Banks are raising deposits (FDs) rates; therefore investors looking for option for investment of their hard earned money can go for FDs. Since January the stock market is continuously unstable, at present it is not safe to invest in stock market.
It is for the first time in 10 years that banks are giving 10% interest rate on special FDs.
In July the Reserve Bank of India raised interest rates which means banks are in desperate need of funds, which has forced them to offer extremely attractive interest rates on fixed deposits.
Few days back State Bank of India, the largest bank in the country, has hiked fixed deposit rates. Bank has announced a 0.25-0.75% increase in fixed deposit rates effective Saturday. You may check SBI FD Rates here the latest interest rates chart.
Therefore SBI will now be giving a 10% return on a one-year fixed deposit, up from 9.50% earlier.
ICICI Bank and HDFC Bank the two big private sector banks have already announced hikes in deposit rates after the RBI hiked rates on July 29.
ICICI Bank is offering 10% interest for a special tenure of 390 days. HDFC Bank offers 10% on deposits kept for 1 year, 15 days.
Senior citizens will get 0.50% additional interest.