InvestorQ : How are fixed deposit rates determined?
Ishita Jain made post

How are fixed deposit rates determined?

Answer
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Rishita Das answered.
2 years ago


Fixed deposit rates are decided by the banks in India, although the central bank- Reserve Bank of India (RBI) controls and monitor the same. From time to time, the RBI keeps altering its repo rate, which further results in change in fixed deposit rates.

Fixed deposit rates vary across banks, who try to keep their rates competitive enough to attract investors.