Bank Deposits: At the recent Monetary Policy Review Meeting, the RBI did not make any changes to the report. However, interest rates may be lowered next fiscal year. This may also affect interest rates on term deposits. But now let’s know about some small finance banks that offer high interest rates on deposits. The Reserve Bank of India (RBI) has kept interest rates unchanged for the 10th time in a row. After that, banks and small and medium financial institutions charge high interest rates on FDs. By taking advantage of this opportunity and investing in FDs, you can also get low interest rates. Next, let’s talk about small finance banks. The bank offers an interest rate of 9% on 3-year FDs. At the same time, 1-year FDs earn 7% interest.
Northeast Small Business Finance Bank:
North East Small Finance Bank (NESFB) is offering 9% interest rate on 3-year FD to the general public. On the other hand, the interest rate for a 1-year FD is 7% and for a 5-year FD is 6.25%. Term deposits provide investors with a fixed interest rate on the amount they deposit with the bank for a set period of time. This can be determined using a term deposit yield calculator. Early cancellation of a term deposit refers to an investor canceling a term deposit before its maturity date. FD interest rates are high as RBI will hike rates multiple times in 2022. The interest rate varies depending on the holding period of the FD, investment amount, bank, and fluctuations in repo rate.