Government and non-government banks are continuously increasing FD interest rates after increasing the repo rate from RBI. Due to this, the average return on bank FDs has increased from 5.5 per cent to 7 per cent in the last one year.
In the recent past, it has been seen that small finance banks are paying more interest on investment in FDs than big banks. Unity Small Finance Bank is offering up to 9.5 percent interest to attract customers.
Interest rate on FD for general customers
According to the information given on the website of Unity Small Finance Bank, 8.75 percent interest is being given by the bank on FDs of 181-201 days. Investors are also being given 8.75 percent interest on 501 days special FD and 9.00 percent interest on 1001 days special FD.
Interest rate on FD for senior citizens
Senior citizens are being given additional interest of 0.50 percent by Unity Small Finance Bank. If a senior citizen opts for FDs of 181 to 201 days and 501 days, then he is being given an interest of 9.25 percent. At the same time, 9.50 percent interest is being given to investors on FD of 1001 days.
Repo rate increased by 2.50 percent
Last year, RBI started increasing the repo rate. Since then, the repo rate has been increased by 0.40 per cent in May 2022, 0.50 per cent in June 2022, 0.50 per cent in August 2022, 0.50 per cent in September 2022, 0.35 per cent in December 2022 and 0.25 per cent in February 2023. Due to this the repo rate has come down to 4.00 percent and 6.50 percent.
