In this article I will be writing about the interest rates for fixed deposits in the coming months. As we have noted earlier that RBI had increased the CRR ratio by 0.75 points. This reduce the about Rs.35000 crore money from the liquidity. It is expected to be increase in the banks fixed deposit interest rates. This article lists some of the announcements from the banks to increase the fixed deposit rates. Subscribe to free email updates.
Bank Fixed Deposits
The deposit rates increase started in the last week of January and till now more than 20 banks have increased their fixed deposit rates. I have written about the HDFC banks new deposit rates. The new rates vary based on the term of the deposit. Most of the rates hikes are done for the period of more than three years.
HDFC bank and Kotak Mahindra have hiked the rates for three year deposit 0.75 points. Majority of the private banks and foreign banks have increased the rates and few public sector banks also increase the rates. There is few banks have not changed the rates but will update it soon.
Company Fixed Deposits
Traditional bank fixed deposits offer low interest rates compare to the company fixed deposits. That is the reason why most people chose company fixed deposits. It is suitable for the short term like three years because risk involved in this deposit is high compare to safe deposits in banks. Some of the popular company fixed deposits Mahindra Finance, Tata Motors, Unitech, etc.
Till now there is no interest rates hike in the company fixed deposits. We are expecting the rate hike in the near future. Otherwise people will loose the interest in company fixed deposits and will chose the banks as their favorite avenue.
I hope this article will be useful for those who are interested in the safe investment options like fixed deposit. We can see the rates increase from all the banks and companies to get investment from the public.
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