Portfolio Management: Amid the hawkish Reserve Bank of India (RBI) interest rate hike, various Indian banks have announced hikes in fixed deposit (FD) interest rates over the past few months. State Bank of India (SBI) recently announced an FD rate hike of up to 80 basis points, while Canara Bank announced an FD rate hike of up to 135 basis points. Apart from them, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank are some of the lenders who have increased interest on time deposits recently. Today, two public banks, Canara Bank and Union Bank of India, offer 7% fixed interest rate on deposits. Thus, traditional bank FD rates should attract investors who had turned to equities during the post-Covid stock market rebound. However, the increase in bank term deposits will not make mutual funds and direct equity investments less attractive. But, from a portfolio diversification perspective, this would certainly present a challenge for equity investors, as debt mutual funds are expected to regain their shine in times of high bank interest rates.
The U.S. Federal Reserve has warned of the potential for financial distress hurting the economy if interest rates rise to higher than expected levels, in a report that highlights stakes in its drive to control inflation tenacious. The central bank’s latest financial stability report released on Friday highlighted a constellation of risks including a weaker […]
fd interest rate: up to 7.5% interest on term deposits: these 5 banks offer the highest interest rates over 3 years FD
Banks have raised their fixed deposit (FD) interest rates following consecutive hikes in repo rates by the Reserve Bank of India (RBI) since May 2022. RBI has raised the repo rate by a total of 190 basis points (bps) since May Fixed deposits are among the most popular investment options for many investors, especially conservative […]
The March budget projected interest payments on the public debt to rise from $17 billion this fiscal year to $25.6 billion by 2025-26. But that was based on much lower interest rates than the government is currently facing. Loading Independent economist Stephen Koukoulas compared the situation on the budget to that of people who had […]