Money is precious to all of us. We work hard to earn money and most of us wish to save it for the future. It is due to this very reason that we invest our money in a long term fashion in fixed deposit programs. It provides high interest funds on your regular savings account till the time of maturity. The interest rates differ from bank to bank.
We understand that you wish to have the best deal of interest for your hard earned money. It is due to this reason that we understand it is imperative to understand and figure out the factors that can affect your fixed deposit rates.
We have put down 4 different reasons which may influence the fixed deposit rates of your bank account:
1) The RBI policies:
The RBI is the regulating body of all the banks in India and has the power of imposing many norms and restrictions to a maintain credit control and inflow of cash in the nation. It is due to this reason that your fixed deposit rates can be altered even though you do not expect it to.
2) Recession:
Recession is a temporary period of time in a nation’s economy when industry and trade activities diminish. It mostly happens when the GDB crashes or falls rapidly for two consecutive quarters. Due to the shutdown of the economy at the times of recession, the RBI imposes reduced rates on bank interests to release capital into the market system. This can therefore tamper with your interest rates on a fixed deposit.
3) Inflation:
Inflation is completely different from recession, where the government starts printing more money and the prices of goods increases rapidly. Due to this, often the value of the currency decreases in the world market. In situations like this, one can expect their interest rates in the fixed deposit banks to go higher.
To calculate what is going on in your fixed deposit account, several banks provide instruments like fd calculators. It considers inputs such as the deposit amount, rate of interest, and deposit tenure to find out the amount you will receive during the time of your fixed deposit maturity.
Along with that, the fixed deposit calculator gives you the chance to compare the deals given by each bank so that you can deduce which plan is the best for your money.
We understand that you wish to have the best deal of interest for your hard earned money. It is due to this reason that we understand it is imperative to understand and figure out the factors that can affect your fixed deposit rates.
We have put down 4 different reasons which may influence the fixed deposit rates of your bank account:
1) The RBI policies:
The RBI is the regulating body of all the banks in India and has the power of imposing many norms and restrictions to a maintain credit control and inflow of cash in the nation. It is due to this reason that your fixed deposit rates can be altered even though you do not expect it to.
2) Recession:
Recession is a temporary period of time in a nation’s economy when industry and trade activities diminish. It mostly happens when the GDB crashes or falls rapidly for two consecutive quarters. Due to the shutdown of the economy at the times of recession, the RBI imposes reduced rates on bank interests to release capital into the market system. This can therefore tamper with your interest rates on a fixed deposit.
3) Inflation:
Inflation is completely different from recession, where the government starts printing more money and the prices of goods increases rapidly. Due to this, often the value of the currency decreases in the world market. In situations like this, one can expect their interest rates in the fixed deposit banks to go higher.
To calculate what is going on in your fixed deposit account, several banks provide instruments like fd calculators. It considers inputs such as the deposit amount, rate of interest, and deposit tenure to find out the amount you will receive during the time of your fixed deposit maturity.
Along with that, the fixed deposit calculator gives you the chance to compare the deals given by each bank so that you can deduce which plan is the best for your money.
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