At a time when Indian equity markets are turning volatile in line with global markets, investors are looking at zero-risk, high-return investments. Bank fixed deposits (FDs) have always trumped as an investment option in times of uncertainty. An added advantage for the FD investor is that several banks, including the State Bank of India, have increased FD rates from this month to attract investors.
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From March 10, Suryodaya Small Finance Bank has introduced a new FD interest rate in which an individual can earn 7 percent return for a tenure of 3 years. Senior citizens will get an additional 0.50 percent return and earn 7.5 percent on deposits for 3-year tenure.
Suryodaya Small Finance Bank is offering 3.25 percent rate on deposits for 7- 45 days from March 10. For tenures between 46 days and 90 days, the small finance bank (SFB) is offering 4.25 percent; for between 91 days and 6 months, it is offering 4.75 percent; for between 6 and 9 months, a rate of 5.25 percent is offered, and for above 9 months to less than 1 year tenure, the rate of interest is 5.75 percent. Between 1 year to 2 years, deposits will attract an FD interest rate of 6.50 percent. However, the FD rate is slightly lower at 6.25 percent for deposits of 2 years to less than 3 years.
For deposits made for exactly 3 years, the bank is offering the new rate of 7 percent. According to the Suryodaya Small Finance Bank website, this fixed deposit has the potential of earning an annualised rate of 7.19 percent.
The State Bank of India also increased its FD interest rates from March 10 by 20-40 basis points on deposits of over Rs 2 crore. The rates have gone up for terms ranging from 211 days to less than a year by 20 basis points. From March 10, these FDs will earn 3.30 percent against 3.10 percent earlier. For senior citizens, the rate has now gone up to 3.80 percent from 3.60 percent earlier.
For deposits from 1 year to 10 years, SBI has increased the FD rates by 40 basis points to 3.60 percent from 3.10 percent. For senior citizens, the rate will be 4.10 percent against 3.60 percent earlier.
(Edited by : Thomas Abraham)
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