According to the bank website, term deposits with a maturity of 185 to less than one year now pay 4.65 percent from earlier 4.60, an increase of 5 basis points, while those with a maturity of one year to two years will fetch 5.35 percent interest from 5.30 percent. Interest rates of other tenors remain unchanged.
will now offer a 5.50 percent interest rate on two-year and one-day to three-year fixed deposits, and a 5.70 percent interest rate on three-year, one-day to five-year fixed deposits. For tenor five years one day to ten years, the interest rate offered is 5.75 percent.
Make best of FD ladder
One of the best methods for managing fixed income instruments is to create an FD ladder. Senior citizens in particular who rely heavily on these products for investing might make good use of it to increase return and control liquidity. Instead of booking one large FD for the long term, you break it into sections when making an FD ladder.
Here is some math and an illustration: Let’s say you have 3 lakh rupees on hand. Instead of investing money in one large investment for three years, you divided it into three smaller investments, each for one year, two years, and three years. You essentially build a ladder out of the money by investing it in three different FDs, each of which matures a year later.