MUMBAI: Giving a reason to cheer to depositors, several banks have raised interest rates on fixed deposits (FDs). Private sector ICICI Bank has increased its FD rates from Friday, following a similar move from other banks like State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB) and Yes Bank which have also raised rates on such deposits
ICICI Bank has raised interest rates in the range of 25 to 50 bps on retail deposits of less than Rs 2 crore. The bank is now offering interest rates from 3.5% to 7.10% per annum on fixed deposits maturing between 7 days and 10 years for general customers, as per the bank’s website. For senior citizens, the bank is offering 0.5% more interest on these deposits. Banks have started hiking interest on FDs following the Reserve Bank of India’s (RBI) decision to increase repo rate by 25 bps earlier this month. The Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, had raised the repo rate to 6.5% from 6.25% on February 8 taking the total quantum of rate hikes since May 2022 to 250 bps.
For general customers, ICICI Bank is offering the highest interest rate of 7.10% on deposits maturing between 15 to 18 months and 18 months to 2 years. On deposits between 7 days and 29 days, the bank is now offering 3% interest rate while 3.50% interest on deposits maturing between 30 days and 45 days. FDs maturing between five years and one day and 10 years will earn an interest rate of 6.9%.
Other banks have also raised rates recently. Country’s largest lender SBI raised interest rates on select fixed deposits (FDs) by up to 25 basis points (bps) on February 15. For terms ranging from 7 days to 10 years, highest interest rates offered by the bank is 7%. Senior citizens can earn up to 7.5% on SBI fixed deposits. The public sector bank also launched a special programme with a ‘400-day’ tenure, offering an interest rate of 7.10% for regular people and 7.60% for senior citizens. HDFC Bank has increased FD rates from February 21 and is now offering 3%-7% interest on such deposits.
PNB has raised rates on select FDs by up to 30 bps. The highest rate offered by the bank to regular citizens is 7.25% for a tenure of 666 days. Yes Bank has raised rates on FDs by 25 to 50 bps. The bank is offering rates between 3.25% and 7.50% for regular citizens for tenure ranging from 7 days to 10 years.