It is a good time for depositors as banks have raised charges constantly over the previous 10 months on their fastened deposits.

The newest hike got here after the Reserve Financial institution raised the repo price by 25 foundation factors final week in a bid to tame inflation. Banks have been swift in passing on the hike. Bigger banks are actually providing a set deposit price between 6% and seven%, whereas some smaller banks are providing charges of as much as 9%. 

The State Financial institution of India raised rates of interest by 5–25 foundation factors on fastened deposits beneath Rs 2 crore with impact from Feb. 15. It launched a selected scheme with a tenure of 400 days and providing a 7.10% price. Senior residents are the most important beneficiaries as they earn a premium on the traditional charges at 7.60%. The scheme shall be legitimate until March 31.