Bank FD rates in India 2023: In the past one year, fixed deposits (FDs) have gained increasing popularity as a result of the upward trend in interest rates. This presents a favorable moment to consider investing in FDs before the rates begin to decline as Reserve Bank of India (RBI) has paused the rate hike.
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Several banks have recently adjusted their fixed deposit interest rates, making them more attractive compared to the interest earned on savings or current account balances.
IndusInd Bank Punjab National Bank (PNB)
The domestic term deposits were revised w.e.f. 1st June, 2023.
Read More: IndusInd Bank hikes lending rates for select tenures; RBL Bank cuts MCLR by 10 bps
IDBI Bank
The bank recently revised the interest rates on June 14, 2023.
The RBI surprised everyone by maintaining the repo rate when most analysts were expecting a raise. Investors in fixed deposits who anticipated future rate increases were let down. On April 6, 2023, the Reserve Bank of India (RBI) convened its bimonthly monetary policy meeting and chose to retain the repo rate at 6.5 per cent.
Despite the RBI maintaining the repo rate, the overall increase over the last 11 months is 2.5 per cent. The interest rate environment could not have been more favourable for investors in fixed-income securities (FDs), since just a year earlier they were dealing with one of the lowest interest rates on FDs witnessed in the recent two decades and are now looking forward to the benefits of all prior significant increases in repo rates.
The high retail inflation was the primary driver of the RBI’s earlier rate increases.
