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The <keyword id="19925636" type="General" weightage="20" keywordseo="stock-market" source="keywords">stock market</keyword> closed in the green, with benchmark indices hitting new all-time highs at the end of closing sessions on Monday. The <keyword id="19950208" type="General" weightage="20" keywordseo="BSE-Sensex" source="keywords">BSE Sensex</keyword> surged by 384.30 points, closing at 84,928.61, while the NSE <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> gained 148.10 points to settle at 25,939.05. Both indices ended the session driven by strong buying in sectors like auto, oil and gas, and <keyword id="19976433" type="General" weightage="20" keywordseo="financial-services" source="keywords">financial services</keyword>. Out of the Nifty 50 companies, 34 stocks advanced, while 16 declined. Bajaj Auto, Mahindra &amp; Mahindra (M&amp;M), ONGC, Hero Motocorp, and SBI Life emerged as the top gainers, contributing significantly to the market's rise. On the flip side, Eicher Motors, ICICI Bank, Divi's Labs, Wipro, and IndusInd Bank were the top losers, experiencing profit booking after recent rallies. The market's bullish momentum was largely influenced by anticipation surrounding the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>'s (RBI) Monetary Policy Committee (MPC) meeting to be held October 7 to 9 and its decision on the repo rate. As the market gears up for potential rate cuts, India VIX, a volatility index, spiked by more than 9 per cent, also reflecting investor caution. VLA <keyword id="19958748" type="General" weightage="20" keywordseo="ambala" source="keywords">Ambala</keyword>, Co-Founder of Stock Market Today, commented on the session's performance, highlighting the role of macroeconomic factors. "In today's session, the India VIX rose more than 9 per cent as the market awaits the MPC policy and <keyword id="21977342" type="General" weightage="20" keywordseo="repo-rate-cut" source="keywords">REPO rate cut</keyword> decision. Notably, India's fast composite PMI recorded a slightly slower growth in September. This is the slowest rate of growth in 2024 for the manufacturing and service sectors," she said. "According to me, to remain globally competitive, the RBI needs to match the US Fed rate, which will create a significant difference between India's lending growth and the long-term FD rates," she added. Ambala emphasized the importance of the RBI's decision in maintaining India's global competitiveness, particularly in comparison to the US Federal Reserve's rates. She noted that any repo rate cut by the RBI could inject more liquidity into the economy, potentially spurring a bullish trend in the equity market and benefiting asset classes like real estate. "If the RBI chooses a REPO rate cut, it will inject more liquidity into the economy, likely fueling a bullish market trend. On the other hand, account holders could enjoy better returns in asset classes such as the equity market and real estate," she said. "The banking and NBFC sectors are already responding to the potential rate cut, and we may see a decline of 100-200 bps points in the next 1.5 years. Since the market has been resilient, I believe it will adapt quickly to these economic changes," Ambala added. Currently, major indices such as Nifty, Bank Nifty, Financial Services, Mid Cap 100, Mid Cap 150, Next 50, FMCG, Consumption, Metal, Infrastructure, and Auto are trading at all-time highs. Sectors like NBFCs, Realty, Infrastructure, and PSU stocks are expected to remain in focus as potential rate cuts could open up significant opportunities for mid-term investors. The technical indicators show that the broader trend remains bullish, with the Relative Strength Index (RSI) for Nifty standing at 74 on the daily, 75 on the weekly, and 83 on the monthly timeframe. However, Ambala advised investors to approach the market cautiously. "The Nifty index can expect support levels at 25,870 and 25,680 with resistance at 26,050 and 26,130 in the next market session," she stated.

