hear the news
hear the news
The most efficient way is to approach those banks or financial institutions, which are giving you high interest on deposits and giving cheap loans. In fact, the biggest impact of the increase in interest rates so far is on the old borrowers who have taken loans as they have to pay more interest.
To attract new customers, banks or financial institutions are giving them loans at low interest. In such a situation, it is better that you also become a new customer and transfer your loan to another bank or financial institution.
- Make repayment as much as possible up to two years from the loan tenure as the lending institutions charge loan interest only in the first two years.
- In such a situation, if you deposit some money, then the principal amount will be deducted more in your installment and the interest will be less. This will result in huge savings in the long run.
- On the other hand, you can also find a solution for the low interest available on the PF account. For this, withdraw some money from PF and invest it in such schemes, in which you are getting more than 8.1 percent interest.
Your loan will be more expensive from August. It is also possible that the RBI may hike the repo rate by 0.25 per cent in August, amid the forecast of a rate hike of 0.40 per cent in May and 0.40-0.50 per cent in June.
Experts say that by the end of this year, the central bank can increase the repo rate to the level of 5.15 percent before Corona. This means you have to be prepared for a 1.15 per cent hike in the repo rate.
Since the repo rate hike in May, all banks have made their loans expensive two to three times so far. In comparison, there has been a marginal increase in the interest earned on your deposits. So far, only a few banks have passed on the benefit of increase in cash reserve ratio (CRR) to customers. In such a situation, the easy way to get rid of low deposit interest is to look for an option where you get more interest.
ways to get more interest
Many corporates are paying high interest on deposits. In particular, there are some non-banking financial companies (NBFCs), which have increased the interest on deposits to 8 per cent at the end of May. In such a situation, it is better to adopt such a route than bank FDs because if the interest rate does not get 3-4 percent more than the inflation rate, then what you are thinking of as savings is a loss-making deal.
wait till august
If you want to deposit money, then deposit it now for two-three months only. RBI may increase CRR once more in August. In such a situation, you can get about one percent more interest on your deposit in August as compared to May. When banks increase FD rates, of course corporates will also increase rates. -DD Sharma, Financial Advisor
Expansion
Waqar Naqvi, Managing Partner, It Standard Ventures LLP, says that the interest rate cut on the EPF account after the RBI raised policy rates has given a big blow to the common people. In the midst of ever-increasing inflation, people need to make such a plan, so that you get more interest on the deposit and the loan installment is less.
The most efficient way is to approach those banks or financial institutions, which are giving you high interest on deposits and giving cheap loans. In fact, the biggest impact of the increase in interest rates so far is on the old borrowers who have taken loans as they have to pay more interest.
To attract new customers, banks or financial institutions are giving them loans at low interest. In such a situation, it is better that you also become a new customer and transfer your loan to another bank or financial institution.
- Make repayment as much as possible up to two years from the loan tenure as the lending institutions charge loan interest only in the first two years.
- In such a situation, if you deposit some money, then the principal amount will be deducted more in your installment and the interest will be less. This will result in huge savings in the long run.
- On the other hand, you can also find a solution for the low interest available on the PF account. For this, withdraw some money from PF and invest it in such schemes, in which you are getting more than 8.1 percent interest.
Loans will be more expensive from August
Your loan will be more expensive from August. It is also possible that the RBI may hike the repo rate by 0.25 per cent in August, amid the forecast of a rate hike of 0.40 per cent in May and 0.40-0.50 per cent in June.
Experts say that by the end of this year, the central bank can increase the repo rate to the level of 5.15 percent before Corona. This means you have to be prepared for a 1.15 per cent hike in the repo rate.
Since the repo rate hike in May, all banks have made their loans expensive two to three times so far. In comparison, there has been a marginal increase in the interest earned on your deposits. So far, only a few banks have passed on the benefit of increase in cash reserve ratio (CRR) to customers. In such a situation, the easy way to get rid of low deposit interest is to look for an option where you get more interest.
ways to get more interest
Many corporates are paying high interest on deposits. In particular, there are some non-banking financial companies (NBFCs), which have increased the interest on deposits to 8 per cent at the end of May. In such a situation, it is better to adopt such a route than bank FDs because if the interest rate does not get 3-4 percent more than the inflation rate, then what you are thinking of as savings is a loss-making deal.
wait till august
If you want to deposit money, then deposit it now for two-three months only. RBI may increase CRR once more in August. In such a situation, you can get about one percent more interest on your deposit in August as compared to May. When banks increase FD rates, of course corporates will also increase rates. -DD Sharma, Financial Advisor