Fixed Deposits can be fruitful for people who look for long term investments as it comes with low risk and enables them to diversify the individual’s portfolio. However, people often get confused while choosing a bank to open an FD account and there are certain points that need to be kept in mind while choosing one. 

The bank’s interest rate offerings can be the driving factor behind such investments. One needs to be hawkish in deciding which banks are offering the best interest rate at that point in time.  

As per the data by BankBazaar, new and small banks are providing higher interest rates against the established players. 

Picture this, the data revealed that small finance banks like AU Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank were providing interest rates up to 7%. Besides that the DCB bank offered up to 6.75% interest rate, followed by RBL Bank (6.25%) and Bandhan Bank (6%).

If you compare these interest rates with established players like HDFC Bank, ICICI Bank and Axis Bank, the latter offer interest rates in the range of 3 to 3.5 %. Kotak Mahindra Bank offers an interest rate up to 4%, the State Bank of India (SBI) gives 2.70 % and Bank of Baroda gives up to 3.20 % percent interest.

But there is a catch. These new and smaller banks ask people to keep the minimum balance high which doesn’t happen when it comes to bigger and established banks. 

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HDFC Bank customers suffered a massive glitch with the bank’s mobile banking application during the day.
 
In a tweet, the bank has said that it is looking into the matter on priority and urged the customers to used net banking to complete their transactions.
 
“We are experiencing some issues on the MobileBanking App. We are looking into this on priority and will update shortly. Customers are requested to please use NetBanking to complete their transactions. Regret the inconvenience caused. Thank you,” the bank said in a tweet.
 
Several users took to social media to complain regarding the issues faced on the app.
 
According to `Downdetector`, the issues surged around 10.45 a.m. and people are still facing problems.
 
This is yet another glitch after customers faced issues in net banking and mobile app in March.
 
In November last year, a major outage occurred in the bank`s internet banking and payment system on due to a power failure in the primary data centre, following which the Reserve Bank of India (RBI) in December asked the bank to temporarily stop all launches of the digital business generating activities and sourcing of new credit card customers.
 
In February, the RBI appointed an external professional IT firm to carry out a special audit of the entire IT infrastructure of HDFC Bank following the outage.

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New Delhi: In India, several banks and lending companies offer loans on cars, both new and second-hand. However, the difference in the interest rates of new and second-hand car loans is sometimes so huge that it becomes a differentiating factor. 

In the case of Axis Bank, the private lender is offering an interest rate of 8.65%-10.9% for a new car while there’s a 14.4%-16.4% on loans on second-hand cars. The difference, in this case, is over 5%. 

However, a few state-owned banks, including Canara Bank, Bank of India and Union Bank, are offering lower interest rates on pre-owned cars. The interest rates offered by these banks are quite attractive in comparison to other private and public sector banks. Also Read: 3 banks are offering unlimited free ATM transactions across India, check details

Banks offering the lowest interest rate on second-hand cars 

– Canara Bank is offering the lowest interest rate of used car loans at 7.3%-9.9%. 

– Bank of India is offering a loan on pre-owned cars at 7.35%-8.55% 

– Union Bank is offering loan on used cars at an interest rate of 8.9%-10.5%

Private Banks: Lowest interest rates on pre-owned cars 

– South Indian Bank is offering loans on a used car at an interest rate of 13.3%-13.75%.

– HDFC Bank is charging an interest rate of 13.75%-16%. 
 
– Federal Bank is currently offering loans at a 13.8% interest rate. 

In terms of time frames, most of the banks and lending companies offer a maximum tenure of five years on pre-owned cars. However, HDFC Bank is offering a maximum tenure of seven years while Bank of India’s loan comes with a minimum tenure of three years. Also Read: PF advance needed? Here’s how to check account balance via missed call or SMS

 

New Delhi: The Reserve Bank of India (RBI) on Friday decided to leave benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy faces heat of the second COVID wave.

This is the sixth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.

Here is how Industry leaders reacted on RBI June Monetary Policy

Abheek Barua, Chief Economist, HDFC Bank

In today’s policy announcement, the RBI ticked all the right boxes in terms of its response to the second wave. The announcement of GSAP 2.0 for INR 1.2 lakh crore and the carve out for SDLs bonds in the program is likely to help ease the pressure in the bond market, especially given the higher state borrowing pressure and increase in Centre borrowings this fiscal.

Siddhartha Sanyal, Chief Economist and Head – Research, Bandhan Bank

In today’s policy, the RBI’s bias to continue extending the same was evident from the initiatives such as liquidity support to contact-intensive sectors and MSMEs and small businesses. Further step up in G-SAP and inclusion of SDLs in the same are encouraging and should continue to offer support for the broader spectrum of the yield curve.

Prithviraj Srinivas, Chief Economist, Axis Capital

To tackle likely pressures on domestic interest rates, the RBI highlighted presence of USD 600bn FX reserves as a deterrent ahead of crucial FOMC meeting and gave predictable indications on RBI bond buying program, G-SAP 2.0. In addition, there were other credit facilitation measures for severely impacted high contact services sectors. Overall today’s measures and communication by RBI bolster current accommodative policy stance.

Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mutual Fund

The RBI MPC was about G & G – Growth forecasts for FY 22 were lowered by 1% while GSAP amt for Q2 FY 22 was increased to INR 1 tn (INR 1 tm in Q1). While CPI inflation forecasts have been increased, immediate demand side pressures may not be a concern due to the pandemic. Inclusion of SDL is GSAP is a good move to help ease some pressure on State loans. Bond yields are likely to move in tight range and oscillate between auction supply and GSAP led demand.

Churchil Bhatt, EVP & Debt Fund Manager, Kotak Mahindra Life Insurance Company

On the bond market front, RBI re-emphasized its guidance on orderly evolution of Yield Curve with the announcement of INR 1.2 Trillion GSAP 2.0. We expect bond markets to take comfort from continued RBI support. In light of the above, 10Y Benchmark Gsec should continue to trade in 5.90%-6.10% range in the near term.

Amar Ambani, Senior President and Head of Research – Institutional Equities, YES SECURITIES

Downward revision in FY22 GDP growth projection to 9.5% was quite expected, but seems little optimistic when compared with consensus estimates. Nevertheless, RBI pursued its broad intent of plugging weak spots in the economy by providing on tap liquidity with additional lending to distressed and contact-sensitive sectors.

George Alexander Muthoot, Managing Director at Muthoot Finance

The commitment by the central bank was supported by additional measures announced today such as a separate liquidity window of Rs. 15,000 crore for certain contact-intensive sectors and enhancing exposure threshold to Rs. 50 crore from Rs. 25 crore for MSMEs, small businesses and individuals for business loan purposes under Resolution Framework 2.0. Such steps will help borrowers to better mitigate the impact of pandemic’s second wave and we stand resolutely with every Indian to support all finance needs for a truly Atmanirbhar Bharat.

Pankaj Sharma, Chief Executive Officer (CEO), Religare Finvest Ltd

RBI’s move to enhance the overall exposure from INR 25 crores to INR 50 crores under Resolution Framework 2.0 is expected to help more MSMEs, non-MSMEs and individuals who have taken loans but have been impacted by the pandemic. This will help bring down systemic risks in the banking system.

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New Delhi: A person can invest in FDs, if  his or her risk appetite is very low. On the other hand, if you are risk averse stay with fixed deposits as the advantages far outweigh the disadvantages.

The RBI monetary policy changes like repo rate, the base rate, and others determine the rates of Fixed deposit (FD) of banks.

Here is a comparison of FD rates from major lenders like State Bank of India (SBI), Punjab Naional Bank (PNB), ICICI Bank, HDFC Bank, and Axis Bank. These banks provide FD tenures ranging from 7 days to 10 years.

Check the latest FD interest rates given by PNB, Axis Bank, SBI, HDFC Bank and ICICI Bank:

SBI

7 days to 45 days: 2.9 percent

46 days to 179 days: 3.9 percent

180 days to 210 days: 4.4 percent

211 days to 364 days: 4.4 percent

1 year to less than 2 years: 5 percent

2 years to less than 3 years: 5.1 percent

3 years to less than 5 years: 5.3 percent

5 years and up to 10  years: 5.4 percent

 

PNB (Rate effective since May 1)

7 days to 14 days: 3.00 percent

15 days to 29 days: 3.00 percent

30 days to 45 days: 3.00 percent

46 days to 90 days: 3.25 percent

91 days to 179 days: 4.00 percent

180 days to 270 days: 4.40 percent

271 days – 1 year: 4.50 percent

Duration up to 1 year: 5.10 percent

1 year – up to 2 years: 5.10 percent

2 years – up to 3 years: 5.10 percent

3 years – 5 years:  up to 5.25 percent

5 years – 10 years: up to 5.25 percent

 

Axis Bank (Rate effective since May 6)

 

7 – 29 days: 2.5 percent

30 days – < 3 months: 3 percent

3 months- < 6 months: 3 percent

6 months-  < 1 year: 4.4 percent

1 year – < 1 year 5 days: 5.1 percent

1 year 5 days- < 1 year 11 days: 5.15 percent

1 year 11 days- < 15 months: 5.1 percent

15 months   – < 18 months: 5.2 percent

18 months – < 2 years: 5.25 percent

2 years – < 30 months: 5.4 percent

3o months – < 5 years: 5.4 percent

5 years to 10 years: 5.75 percent

 

HDFC Bank

7 – 14 days: 2.50 percent

15 – 29 days: 2.50 percent

30 – 45 days: 3.00 percent

46 – 60 days: 3.00 percent

61 – 90 days: 3.00 percent

91 days -6 months: 3.50 percent

6 months – 9 months: 4.40 percent

9 months 1 day < 1 Year: 4.40 percent

1 Year:  4.90 percent

1 year 1 day – 2 years: 4.90 percent

2 years 1 day – 3 years: 5.15 percent

3 year 1 day- 5 years: 5.30 percent

5 years 1 day – 10 years: 5.50 percent

 

ICICI Bank

7 days to 29 days: 2.50 percent

30 days to 90 days: 3.00 percent

91 days to 184 days: 3.50 percent

185 days to 364 days: 4.40 percent

1 year to < 18 months: 4.90 percent

18 months to 2 year: 5.00 percent

2 years 1 day to 3 years: 5.15 percent

3 years 1 day to 5 years: 5.35 percent

5 years 1 day to 10 years: 5.50 percent

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