Last updated:
Banks have recently changed their fixed deposit (FD) rates. If you do FD of Rs 5 lakh, then how much return you will get after five years? Let’s know
After the Reserve Bank of India (RBI) reduced the repo rate by 5.5% in the June monetary policy review of June, most banks have changed their fixed deposit (FD) interest rates. After this change, FD rates have reduced even more. The RBI Monetary Policy Committee (MPC) had cut the repo rate by 50 basis points on 6 June.
MPC also announced a repo rate cut in April. Which is not known, tell them that the repo rate is the rate on which the RBI gives loan to the commercial banks. Low repo rate is beneficial for those taking loans, but its negative effect is on the interest received on FD and service accounts.
The country’s largest bank, State Bank of India (SBI) has reduced its FD rates from 6.5% to 6.25% for a period of one to two years. Similarly, HDFC Bank, Bank of Maharashtra, Axis Bank and other banks have also reduced their FD rates to 6.25% on deposits of up to Rs 3 crore for a period of one year.
For five years, SBI is offering an interest rate of 6.05% per year, while HDFC is giving 6.4% returns. Other banks are also giving returns in this range. Therefore, investors who want to invest money in FD should see if FD returns match with their financial goals.
Suppose, you have invested 5 lakh rupees in FD for five years in HDFC, so let’s see how your fund will increase. HDFC is paying 6.4% interest at Rs 5,00,000. In five years, a interest of Rs 1,86,823 will be received at Rs 5 lakh. That is, after 5 years, you will get a total of Rs 6,86,823.
By the way, returns from FD are not very attractive, but they are an important part of the portfolio. They are safe, so people consider here.
