State Bank of India (SBI) recently hiked interest rates on its retail term deposits by 25-75 basis points for tenures of up to one year. With interest rates at or very close to the peak, this is a good time for fixed deposit (FD) investors to lock into current rates.
Two factors may have caused SBI to hike its FD rates.
"Credit demand has been strong, pushing the creditdeposit ratio of banks to elevated levels. Moreover, the Reserve Bank of India (RBI) has kept liquidity tight to rein in inflation, so banks are raising money via deposits to have liquidity on their balance sheets," says Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors.
Capitalise on current rates
To capitalise on current rates, go for FDs of longer tenures.
Denne historien er fra May 23, 2024-utgaven av Business Standard.
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Denne historien er fra May 23, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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