State Bank of India (SBI), the country's largest public sector bank, recently announced a hike in its base rate, which will enable customers to earn higher returns on their fixed deposits (FDs). The bank has increased its base rate by 10 basis points, from 7.45% to 7.55%, effective from March 8th, 2023.
The move is aimed at encouraging customers to invest in FDs and earn better returns on their savings. FDs are considered a safe investment option, especially for those who are risk-averse, as they offer guaranteed returns and capital protection.
SBI's decision to hike its base rate is likely to prompt other banks to follow suit, as they compete for customers' savings. With inflation rates on the rise, it is important for individuals to explore investment options that can generate higher returns and keep pace with inflation.
Investing in FDs can be a good option for those looking for a secure investment option with a fixed rate of return. However, customers must do their due diligence, compare rates across banks, and choose a tenor that suits their investment goals before investing in FDs.
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