3 PSBs That Recently Revised FD Rates: Check How Much They Offer Now

Bank Fds are once again making a comeback owing to the higher returns they now fetch and one of the tip to make the best out of it is by creating ladders. Whether or not you should be investing in them for meeting your long term goals is again under discussion as equities because of the global macros have turned highly uncertain, nonetheless, 3 banks have lately revised FD rates. Check to know details on them:

Indian Bank

The bank has revised its FD deposit rates for both deposits of less than Rs. 2 crore and those between Rs. 2 crore to 5 crore. And on it, the returns in the first bracket range from 2.8%-5.6% for the tenure between 7 days to more than 5 years. Senior citizens are eligible for a higher rate of 0.5%, implying for deposits maintained for 3 years or more than 5 years, they can earn the highest return of 6.1% per annum.

For deposits of between Rs. 2-5 crore, the highest interest rate for ordinary citizens is 3.25%.

Punjab and Sind Bank

Here also the maximum interest rate that a senior citizen can make on an FD is 6.1%, with returns for general citizens ranging between 2.8-5.6%. The new and revised rates have become effective from July 11, 2022. Note these returns are on an FD with a deposit amount of less than Rs. 2 crore.

 

Indian Overseas Bank

This bank again from the nationalised space has increased FD rates for Fds below Rs. 2 crore and here primarily the revision is effected for bank Fds of 1 year to less than 2 year with new return now at 5.45% as against the earlier 5.4%. Also, the revision for bank FD of 444 days tenure to 5.6%.

So, here also senior citizen can earn up to 6.1% return if they renew their deposit account or start a new one.

Is there a possibility of interest rates on Fds hitting 8%?

The interest rates have moved higher owing to the larger monetary policy take by the RBI and after an increase of 20-30 bps, there is still a chance of FD rates moving higher by another 0.7% taking the returns closer to 7%. For now most PSBs offer less than 6% return. So, as the rates can further mount ahead, the situation looks further good for rates to even hit pre-Covid or 8% levels.