There are two key reasons of locking your savings at the current interest rate. One, the interest rates have reached the peak as a result of the RBI’s monetary policy. Second, these rates may see a decline towards the end of this calendar year.
Fixed Deposits (FDs) have been considered as one of the safest ways to park money, save taxes and other benefits. Throughout the tenure of the FD, the interest rate remains constant beating inflation and most fixed deposit schemes offer a higher rate of interest than that offered by regular savings account schemes. aaa
FDs provide higher interest rates than regular savings accounts. Reports suggest that SBI and HDFC will end their special fixed deposit plans on March 31.
The interest rate offered by HDFC Bank is now 7.15 percent for deposits held for between 15 months and two years, and 7 percent for deposits maintained for between two years and one day and ten years.