{
  "id": 12863384,
  "title": "Extra maturity you can get at 5-25 bps FD rate hike",
  "url": "https://urgent.news/2026/10/08/extra-maturity-you-can-get-at-5-25-bps-fd-rate-hike",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T10:59:43.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/invest/fd-interest-rate-return-maturity-calculator-extra-corpus-you-can-get-at-rs-1-lakh-10-lakh-investment-in-5-year-fixed-deposit/articleshow/134787504.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) recently increased the repo rate from 5.25% to 5.50%, which may lead to higher interest rates on fixed deposits (FDs) in the future. While the exact rate hikes by individual banks are still unknown, even a small increase in FD interest rates can significantly impact the maturity amount, especially for large deposits kept for a long time. To illustrate this, let's examine the potential extra maturity earnings for different deposit amounts and interest rate increases within a 5-year FD.\n\nFor a Rs 1 lakh deposit, a 5-bps rate increase from 6.50% to 6.55% can result in an additional Rs 340 at maturity. For a Rs 10 lakh deposit, the extra earnings would amount to approximately Rs 3,400. This demonstrates how a minor rate increase can make a substantial difference in the final maturity amount for substantial investments.\n\nAs the interest rate increase grows, so does the extra earnings. A 10-bps rate increase, taking the FD rate from 6.50% to 6.60%, can earn an additional Rs 681 on a Rs 1 lakh deposit and Rs 6,808 on a Rs 10 lakh deposit. Similarly, a 15-bps rate increase from 6.50% to 6.65% results in an extra Rs 1,022 for a Rs 1 lakh deposit and Rs 1,020 for a Rs 10 lakh deposit. The impact continues to escalate with every 5-bps rate hike, showcasing the potential for significantly higher maturity amounts as the rates climb.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}