The Reserve Bank has increased the repo rates by 1.4 percent in 3 times in May, June and August, while it is expected to increase further in the coming time.
FD rates expected to rise
With the announcement of increasing the rates by the Reserve Bank, the calculation is going on around how much your EMI will increase. Of course, the increase in loan rates has a direct effect on one’s loan. However, if you have looked at the news coming in the past, then you must have seen that along with the loan FD And the savings account rates also continue to rise. That is, if the Reserve Bank has given the green signal to increase the loan on one hand, then on the other hand it has also given better earning opportunities on FD.
Prime rates increased by 1.4 percent in 3 times
The Reserve Bank has increased the repo rates by 1.4 percent in 3 times in May, June and August, while it is expected to increase further in the coming time. In May, the RBI increased the rate by 0.4 percent and in the policy review of June and August by half and half percent. After the Reserve Bank’s signals, the market is predicting that the rates may increase to the level of 6 percent, that is, your earnings in FD and Savings accounts may increase in the coming time.
how much will be the benefit
Suppose if banks increase FD rates by half a percent, then during 5 years on FD of one lakh, more than 3 thousand rupees will be available. This amount is enough for those people who prefer investing in FD in any case. Today’s decision of the Reserve Bank can give a lot of benefit to senior citizens who invest their entire deposits in safe options like FDs. At the same time, this effective benefit can be more as the Reserve Bank anticipates a reduction in inflation in the coming times. is giving. That is, due to reduction in inflation rate and increase in FD rates, the real return can go up.
Why do FD rates increase?
With the rise in repo rates, the cost of loans for banks also increases. In such a situation, banks encourage customers to keep their extra money in the bank for a longer period. Hence FD rates are made more attractive. In fact, in any case, the FD rates remain below the loan rates, in such a situation, the bank uses the amount deposited in the FD in a better way.