SBM Bank India introduces special fixed deposit rates; check details here

SBM Bank India has just unveiled an exclusive rate to commemorate the commencement of the New Year for both Residents and . The scheme is running from January 8 to January 23, 2024. New fixed deposit rates on offer The updated rates are applicable for amounts below 2 crore, encompassing both callable and non callable FDs.

Within this, individuals have the opportunity to get the following rates: Furthermore, for senior citizens, SBM Bank India is extending an additional 0.5% advantage on the special FD rates, specifically designed for Resident Indian senior citizens. Rise in FD rates Before this, numerous banks had raised their FD rates to address the year end credit demand.

While there is no clear indication that interest rates have reached their zenith, many cautious investors are eager to assess the advantages of the recent uptick in FD rates across various banks. An examination of the uptick in FD rates reveals a comparatively gradual increase in banks’ FD rates compared to the surge in the .

Undoubtedly, banks are striving to enhance the attractiveness of their deposit rates to draw in additional deposits, particularly in light of the recent provisioning requirement on unsecured loans by the Reserve Bank of India (RBI). The infusion of more liquidity aids banks in effectively managing their assets and liabilities over the long term.

Should you invest? While there's an option to invest for up to five years, the question arises: Are the new interest rates worth the wait? Additionally, is it advisable to tie up your finances for an extended period, potentially leading to liquidity constraints when needed? Some investors might consider securing the current peak rates, especially in the one to two year tenure, as this is when most banks typically present their most favourable rates.

Furthermore, it is advisable to steer clear of investments in fixed deposits with tenures surpassing two to three years, as longer term commitments may not yield as many benefits as alternative investment options. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.