Banks are luring customers with high interest, increased interest in floating rate FD

Investors’ interest in floating rate fixed deposit schemes increased.

Liquidity surplus is being seen in the banking sector since June 2019, before Corona. The main reason for this was that the credit of banks was weak in comparison to deposits. It has seen a jump in the last few months.

Banks continue to woo depositors interest rate ,Deposit rates) are increasing. The main reason for this is also the increase in the repo rate by the Central Bank. Growth in credit after the Corona periodcredit growthIt is seen that the demand for loans is increasing. In such a situation, banks are increasing the interest rate on your deposited capital to collect funds. The customers are being tempted by increasing the interest rate. In the last two months, the Reserve Bank of India has increased the repo rate by 90 basis points. At present, the repo rate has increased to 4.90 percent. Governor Das had told the media after the meeting of the Monetary Policy Committee that the repo rate would be increased further to bring inflation under control. It is believed that the repo rate will be further increased by 25 basis points.

In this case, floating rate fixed deposits (floating rate fixed deposits) is a good investment option. Yes Bank has launched the country’s first floating rate fixed deposit product. In this, the interest rate on fixed deposits is directly linked to the repo rate of RBI. If there is an increase or decrease in the repo rate, then the interest rate received automatically increases and decreases. In such a situation, the customer gets the benefit of returns based on the repo rate. Floating fixed deposits have a tenure of one to three years.

Corona already liquidity surplus

Liquidity surplus is being seen in the banking sector since June 2019, before Corona. The main reason for this was that the credit of banks was weak in comparison to deposits. It has seen a jump in the last few months. According to a report published in the Economic Times, the total deposits of all banks as of May 20 were Rs 165.7 lakh crore. This is a jump of 9.3 per cent on a yearly basis. Now that loan demand is booming and deposit rates are very low. In such a situation, banks are wooing customers by increasing the interest rate.

read this also



Which bank is offering how much interest?

At present, the fixed deposit rate of State Bank of India ranges from 2.9 percent to 6.30 percent. Similarly, ICICI Bank’s deposit rates range from 2.75 percent to 5.75 percent. The deposit rate of HDFC Bank is between 2.75 percent to 6.50 percent, the deposit rate of Kotak Mahindra Bank is between 2.50 percent to 6.56 percent and the deposit rate of Punjab National Bank is between 3 to 6 percent.