Sensex soars to 84,928, Nifty settles at 25,939 as stock market closes at all-time high

<ul><li>The reliability of FDs is appealing to seniors as they generally have a lower risk tolerance and prioritise capital preservation over high returns. </li><li><keyword id="20566" type="General" weightage="20" keywordseo="senior-citizens" source="Orion">Senior citizens</keyword> usually get a slightly higher interest in FDs. </li><li>FDs can help senior citizens effectively manage liquidity as well as <keyword id="37018" type="General" weightage="20" keywordseo="interest-rate" source="Orion">interest rate</keyword> risk. </li></ul>Senior citizens often prefer investing in <keyword id="6377620" type="General" weightage="20" keywordseo="fixed-deposits" source="Orion">fixed deposits</keyword> (FDs) due to the safety and stability these instruments offer. FDs provide a secure investment avenue with a guaranteed return on the principal amount, making them a low-risk option, especially for retirees seeking steady income streams. The reliability of FDs is appealing to seniors as they generally have a lower risk tolerance and prioritise capital preservation over high returns. The ease of FD investment, with options for short or long-term deposits, aligns well with the financial planning needs of seniors, providing them with a sense of financial security and a dependable source of income during retirement. Between May 2022 and February 2023, the Reserve Bank of India (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>) raised the repo rate by a cumulative 2.5%. This significant increase was a major driver of higher <keyword id="418668" type="General" weightage="20" keywordseo="fd-rates" source="Orion">FD rates</keyword> throughout 2023. Even though the RBI has maintained status quo henceforth, FD rates continue to remain on the higher side, thus making them attractive. “Senior citizens usually get 50 to 100 bps more interest than the general public by investing in fixed deposits. But the interest income is taxable at the hands of investors if the tenure is less than 5 years,” says Abhishek Kumar, founder and chief<a href="https://business.outlookindia.com/invest/investment"> </a>investment advisor at SahajMoney, a financial planning firm. Sr Citizen FD rates at a glance <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#1465c9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank Name </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#1465c9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Less than 1 year </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#1465c9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">1 year to 5 years </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#1465c9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">More than 5 years </td></tr><tr><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% p.a. to 6.25% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.00% p.a. to 7.50% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.50% p.a. </td></tr><tr><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% p.a. to 6.75% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.25% p.a. to 7.75% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.30% p.a. </td></tr><tr><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of Baroda </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 6.75% </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.25% p.a. to 7.75% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.50% p.a. </td></tr><tr><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% p.a. to 6.50% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.10% p.a. to 7.65% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.75% p.a. </td></tr><tr><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% p.a to 6.50% p.a </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.20% p.a. to 7.60% p.a. </td><td style="border-left:solid #000000 0.68181825pt;border-right:solid #000000 0.68181825pt;border-bottom:solid #000000 0.68181825pt;border-top:solid #000000 0.68181825pt;vertical-align:top;background-color:#ffffff;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.75% </td></tr></tbody></table> What to keep in mind When investing in FDs, senior citizens need to take a few things into account. When the rates are good, one can lock in some of their savings into FDs. “I advise senior citizens against locking all their disposable funds into FDs particularly of just one tenor,” says Akshar Shah, Founder, Fixed Invest, a digital marketplace of banks and NBFCs. “Senior citizens can use FD laddering to effectively manage liquidity as well as interest rate risk where they divide their savings into FDs of different tenors across years,” he adds. FD laddering involves diversifying FDs into multiple accounts with varying maturity dates. Instead of investing a lump sum in a single FD, individuals distribute their funds across different FDs maturing at different intervals—short-term, medium-term, and long-term. As each FD reaches maturity, it can be reinvested or withdrawn as needed, providing regular access to funds while potentially benefiting from higher interest rates on longer-term deposits. This strategy offers liquidity, steady returns, and flexibility in managing financial goals.

