On the other hand, they have a choice of reinvesting their money for another term.Īll scheduled commercial banks and some NBFCs and HFCs in India offer fixed deposit accounts. Once the tenure of the deposit ends, investors can withdraw their investment. The rate of interest provided on FDs is much higher than that of a regular savings bank account. In return, they would get a fixed rate of interest throughout the investment tenure. Under this account, investors would deposit a lump sum over a period. What is a Fixed Deposit (FD) Account?įixed deposit accounts are an investment instrument offered by banks and other financial institutions. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower. Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.RBI has announced a new rule applicable to unclaimed, matured FD accounts. Private sector Kotak Mahindra Bank too increased its lending rates by 5 basis points across tenures. The new rates came into effect from February 15. This was the sixth hike in interest rates since May last year, taking the total quantum of increase to 250 basis points.įollowing the rate hike by the central bank, State Bank of India (SBI), the country's biggest bank hiked the MCLR by 10 basis points across tenures. HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points, with effect from March 1, according to a statement.Įarlier this month, the Reserve Bank of India (RBI) hiked the benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation. HDFC has also increased its retail prime lending rate by 25 basis points to a minimum of 9.20 per cent.

Besides, the savings are also useful to build an emergency corpus. Senior citizens generally invest a part of their savings in FDs, which offer liquidity and ensure interest income periodically. Most of the popular banks including the State Bank of India (SBI), ICICI Bank and HDFC Bank offer special fixed deposit schemes, especially for senior citizen depositors. Several banks have hiked their fixed deposit (FD) interest rates in the last few banks. 05% in case of deposit placed/renewed through online.

Hdfc fixed deposit interest compouding