This private bank is also giving up to 8% interest, but still FD loss deal

The Reserve Bank (RBI) has been continuously increasing the repo rate since May last year to control inflation. Due to the increase in the repo rate, on the one hand, the EMI from home loan to personal loan is increasing, on the other hand, customers are getting more interest on FD rates than before. . Now many banks are offering attractive interest of up to 08 percent on making Fixed Deposit.

Applicable on deposits up to

Now in this connection the fresh name of Yes Bank of the private sector has been added. Yes Bank has announced an increase in FD interest rates (Yes Bank FD Rates) from 25 to 50 basis points i.e. from 0.25 percent to 0.50 percent. These new FD interest rates are applicable for deposits of less than Rs 02 crore. According to the information given on the bank’s website, the increased FD rates have become effective from 21 February 2022.

so much interest to senior citizens

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According to the information given on the website, now 06 percent interest will be available on FDs of 181 to 271 days. Similarly, 6.25 per cent interest will be given on FDs from 272 days to one year and 7.25 per cent for the period from one year to 15 months. The bank has increased the rates for FDs from 15 months to 36 months to 7.5 per cent. Since senior citizens are being given 0.50 percent more interest than the common people on FDs of every period by the bank. In this way Yes Bank is now offering up to 08% interest on FD.

Looking at short-term FDs, the bank is paying interest at the rate of 3.25 per cent for 7 to 14 days, 3.70 per cent for 15 to 45 days, 4.10 per cent for 46 to 90 days and 4.75 per cent for 91 to 180 days. .

What does the industry standard say

Now let us know whether it is beneficial to invest in it after the increase in FD rates. If we talk according to the standard of the industry, then a good investment is said to be one which gives more interest than at least the current retail inflation rate. Inflation remained outside the purview of the Reserve Bank for the first 10 months of last year. After some softening during November and December 2022, it again crossed 06 percent in January 2023. Meaning if you are getting more than 06 percent return now, then the investment will be considered right.

It is important to know this

Since the process of increasing the repo rate has not stopped yet. There are clear indications of this in the recently released RBI MPC minutes as well. The trend of the US Central Bank Federal Reserve is also saying the same. It means that in the coming time, the repo rate will increase further, due to which the rates of FD will also increase. For this reason, it is not right to invest money in long term FDs, but if you look at short term FDs, still most are offering much lower returns than the inflation rate.