Senior citizen FDs: With interest rates at a high, time to park safe

<ul><li>Economies around the world are focusing on attaining growth and taming inflation by increasing borrowing rates. </li><li>The rising borrowing rate environment has made fixed-income products far more attractive compared with equity investments that are facing risks of high valuation and macro headwinds. </li><li>Analysts say that this is a good time to look at fixed-income products because the rate hike cycle has almost peaked. </li></ul>After a long time, fixed income products have emerged as an attractive investment opportunity, especially for retail investors. This is because economies are focusing on attaining growth and taming inflation by increasing borrowing rates. Due to high inflation, the US central bank has taken measures to stop its economic stimulus – also known as quantitative easing – that began as inflation rates shot up. The US Federal Reserve has raised interest rates by 450 basis points since March 2022. Its current benchmark interest rate is the highest since October 2007. The idea behind rising interest rates is that it will make borrowing costs higher, which can then cool off demand and slow down inflation. On the bright side, the rising borrowing rate environment has made fixed-income products far more attractive for Indian investors compared with equity investments that are facing risks of high valuation and macro headwinds. Investments into good old fixed deposits of banks have regained prominence with the rising rate cycle, as banks offer returns of about 7% on such products. Some bank with their revised <keyword id="35480" type="General" weightage="20" keywordseo="fixed-deposit-rates" source="Orion">fixed deposit rates</keyword> as on Feb 21 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Banks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FD rates for 2-3 years </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FD rates for 3-5 years </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">State Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.50% </td></tr></tbody></table> Source: Axis Bank, HDFC Bank, SBI, PNB websites Other fixed income instruments like non-convertible debentures (NCDs) are also offering higher yields to investors. For instance, redeemable NCDs issued by Avanse Financial Services recently offer a yield of 9.25% with a minimum ticket size of ₹1 lakh for a tenor of 36 months. Equities turn volatile A rise in the US interest rates does not bode well for the Indian equity markets, as it can lead to foreign investors pulling their money out from emerging markets like India to deploy it back in the safe and secure markets of the US or other more lucrative markets. As a result, foreign institutional investors (FIIs) have been selling consistently in India since December and moving their <a href="https://www.businessinsider.in/stock-market/news/foreign-investors-continue-to-pull-out-of-indian-stocks-sell-equities-worth-3431-crore-in-feb-so-far/articleshow/97698730.cms">investments from Indian markets to cheaper markets </a>like China, Hong Kong and South Korea, where valuations are attractive. In January, FIIs sold Indian equities worth ₹41,464 crore and in February, so far, they have sold ₹1,567 crore equities. Also, retail participation in equities dropped to a 34-month low in January due to a sharp fall in equities and a revival of fixed income in the <a href="https://economictimes.indiatimes.com/markets/stocks/news/retail-play-in-equity-continues-to-fall-hits-34-month-low/articleshow/98075535.cms">wake of rising interest rates</a>. “Equity and debt are two different asset classes. Nevertheless, asset allocation is very crucial for consistent long-term wealth creation. Having said that, looking at the current global and macroeconomic variables, fresh allocation to fixed-income products might be a wiser investment decision,” said Marzban Irani, chief investment officer – fixed income at LIC Mutual Fund. Irani says that this is a good time to look at fixed-income products because the rate hike cycle has almost peaked. Fixed-income products may remain attractive at least till 2024 Moreover, fixed-income products may continue to be attractive for investors till the Reserve Bank of India (RBI) does not cut interest rates. Since May 2022, India’s central bank has raised the repo rate – a key interest rate – by 250 basis points to 6.5%. “We do not expect any rate cuts this year in India and assign a low probability of rate cuts abroad also. In our view, the central banks may not be in a hurry to cut rates unless economic growth takes a severe downturn,” said Puneet Pal, head-fixed income at PGIM India Mutual Fund. Inflation print for January 2023 sprung a surprise with the consumer price index (CPI) rising to 6.52% while economists expected it to be between 6% to 6.2%. Economists expect inflation to cool down to 5% by April this year, comfortably below the upper tolerance limit of 6% set by the RBI. With inflation expected to cool down, analysts expect RBI to start cutting interest rates from next year. “The current yields present a good opportunity to invest in fixed income across the curve from a medium-term perspective as we expect RBI to start cutting rates from 2024 onwards. With inflation expected to soften towards 5% over the course of the next two quarters, the real yields will continue to be positive across the curve. Thus, we believe that it’s a good time to start constructing a fixed-income investment portfolio,” added Pal. For investors looking at a short-term investment horizon, Irani recommends funds in money market and liquid fund categories; and for those looking to invest beyond 3 years, he recommends medium-to-long-duration funds, banking &amp; PSU debt funds and gilt funds. SEE ALSO <a href="https://www.businessinsider.in/business/news/paytm-zomato-policybazaar-nykaa-companies-attain-spotlight-again-after-q3-performance/articleshow/98003305.cms">New age technology companies back in the spotlight after Q3 performance</a> <a href="https://www.businessinsider.in/stock-market/news/fiis-pump-in-6000-crore-in-5-sessions-as-emerging-markets-turn-attractive-again/articleshow/98017229.cms">FIIs pump in ₹6,000 crore in 5 sessions as emerging markets turn attractive again</a>

