The interest rate of FDs of companies after banks has also decreased by 5 to 8.5 percent

New delhi date. February 28, 2020, Friday

After the country's largest bank, State Bank of India, reduced interest rates on FDs, several companies have also reduced interest rates on FDs. Few investors who invest large sums in corporate fixed deposits have been disappointed. Many companies have reduced their FD rate by 2-5 basis points.

The companies have taken this decision after the SBI reduced interest rates. Bajaj Finance will reduce its FD rate by 5 basis points in the first week of March. Mahindra Finance and PNB Housing Finance have also reduced their FD rates by 3-5 points this month.

After the interest rates were reduced, the maximum FD rate of Bajaj Finance has been reduced to 8.5 percent while Mahindra Finance's maximum FD rate has been reduced to 8.5 percent. The maximum FD rate of PNB Housing Finance has risen to 8.5%. However, senior citizens are given 5 basis points extra interest.

All these companies have lowered interest rates on their FDs after SBI reduced interest rates. HDFAC Bank, the leading private bank, is also paying 8.5 per cent interest on FD. However, according to experts, investors should continue their investment in FDs of companies as banks get more returns from FDI than 2 to 5 basis points.