When inflations are high, there is also an increase in consumer prices and the cost of investments, meanwhile, the value of money falls. Furthermore, this also leads to a cutback in the value of savings when it was earned. Hence, generally, it is guided to keep the inflation rate in mind when choosing FD schemes. Currently, India's inflation is at 6.77% in October 2022 but higher than the RBI's upper tolerance limit for the tenth consecutive month. RBI has hiked the policy repo rate by 190 basis points since May taking the rate at 5.9% currently. RBI's rate hike trend is to tame multi-year high inflation.
Here are the latest interest rates on FDs below ₹2 crore.
General public:
As per Fincare's website, under this category, depositors can earn as high as 8% interest rate on 1,000 days tenure, while the yield on FDs for this tenure is 8.24%.
Fincare offers a 7% rate on tenures from 24 months 1 day to 749 days, from 751 days to 999 days; from 1,001 days to 48 months; and from 59 months 1 day to 66 months.
The SFB offers a 7.75% rate on 750 days tenure, and 7.50% on 500 days tenures respectively. There is an interest rate of 6.75% offered on tenures from 12 months to 499 days; from 501 days to less than 24 months; from 48 months 1 day to 59 months.
On the highest tenure which is 66 months 1 day to 84 months, the SFB is giving a 6% rate. The lowest rate is 3.50% and is offered on tenures from 7 days to 90 days. A 4.50% rate is given on 91 days to 180 days tenure, and 5.50% on 181 days to 364 days.
Senior Citizens:
Here, a senior citizen is defined as a person above the age of 60 years.
At maximum, a senior citizen can earn an annualized rate of 8.50% at Fincare on FDs below ₹2 crore for 1,000 days tenure. The yield on this rate is around 8.77%. Meanwhile, the SFB offers an 8% rate on 500 days, and 8.25% on 750 days.
Fincare offers a 7.50% rate on tenures from 24 months 1 day to 749 days; from 751 days to 999 days; from 1,001 days to 48 months; and 59 months 1 day to 66 months.
An interest rate of 7.25% is offered on tenures from 12 months to 499 days; from 501 days to 24 months; and from 48 months 1 day to 59 months. A 6.50% rate is offered on 66 months 1 day to 84 months, while the rate is 6% on 181 days to 364 days; 5% from 91 days to 180 days; and 4% from 46 days to 90 days. The lowest rate is 3.50% and is offered on 7 days to 45 days tenure.
