If you are planning to get a fixed deposit or FD, it may be more beneficial to wait a while. Private sector Axis Bank and IDBI Bank have initiated changes with the increase in rates. Experts in the banking sector say soon other banks may make such offers to attract customers.
How much interest is getting
Axis Bank has been paying 5.75% interest on FDs for more than five years. FDs pay interest of 5.40 per cent for three years and less than five years. At the same time, FDs of more than 18 months and less than two years offer 5.25 per cent interest. The interest rate on a one-year FD stands at 5.15 per cent. Most banks pay half as much as 0.75 per cent for senior citizens.
There is no charge for premature withdrawal
After 15 December 2020, Axis Bank will not charge any FDs for at least two years in case of premature withdrawal. Usually banks cut fees by half to one percent in the event of premature withdrawal, resulting in loss to customers.
Take care
Axis Bank may also waive premature withdrawal fees with certain conditions. But most banks are still charging these fees. Banking experts say that in addition to imposing premature withdrawals, banks will cut FD fixed interest rates. You have done a two-year FD, on which the interest rate is five per cent and after a year you have decided to end the FD with four per cent interest, then the banks pay interest at the rate of one year. It does double damage.
Get FD at various banks
The government has increased the guarantee on deposits in banks by five times to five lakh rupees. In the situation, when the bank sinks, you get too much. If you have an FD of Rs 7 lakh, an RD of Rs 2 lakh and a savings account of Rs 1 lakh in a single bank, you will only get Rs 5 lakh if ​​the bank collapses. In such a situation, obtaining a small amount of FD at various banks is more beneficial.
Banks once again began to increase interest in FD
– This trend will be seen in other banks in the near future.
– According to banking experts, waiting for a chance to earn more than FD gets
– Banks now increase interest payments on FD
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