talk to a SEBI registered investment advisor before taking any investment related decision.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.