MUMBAI: SBI, IDBI Bank, HDFC Bank and Bank of Baroda have raised fixed deposit rates, days after the RBI raised the repo rate at which it lends to banks by 50 bps to 4.9%. This will offer some relief to the common man and especially senior citizens who have been singed by rising food and fuel costs.
The country’s largest bank, SBI, raised the interest rates on retail term deposits below Rs 2 crore across certain tenors by 15-20 basis points (one bps is a percentage point). On deposits for 211 days to less than one year, the rate for public has been raised to 4.6% from 4.4%. For one year to less than two years, it has been raised to 5.3% from 5.10%.
For senior citizens, also, SBI has raised the rate on deposit for 211 days to less than one year to 5.10% from 4.9%, for one year to less than two years to 5.8% from 5.6%. The new rates are effective from June 14. Effective June 15, HDFC Bank is offering the public 5.35% on one year deposit less than Rs 2 crore. Senior citizens for the same tenor are getting 5.85%. For 5 years and 1 day to 10 years the public is getting 5.75% and senior citizens are being given 6.5%.
IDBI Bank has announced an increase in the interest rate of up to 25 bps on term deposits less than Rs 2 crore. With effect from June 15, the revised rates would be applicable across various tenors for domestic term deposits, non resident ordinary (NRO) and non resident external term deposits.
“In the present scenario of volatility in the financial markets as well as uncertainty globally and rising inflation domestically, fixed deposit remains a most preferred avenue of safe investment in Indian market,” said Suresh Khatanhar, Deputy Managing Director, IDBI Bank .
“The Bank offers its highest interest rate of 5.75% and offers additional 75 basis points higher interest rate up to 6.50% to Resident Senior Citizen customers across maturities, under its brand “NAMAN Senior Citizen FD.” Bank of Baroda has hiked fixed deposit interest rates on Domestic Term Deposits including NRO and NRE Term Deposits of below Rs 2 crore by up to 40 basis points.