Several lenders have recently increased their fixed deposit (FD) interest rates as a result of Reserve Bank of India's (RBI's) steady hike in the repo rate - the rate at which central bank lends money to commercial bank. Since May, the RBI has increased the repo rate by 225 basis points to 6.25 percent. The first hike was to the tune of 40 bps in May and then 50 basis points in June. It again raised the repo rate by 50 bps in August and then again by 50 bps in September. Considering another hike of 35 bps in December, the total rise comes to 225 bps.
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Here's a list of banks that recently hiked their fixed deposit rates:
Bank of India
Bank of India has revised interest rates upwards for special term deposit bucket of 444 days. Following the revision, bank offers rate of interest rate of 7.05 percent in special term deposit bucket of 444 days for general customers. It provides an interest rate of 7.55 percent for senior citizens for deposit period of 444 days and 7.25 percent for tenor of 2 years to below 5
years. The rates of interest for other term deposits maturing in 7 days to 10 years is in the range of 3 percent to 6.75 percent for normal customers. The revised interest rates are applicable for domestic, NRO and NRE deposits.
UCO Bank
UCO Bank has raised its interest rates on fixed deposits on a variety of tenors starting at 1 year and going up to 5 years and above by up to 50 bps. Following this, the bank will offer 6.75 percent rate on deposits maturing in 1 year, and for those maturing from above 1 year to up to 2 years, UCO Bank has hiked the interest rate by 20 bps from 6.30 percent to 6.50 percent.
Bandhan Bank
Bandhan Bank now offers interest rates ranging from 3.75 percent to 6.60 percent for senior citizens and from 3.00 percent to 5.85 percent for non-senior citizens for deposits maturing in 7 days to 10 years.
PNB
State-run Punjab National Bank (PNB) has hiked interest rates on savings deposits by 0.25 percent. Also, rates of fixed deposits below Rs 2 crore have been increased by up to 0.5 percent. On single domestic term deposits for one year, the bank is offering a rate of 7.55 percent.
For one year to 665 days the rate offered is 7.55 percent. Also, for deposits between 667 days to 2 years and 2 years to 3 years, PNB is offering 7.55 percent.
Kotak Mahindra Bank
The bank increased interest rates on a variety of tenors by up to 50 bps. The bank is now giving a maximum interest rate of 7 percent for the general public and 7.50 percent for senior citizens on deposits with a term of 390 days to less than two years. The bank is giving an interest rate of 2.75 percent on deposits maturing in the next 7 to 14 days and an interest rate of 3.00 percent on deposits maturing in the next 15 to 30 days.
Indian Overseas Bank
Indian Overseas Bank (IOB) has increased FD rates for tenors of 7 to 90 days by 75 basis points. For deposits with a 444-day maturity period, the bank now offers a maximum interest rate of 6.55 percent to the general public.
Punjab & Sind Bank
The Punjab & Sind Bank has also announced the interest rate increase for fixed deposits. The bank currently offers interest rates on deposits ranging from 2.80 percent to 6.25 percent for maturities of 7 days to 10 years.
First Published: Jan 11, 2023 6:06 PM IST
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