Private sector lenders HDFC Bank and ICICI Bank have raised the interest rates on their fixed deposits (FDs), enabling higher returns for depositors on maturity.
After the latest revision,
HDFC Bank now offers interest ranging from 2.50 percent to 5.50 percent on deposits maturing between 7 days and 10 years. HDFC Bank offers interest rates from 3 percent to 6.25 percent on FDs maturing in 7 days to 10 years to senior citizens. These rates are applicable from December 1, 2021.
In the case of
ICICI Bank, the revised interest rates are applicable for new deposits and renewal of existing
fixed deposits. The bank now gives interest rates ranging from 2.5 percent to 5.50 percent on deposits maturing in 7 days to 10 years. Senior citizens continue to get a 50 basis points (bps) higher interest rate than others.
Here's a comparison of the interest rates offered by the three major banks — HDFC Bank, ICICI Bank and State Bank of India (SBI) — on fixed deposits (FDs) up to Rs 2 crore:
HDFC Bank Fixed Deposit Rates
HDFC Bank offers the following FD interest rates on deposits below Rs 2 crore:
| Tenors | Rates for public | Rates for senior citizens |
| 7 - 14 days | 2.50% | 3.00% |
| 15 - 29 days | 2.50% | 3.00% |
| 30 - 45 days | 3% | 3.50% |
| 46 - 60 days | 3% | 3.50% |
| 61 - 90 days | 3% | 3.50% |
| 91 days - 6 months | 3.50% | 4% |
| 6 months 1 days - 9 months | 4.40% | 4.90% |
| 9 months 1 day < 1 Year | 4.40% | 4.90% |
| 1 Year | 4.90% | 5.40% |
| 1 year 1 day - 2 years | 5.15% | 5.65% |
| 2 years 1 day - 3 years | 5.65% | 4.75% |
| 3 year 1 day- 5 years | 5.35% | 4.85% |
| 5 years 1 day - 10 years | 5.50%* | 6.25%* |
ICICI Bank Fixed Deposit Rates
ICICI Bank offers the following FD interest rates on deposits below Rs 2 crore:
| Tenors | Rates for public | Rates for senior citizens |
| 7 days to 14 days | 2.50% | 3.00% |
| 15 days to 29 days | 2.50% | 3.00% |
| 30 days to 45 days | 3.00% | 3.50% |
| 46 days to 60 days | 3.00% | 3.50% |
| 61 days to 90 days | 3.00% | 3.50% |
| 91 days to 120 days | 3.50% | 4.00% |
| 121 days to 150 days | 3.50% | 4.00% |
| 151 days to 184 days | 3.50% | 4.00% |
| 185 days to 210 days | 4.40% | 4.90% |
| 211 days to 270 days | 4.40% | 4.90% |
| 271 days to 289 days | 4.40% | 4.90% |
| 290 days to less than 1 year | 4.40% | 4.90% |
| 1 year to 389 days | 4.90% | 5.40% |
| 390 days to < 15 months | 4.90% | 5.40% |
| 15 months to < 18 months | 4.90% | 5.40% |
| 18 months to 2 years | 5.00% | 5.50% |
| 2 years 1 day to 3 years | 5.20% | 5.70% |
| 3 years 1 day to 5 years | 5.40% | 5.90% |
| 5 years 1 day to 10 years | 5.60% | #6.30% |
| 5 Years (80C FD) – Max to `1.50 lac | 5.40% | 5.90% |
SBI Fixed Deposit Rates
State Bank of India (SBI) offers the following FD interest rates on deposits below Rs 2 crore:
| Tenors | Rates for public | Rates for senior citizens |
| 7 days to 45 days | 2.9% | 3.4% |
| 46 days to 179 days | 3.9% | 4.4 |
| 180 days to 210 days | 4.4% | 4.9 |
| 211 days to less than 1 year | 4.4%% | 4.9 |
| 1 year to less than 2 year | 5 | 5.5 |
| 2 years to less than 3 years | 5.1 | 5.6 |
| 3 years to less than 5 years | 5.3 | 5.8 |
| 5 years and up to 10 years | 5.4 | 6.2 |
The key thing to note here is that interest rates offered on FDs are subject to change from time to time. As we know,
a fixed deposit (FD) is a fixed income instrument that provides guaranteed returns over a pre-defined period of lock-in. According to experts, it is one of the best options for people looking for an assured income as they are risk-free.
Deciding the tenure is very important in the case of FDs because if investors withdraw the amount before maturity, they will have to pay a penalty, which lowers the total interest earned on the deposit.
The lower FD rates amid falling interest rates in recent months have remained a cause for concern for investors of all hues. The latest rise in FD rates will provide solace to many depositors as more lenders join the trend. Recently,
HDFC Ltd and Bajaj Finance also hiked interest rates by up to 30 basis points for deposits up to five years.
(Edited by : Ajay Vaishnav)
