The clear effect of loan uptake increasing at a faster rate than the pace of increase in deposits is being seen in banks. To deal with the cash crunch, banks raised the fixed deposit (FD) rates. As a result, the interest rate on FD reached 9% in October. Currently, many banks are paying 7% to 9% interest on three-year FDs. Northeast Small Finance Bank has the highest interest rate of 9%, Suryoday Small Finance Bank at 8.6% and Utkarsh Small Finance Bank at 8.5%. Among private banks, the FD rate of DCB Bank is 7.55%, RBL Bank at 7.5% and SBM Bank India at 7.3%.
Interest rate on bank FD reached 9% in October
