Kolkata: Reserve Bank of India (RBI) has reduced Repo Rate after nearly five years. It has brought unalloyed cheer to those who are servicing loans since their EMIs are expected to go down after the RBI rate cut decision. However, it does not exactly bring happy tidings for those who have parked their funds in Fixed Deposits and are dependent on the interest income defraying their regular expenses. This is especially true for senior citizens.
Therefore, it makes a lot of sense for those who want to invest in FDs to lock in high interest rates that banks are offering. Below we have selected a range of small finance banks and private banks that are offering interest rates that are higher than 8.5% right now. It makes sense to enquire with these banks and park some funds with them since it might help you to earn a few rupees more as interest before the interest rate downcycle spreads at the bank level. One should remember that in a research report, State Bank of India has stated that there might be two more rounds of rate cuts this year that could take the cumulative rate cut to 75 basis points in 2025.
Highest interest rates in the market
Unity Small Finance Bank: 9.5% on a tenure of 1,001 days
Utkarsh Small Finance Bank: 9.12 on a tenure of 2 years to 3 years
Suryoday Small Finance Bank: 9.1% on a tenure of 5 years
Northeast Small Finance Bank: 9% on a tenure of 18 months 1 day to 36 months
Equitas Small Finance Bank: 9% on a tenure of 888 days
ESAF Small Finance Bank: 8.88% on a tenure of 888 days
Jana Small Finance Bank: 8.75% on a tenure of 1 year to 3 years
SBM Bank India: 8.75% on a tenure of 18 months to 2 years 3 days
Bandhan Bank: 8.55% on a tenure of 1 year
DCB Bank: 19-20 months; 26 months to less than 61 months
YES Bank: 8.5% on a tenure of 18 months
RBL Bank: 8.5% on a tenure of 500 days
The point to note here is that there are no PU banks in this list and that no banks paying a top rate of less than 8.5% to senior citizens on FDs of any tenure basket has not been considered. However, it is advisable that one should consult a personal finance expert before putting one’s hard-earned money into any instrument.
There has been a lot of discussion on how the RBI Repo Rate cut will reduce EMIs on a whole range of loans. But it is also true that simultaneously the rate cut will induce banks to reduce the interest rates they pay on FDs. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