Fixed-income products attractive again as markets take a breather

These small finance banks are offering up to 9.5 percent interest rate on FD in 2023

<keyword id="6357560" type="General" weightage="100" keywordseo="idbi-bank" source="Orion">IDBI Bank</keyword> has introduced a <keyword id="2346698" type="General" weightage="20" keywordseo="limited-period" source="Orion">limited period</keyword> special 500 days deposit under the <keyword id="14779347" type="General" weightage="50" keywordseo="amrit-mahotsav-fd" source="Orion">Amrit Mahotsav FD</keyword> scheme, which will offer 6.70 per cent <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword>. Further, a special bucket of 500 days for US dollar designated FCNR (B) deposits is also introduced offering a peak rate of 3.63 per cent. Meanwhile, the bank has also revised the interest rates on term deposit across various tenors with effect from Monday. The bank is now offering the highest rate of 6.55 per cent on select tenors. Most banks are increasing their deposit rates for boosting deposit to support rising credit off-take as liquidity in the banking system has narrowed. The hike in deposit rates are in line with the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>'s 50 basis points hike in repo rate in the August monetary policy. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/nft-transactions-to-reach-40-mn-globally-in-5-yrs-amid-scam-threats-report/articleshow/93704271.cms">NFT transactions to reach 40 mn globally in 5 yrs amid scam threats-report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/pulses-like-urad-moong-arhar-and-oil-seeds-could-get-pricier/articleshow/93702821.cms">After rice, cereals and pulses could get pricier</a>

IDBI Bank revises interest rates on term deposits, introduces limited-period 500-day fixed deposit

Explained: With markets volatile, should senior citizens invest in PSU bank FDs?

<ul><li>The fact that the country’s central bank is expected to continue with interest rate hikes in the near term, the product remains attractive.</li><li>So far in two months up till now, RBI has increased the repo rate by 90 basis points to fight record inflation.</li><li>With this, RBI's policy repo rate currently stands at 4.90%.</li></ul>Private sector bank Yes Bank recently launched a <keyword id="148844" type="General" weightage="20" keywordseo="floating-rate" source="Orion">floating rate</keyword> <keyword id="74427" type="General" weightage="20" keywordseo="fixed-deposit" source="Orion">fixed deposit</keyword> (<keyword id="1005" type="General" weightage="20" keywordseo="FD" source="Orion">FD</keyword>) product offering for its domestic customers. The product’s interest rate is now being linked with the prevailing repo rate. What is a floating rate fixed deposit (FD)? This is a unique offering designed to benefit customers by enabling them with an asset class that offers the safety of a fixed deposit along with dynamic returns which are linked to the repo rates published by the central bank. This floating rate FD can be availed for a tenure of 1 year to less than 3 years, as per the customer’s preference. “The floating rate product is very attractive in a rising interest rate environment. People may get attracted towards this keeping in mind that they are anticipating rate hikes for one or one and a half years,” Dwijendra Srivastava, CIO – Debt at Sundaram Mutual Fund. The fact that the country’s central bank is expected to continue with interest rate hikes in the near term to fight the record high inflation, this product stands attractive as the return rate will only go up for some time. “For the next one year, interest rates will only go up. However, two or three years down the line interest rates will fall and that’s when people will miss out because in floating rates products the rates will be adjusted accordingly,” said debt market expert Joydeep Sen. The bank will reset the floating FD rate on a monthly basis i.e. on the first day of every month subject to change in repo rate. So far in two months up till now, RBI has increased the repo rate by 90 basis points. In May, RBI hiked the repo rate by 40 basis points and further increased it by 50 basis points. With this, RBI's policy repo rate currently stands at 4.90%. “The rising interest rates environment is expected to be there for at least a year till March 2023,” said Srivastava. The deposit amount can be as minimum as ₹10,000 but less than ₹5 crore. Experts believe this is kind of an innovative product at this point of time and will open up more banks to launch it, particularly the smaller and weaker ones, who will be more competitive. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/5g-in-india-does-the-aam-aadmi-even-need-it/articleshow/92382529.cms">5G in India – does the aam aadmi even need it?</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/heres-what-card-tokenization-is-and-how-to-tokenize-debit-and-credit-cards/articleshow/92403898.cms">Here’s what card tokenization is and how to tokenize debit and credit cards</a>

