Several banks in India have been increasing interest rates on fixed deposits (FDs) to attract customers and stay competitive in the market. Two banks, RBL Bank and Union Bank of India, are offering high interest rates of up to 8.5% on FDs to select customers. This move is expected to woo depositors looking for higher returns on their investments.
RBL Bank is offering an interest rate of 8.5% on FDs with tenures ranging from 2-10 years for senior citizens. For regular customers, the bank is offering an interest rate of up to 8% on FDs with tenures of 2-10 years. These rates are among the highest in the industry, making RBL Bank an attractive option for those looking for higher returns on their deposits.
Union Bank of India is also offering competitive interest rates on FDs. The bank is offering an interest rate of 8.1% on FDs with tenures of 5-10 years for senior citizens. For regular customers, the bank is offering an interest rate of up to 7.8% on FDs with tenures of 5-10 years.
These high interest rates are being offered to select customers, including senior citizens, non-resident Indians (NRIs), and existing customers. The interest rates are also subject to change and may not be available for all deposit amounts. It is essential for customers to check the interest rates and terms and conditions before investing in an FD.
The increase in interest rates on FDs is a result of the Reserve Bank of India’s (RBI) decision to raise the repo rate. The RBI has increased the repo rate by 225 basis points since May 2022, leading to a rise in lending rates and deposit rates. As a result, banks have been increasing interest rates on FDs to attract deposits and maintain their liquidity.
In conclusion, RBL Bank and Union Bank of India are offering high interest rates of up to 8.5% on FDs to select customers. These rates are among the highest in the industry, making them an attractive option for those looking for higher returns on their deposits. However, customers should check the interest rates and terms and conditions before investing in an FD. With the RBI’s decision to raise the repo rate, banks are expected to continue increasing interest rates on FDs, providing customers with more options for higher returns on their investments.