IndusInd Bank has increased the interest rates on fixed deposits (FD). After this change, on making FD in the bank, ordinary citizens will get annual interest ranging from 3.50% to 7.99%.
The bank is offering annual interest ranging from 4% to 8.49% to senior citizens. Changes in interest rates have been made on FDs of less than Rs 3 crore. The new rates have come into effect from November 26.
It is important to keep these 4 things in mind before investing money in FD…
1. Do not invest all the money in one FD If you are planning to invest Rs 10 lakh in an FD in one bank, instead invest in 9 FDs of Rs 1 lakh each and 2 FDs of Rs 50,000 each in more than one bank. With this, if you need money in between, you can arrange for the money by breaking the FD midway as per your need. The rest of your FD will remain safe.
2. Withdrawal of interest Earlier there was an option to withdraw interest on quarterly and yearly basis in banks, now in some banks monthly withdrawal can also be done. You can choose it as per your need.
3. Also see the interest rate of loan available on FD You can also take a loan against your FD. Under this, you can take loan up to 90% of the value of FD. Suppose the value of your FD is Rs 1.5 lakh, then you can get a loan of Rs 1 lakh 35 thousand. If you take a loan against FD, you will have to pay 1-2% more interest than the interest you get on fixed deposits. For example, suppose you are getting 6% interest on your FD, then you can get a loan at 7 to 8% interest rate.
4. Senior citizens get more interest Most banks offer up to 0.50% higher interest on FD to senior citizens. In such a situation, if there is a senior citizen in your house, then you can earn more profit by getting an FD made in his name.
Graphics Source: VaskarAssets