A floating rate fixed deposit can be a good investment, for the next one year

Credit rating agency <keyword id="7148798" type="General" weightage="100" keywordseo="acuite-ratings" source="Orion">Acuite Ratings</keyword> and Research said the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword>) will continue with monetary tightening and will hike the policy rate by 25 basis points (bps). In a report, Acuite Ratings expects the RBI to persist with monetary tightening to guard against the generalisation of core inflation pressures into a wage-price spiral. "After a hike of 25 bps in Apr-23, <keyword id="6369693" type="General" weightage="80" keywordseo="mpc" source="Orion">MPC</keyword> (<keyword id="6375120" type="General" weightage="50" keywordseo="monetary-policy-committee" source="Orion">Monetary Policy Committee</keyword>) could opt for a pause for impact assessment. The stance may change to 'neutral' only after core inflation witnesses a sustained decline to below 5 per cent," Acuite Ratings said. According to the report, over the last three months, inflation has begun to descend from peak levels across most economies in the world. The upshot from this development has been a step down in monetary policy aggression by most central banks despite the persistence of monetary tightening. The MPC on February 8, raised repo rate by 25 bps to 6.50 per cent. This takes the cumulative hike in repo rate to 250 bps since May-22. Although the average inflation forecast for FY23 saw a downward revision to 6.5 per cent and for Q4FY23 to 5.6 per cent, the central bank highlighted that core inflation continues to remain sticky around 6 per cent levels, Acuite Ratings said. "We continue to maintain our 10 year Government Securities yield call in the 7.10-7.50 per cent range for the near term. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/senior-citizen-fd-here-are-the-features-interest-rates-offered-by-various-banks/articleshow/98148773.cms">Senior citizen FD: Here are the features &amp; interest rates offered by various banks</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/mukesh-ambanis-jiocinema-to-take-on-disney-hotstar-and-amazon-prime-with-free-4k-ipl-streaming/articleshow/98150380.cms">Mukesh Ambani’s JioCinema to take on Disney+ Hotstar, and Amazon Prime with free 4K IPL streaming</a>

