These 5 banks are giving highest interest on 1 year FD, check interest rate before making fixed deposit. These 5 banks are giving highest interest on 1 year FD, check before making fixed deposit

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Photo:FILE fixed deposit

Indian Reserve Bank After the big increase in the repo rate by the Reserve Bank of India (RBI), all the major banks of the country have increased the interest rates on their fixed deposits ie FD several times to attract customers. Due to this, investing in FD has once again become beneficial. If you also want to invest in FD, then we are giving you a list of those five banks which are getting the highest interest on 1 year FD. Let us tell you that as a result of increasing the repo rate from time to time, the interest rates have increased by 2.25%.

These five banks are giving highest returns

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Fixed deposit

The rate of interest on FDs of all tenures is not the same

While investing, keep in mind that the interest rate on FDs of all tenures is not the same. If you are opting for the longest tenure option, do not assume that you will get the best interest. Calculate the compound interest and choose the period on your own in which you get the highest returns. A non-cumulative FD gives you regular returns. Whereas, Cumulative FD allows you to accumulate the interest amount and reinvest it along with your principal amount. Hence, you get an even higher return on your deposit, which is beneficial in the long run.

Get more interest on FD like this

If you want more interest on FD then avoid auto-renewal option. Banks generally offer auto-renewal option to customers investing in Fixed Deposits. If a customer chooses the auto-renewal option, the bank automatically renews the Fixed Deposit for the same period with the prevailing interest rate at the time of maturity. In this case, the current interest rate may be higher or lower than the previous fixed deposit interest rate. Due to this, investors may have to bear the loss. So whenever the FD tenure is over, do research and find out which bank and on which tenure is getting the highest interest. Only then invest.

Possibility of increase in repo rate

Significantly, to reduce inflation, RBI is increasing the repo rate. RBI has increased the rate by 2.25% since May. The meeting of the Monetary Policy Committee has started from today. It is likely to increase by 0.25%. That is, the increase in rates on FD may continue even further. This is good news for investors. After Corona, the banks had made a big reduction in the interest rates on FDs. Now it has started increasing. Since banks are yet to pass on the full rate hike benefit to FD investors, the interest rate on FDs is likely to rise further in the coming months.

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