People who deposit money in banks in fixed deposits (FD) and other schemes can now get more interest than before. Banks are working towards making their schemes attractive. Private and public sector banks are likely to announce this in the coming days. Banks are going to make especially short-term schemes more attractive.
During the last few years, the amount deposited in banks has decreased. The biggest reason behind this is that now people are taking their savings to those places where they see more profit in the form of higher returns. Therefore, people are not shying away from investing their deposits in risky places because they are getting higher returns in other places. In such a situation, from the Ministry of Finance to the Reserve Bank of India, banks are being told that they have to make their schemes attractive. This issue was also raised in the meeting of the Board of Directors on Saturday.
Can provide more risk cover
Meanwhile, a senior official of a leading public sector bank says that all banks have been working on this since March. Some banks have made their FDs attractive, but now the time has come for a big change in it. Now banks are considering increasing the interest rate on FDs as well as offering risk cover (accident insurance).
Many banks have increased the accident insurance on savings accounts to Rs 5 lakh. However, along with this, the minimum amount in the bank account has also been increased so that people keep some amount in the savings account. But now the stock market and other investment options are giving good returns, due to which banks will also have to make it attractive.
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Getting more returns in other places
The Financial Standing Report released by the Reserve Bank last month shows that while banks are giving annual returns of 7.0 to 7.75 percent, people have got good returns by buying shares in the stock market and investing in mutual funds in the past years. The report said that people investing in the Nifty-50 index have got a return of 28.6 percent in a year. Not only this, people are also getting good returns by investing in property and other places. Along with this, good returns are also being received by investing in bonds and non-financial institutions.
Status of returns from Nifty index in past years
Year 50 Midcap 150 Smallcap 250 Microcap 250
Note- Figures are in percentage terms which are linked to various Nifty indices
Current status of returns on FD in banks
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