RBI-MPC may go for 25bps policy rate hike in April: Acuite Ratings

ICICI Bank new FD rates in comparison with those of SBI and HDFC Bank

<ul><li>Savings rates offer higher returns than <keyword id="6377620" type="UNKNOWN" weightage="20" keywordseo="fixed-deposits">fixed deposits</keyword> (FDs) as banks continue to slash <keyword id="492629" type="PERSON" weightage="20" keywordseo="FD-interest-rates">FD interest rates</keyword>.</li><li>This includes India’s largest bank, the State Bank of India (SBI) and the country’s biggest private lender, HDFC Bank.</li><li>Interest rates on FDs are at a 17-year low making it worth your while to keep your funds as-in in your savings bank account.</li></ul>Fixed deposits (FDs) are normally considered to be a safe haven for your money to rake up some extra interest on your savings. But the advantage of locking up your savings in FDs has all but disappeared. In fact, keeping your money as-is in a savings account will actually get you higher interest than locking it up in an FD. Banks are slashing interest rates on FDs — including India’s biggest bank, the State Bank of India (SBI) and India’s largest private lender, HDFC Bank. In fact, interest rates on FDs have plunged to a <a href="https://www.financialexpress.com/industry/banking-finance/interest-on-deposits-drops-to-17-year-low/1972975/">17-year low</a>. This stems from the fact that the Reserve Bank of India (RBI) has been slashing its repo rate — the rate at which banks can earn interest on their stashed deposit with the central bank. Because the repo rate’s been cut, the deposit rates have plummeted as banks pass on the burden. Banks offering higher savings rate than FD interest rates: <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Savings rate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FD interest rate </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.80% to 6.50% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.30% to 5.70% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 6.50% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.00% to 6.00% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Mahindra Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 5.50% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.00% to 5.00% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 6.60% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 6.10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% to 6.25% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 5.75% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Canara Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% to 6.20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% to 5.70% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.75% to 6.25% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.25% to 5.75% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of Baroda </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% to 6.20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% to 5.70% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.50% to 7.75% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% to 7.25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.50% to 6.30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.00% to 5.80% </td></tr></tbody></table> Savings may take another hit The actual amount of money that people are putting into the banks has been increasing as spending opportunities shrink under the ongoing coronavirus pandemic. For the fiscal year ending in March 2020, deposit growth fell to around 8%. However, this financial year, deposits have grown by 1.9% in the first two months — before starting to fall again are lockdown relaxations came into play. Before the pandemic, the picture was not quite as rosy. In FY19, household savings fell to 18% as compared to 23% in 2012, according to the Central Statistics Office (CSO) — a drop of around 5%. Cutting down on FD rates and keeping them there even after the economy opens up is a good way to keep money flowing and liquid funds in the hands of consumers — but it’s not so good for generating savings. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/sbi-indusind-bank-bank-of-baroda-icici-bank-downgraded-as-paytms-paytms-vijay-shekhar-sharma-warned/articleshow/75570240.cms">The downgrade of SBI, Bank of Baroda, and ICICI Bank is proof that the 'biggest nightmare' for India's financial sector is becoming real</a> <a href="https://www.businessinsider.in/finance/news/sbi-axis-bank-and-kotak-mahindra-bank-and-other-banking-stocks-are-raising-capital-to-fill-npa-hole/articleshow/76054599.cms">Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes</a> <a href="https://www.businessinsider.in/stock-market/markets/news/sbi-share-price-is-up-5-are-brokerages-raise-target-prices-to-over-200/articleshow/76254529.cms">SBI share price is up 5% as brokerages raise target prices to over ₹200</a>

You Searched For "fd rates in bank" and got 13 results

Sensex soars to 84,928, Nifty settles at 25,939 as stock market closes at all-time high

ANI

Senior citizen FDs: With interest rates at a high, time to park safe

Anagh Pal

Fixed-income products attractive again as markets take a breather

Bhakti Makwana

These small finance banks are offering up to 9.5 percent interest rate on FD in 2023

Rahul Verma

IDBI Bank revises interest rates on term deposits, introduces limited-period 500-day fixed deposit

IANS

Explained: With markets volatile, should senior citizens invest in PSU bank FDs?

Anagh Pal

A floating rate fixed deposit can be a good investment, for the next one year

Bhakti Makwana

RBI-MPC may go for 25bps policy rate hike in April: Acuite Ratings

IANS

ICICI Bank new FD rates in comparison with those of SBI and HDFC Bank

BI India Bureau

Keeping your money in a savings account will fetch you more interest than locking it up in a fixed deposit

Prabhjote Gill

Banks Slash FD Interest Rates: Compare To Know How Much Do These Banks Offer Now

BI India Bureau

Interest rates on deposits need to go up, say experts, as share of FDs in household financial assets drops

Rounak Jain

Debt MFs catch investor fancy as their returns go up to 23%

Bhakti Makwana

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