FD rates to get more attractive? RBI's 35 bps rate hike makes a case4 min read 07 Dec 2022, 05:12 PM IST
The transition of 35 basis points repo rate hike to FD rates is expected to be on a slower pace. Nevertheless, banks are likely to enter into an interest rate-war for offering alluring FDs.
Once again, depositors are in for a treat and the reason would be RBI's 35 basis points rate hike on Wednesday for December policy. When the central bank hikes the policy repo rate, both fixed deposits and lending rates are likely to go up as well. Banks have been hiking their FD rates aggressively in line with RBI's policy outcomes since May, making this investment option already attractive. Senior citizens tend to benefit the most in such cases as banks offer higher interest rates than the normal category.
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