4 Replies to “How we get better interest rates on bank deposits?”



  1. When RBI increases interest rates, the new rate will not apply to old deposits. If you want to avail new interest rate then you have to prematurely close your old deposit and make a new one.

    The problem here is that while prematurely closing your old deposit you have to pay 1-2% penalty on the entire period. So you have to take into consideration this penalty against the advantage of new rate.

    If the deposit is about 2 years old your loss is high. If the deposit is just 2-3 months old then you can renew.

    HMT


  2. The coming monetary policy is expected to bring rise in deposit rates.
    New rates will not be applicable to old deposits.
    By breaking the running FD’S and making fresh deposits is not a wise idea, and is a loosing proposition in the long run.





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