The interest rates on Fixed Deposits (FDs) have witnessed a steady rise over the past year.
However, with the Reserve Bank of India (RBI) refraining from increasing the repo rate in its latest two announcements, the likelihood of further rate hikes has diminished.
Consequently, this presents an opportune moment for potential investors.
Nevertheless, some banks have begun to decrease their FD rates, reflecting a shift in the market.
Punjab National Bank Reduces FD Rates
Punjab National Bank (PNB) recently lowered its interest rates for one-year FDs, effective from June 1, 2023.
While the RBI had increased the repo rate by 250 basis points to 6.5% since April of the previous year, banks had previously raised their rates to attract customers.
However, this trend appears to be changing, as certain FD schemes approach their closure date.
Upcoming Closure of Special FD Schemes
SBI Amrit Kalash
State Bank of India (SBI), the largest public sector bank in the country, offers the Amrit Kalash FD Retail Term Deposit Scheme, which will be available until the end of June.
Under this scheme, the general public can avail a 7.10% interest rate on a 400-day tenure, while senior citizens can enjoy a 7.60% interest rate.
The deadline for the 400-day Amrit Kalash scheme is June 30, 2023.
Indian Bank Special FD
Indian Bank’s “Ind Super 400 Days” scheme is also set to conclude on June 30, 2023.
As part of this scheme, Indian Bank is providing a 7.25% interest rate to the general public, with senior citizens being offered a higher rate of 7.75%.
SBI We Care
The SBI WeCare FD scheme exclusively caters to senior citizens, offering a tenure of 5 to 10 years.
This scheme will be available until June 30, 2023.
Senior citizens can benefit from an attractive interest rate of 7.50% under the WeCare FD scheme.
