Good news for FD investors! THIS Bank hikes fixed deposit interest rates, check new rates & policy terms

Retail inflation in India is increased by approx 0.4 percent. As the result, Banks increased the interest rate on FDs. Following suit, Sundaram Finance Ltd. also increases the rate. Let us figure out whether the new rate of interest, FD terms, and related details are how lucrative deals for you.

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New Delhi: Retail inflation in India, as determined by the Consumer Price Index (CPI), increased from 7 percent in August to a five-month high of 7.41 percent in September 2022. RBI continues to increase repo rates in tranches from a month ago to control inflation. As a result, the interest rate offered on fixed deposits continues to rise. Lenders offer better returns to customers as people take and invest in fixed deposits as a safe and guaranteed return.

With effect from October 16, 2022, the interest rates on term deposits for the general public and elderly citizens for tenures of one to three years have been raised by leading non-banking finance company Sundaram Finance Ltd. According to a statement, the rate on a 12-month deposit has increased for the general public to 6.65 percent. ()

For the first 24 months, the rate was increased to 7 percent, and for the next 36 months, it was raised to 7.30 percent. Seniors will receive 0.35 percent more interest for one, two, and three years, respectively. Specifically, 7.00 percent, 7.35 percent, and 7.65 percent. ()

The new interest rate is not applicable to the existing deposits. For the existing  Fixed Deposit, the interest rate remains the same until the maturity. For maturity or the renewal of the FD, one must have completed 60 years till the date of maturity or renewal.

The company now has 4219 crore in deposits. The minimum deposit in the account of the consumer is Rs 10,000.