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RBI Update: Good news for bank FD holders, after this decision of RBI, more interest will be available on fixed deposits!


If you invest through a bank FD (Fixed Deposit), then there is good news for you. You may soon get the benefit of higher interest rates on FD. The Reserve Bank (RBI) has decided to revise the definition of bulk as a 'single rupee fixed deposit of Rs 3 crore or more' for scheduled commercial banks and small finance banks. RBI Governor Shaktikanta Das said that the limit of bulk deposits was last increased from Rs 1 crore to Rs 2 crore in 2019.

How to get more interest?
According to the proposal announced by RBI, now bank fixed deposits (Meaning FD in Hindi) of Rs 3 crore and above will be considered bulk deposits. Currently, bank FDs of Rs 2 crore and above are considered bulk FDs. The disadvantage of this is that lower interest rates are available on bulk FDs as compared to retail FDs. In such a situation, after the bulk deposit limit increases, FD investors can earn more interest by making FDs of more money.

How is the interest rate decided?
It is completely up to the banks to decide the interest rate on their fixed deposits. This is the reason why the interest rate on FD is also different in most banks. This thing depends on the period of the fixed deposit and the age of the investor. Banks usually offer different interest rates on deposits according to their needs and asset-liability management (ALM).

Benefits of bank FD
Your money is completely safe in fixed deposits.

The returns in this are not affected by the fluctuations of the stock market.

The interest on FD is higher than that of normal savings accounts.

You also get the facility of taking a loan on FD.

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