Interest rates on fixed deposits goes higher, Senior citizens to get 8 percent interest rate
By Lokmat English Desk | Published: February 8, 2023 12:54 PM2023-02-08T12:54:05+5:302023-02-08T12:54:05+5:30
Next 
In the wake of the recently presented Union Budget increasing the investment limit in monthly schemes of Post Office as well as savings schemes for senior citizens, banks have also increased the interest on fixed deposits to attract customers.
Interestingly, on Wednesday, the Reserve Bank of India is going to announce the bi-monthly credit policy. A further 0.25 per cent hike in the repo rate is expected in this. If this rate hike is announced, just like the increase in the interest rate on the loan, the fixed deposit will also increase.
Interest rate hike to attract customers - From last May to December 2022, the Reserve Bank of India hiked interest rates seven times. Interest rates increased by 2.25 percent in the eight months from May to December.
- All these increases in interest rates were imposed by the banks on the borrowers and thereby started charging new interest. However, after the first two rate hikes, there was no increase in fixed deposit rates.
- After the third rate hike, banks also started increasing interest rates for fixed deposit customers. Interest rates on fixed deposits have increased by 0.60 percent in the last six months.
- However, after increasing the limits of savings schemes and senior citizen schemes in the Union Budget and changes in the tax system, some more money will continue to play in the hands of the people.
- Banks have not only increased interest rates, but also increased investment limits. 7.55 to 8 percent interest has been announced for senior citizens for long-term fixed deposits up to Rs 2 crore.
