Bank Deposit Rates Hike: RBI has announced to increase the repo rate for the sixth time in a row. Due to this announcement of RBI, it is bound to make the loan costlier. But there is good news for those who are preparing to deposit their hard earned money in banks through fixed deposits or recurring deposits. In the coming days, banks may soon announce an increase in interest rates on deposits.
Last month, banks like ICICI Bank, RBL Bank, Axis Bank and IDFC First Bank had announced to increase interest rates on deposits. Public sector banks have also increased deposit rates. ICICI Bank is giving 7.15% interest on some of its deposits, RBL Bank is also giving 7.55% interest bank on FD. Anyway, there is competition among the banks to woo the depositors. So that the availability of cash can be fulfilled to meet the increasing demand for loans. On May 4, 2022, RBI started the process of increasing the repo rate since then banks have continuously made loans costlier. But the banks did not increase the deposit rates at the same rate at which they made loans costlier. After which people are preferring to invest instead of mutual funds.
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