Loss to your savings due to inflation, the money deposited in Fixed Deposit is decreasing instead of increasing

महंगाई के कारण आपके सेविंग्स को हो रहा नुकसान, Fixed Deposit में जमा किया पैसा बढ़ने की जगह घट रहा है

Due to rising inflation, people’s fixed deposits are now seen as a loss deal. RBI said that this year the inflation rate will be 5.3 percent.

New Delhi. Fixed Deposit i.e. FD is the traditional instrument of investment and most of the people invest in it in a big way. However, due to rising inflation and dwindling returns, fixed deposits on a net basis are now seen as a loss-making deal. Inflation data for September has been released today.

Retail inflation in September stood at 4.35 per cent

RBI last week has projected retail inflation to be at 5.3 per cent in the current financial year. The returns that the country’s largest bank gives on 1 year fixed deposits, if you compare it with the inflation rate, then you are getting negative returns on FD on a net basis. The depositors will suffer a loss of minus 0.30 per cent here on an annual basis. In simple words, your money is decreasing instead of increasing.

Inflation rate stood at 5.3 percent:

In the month of August, the retail inflation rate stood at 5.3 per cent. State Bank of India is offering an interest between 5 per cent and 5.50 per cent on one year FDs. It is offering an interest of 5.10 per cent on fixed deposits of 2-3 years and 5.30 per cent on tenures of 3-5 years. This is less than or equal to the estimated inflation for the current financial year. The interest rate for FDs of 5-10 years is 5.40 per cent and for senior citizens it is 6.20 per cent.

How much is SBI, HDFC Bank giving returns:

On the SBI side, HDFC Bank offers an interest rate of 4.90 per cent for fixed deposits of 1-2 years, while it is 5.15 per cent for 2-3 years. However, small savings schemes run by the government are giving better returns than the fixed deposit rates of banks. The interest rate for fixed deposits of 1-3 years under small savings schemes is 5.5 per cent, which is higher than the inflation target.

Similar situation will remain for some time:

Vivek Iyer, Partner, Grant Thornton India said that real rates are going to be negative for some time and it is important that people choose the right investment option based on financial literacy. Resurgent India Managing Director Jyoti Prakash Gadia said the higher risk options have shown phenomenal growth, which is expected to continue till inflation is contained or bank deposit rates rise.

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