Several lenders have increased interest rates on their fixed deposits (FDs) after Reserve Bank of India (RBI) raised repo rates by 50 basis points on Friday. Kotak Mahindra Bank's new FD rates are effective from today i.e. October 3, 2022, according to the bank's official website. On the other hand, Axis Bank's new FD rates are effective from October 1, while ICICI Bank raised their rates on September 30.
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After the revision, the Kotak Mahindra Bank's FD tenure ranges between 7 days to 10 years and earn interest rates in the range of 2.5 percent-6.2 percent for regular investors, and for senior citizens it is in the range of 3 percent-6.7 percent.
ICICI Bank is now offering interest rates in the range of 3 percent to 6.10 percent for general public. Axis Bank is now offering interest rates in the range of 2.75 percent to 6.15 percent for general public.
Here are the latest FD rates offered by Kotak Mahindra Bank:
| Maturity Periods | Rates for general public | Rates for senior citizens |
| 7 - 14 Days | 2.50% | 3.00% |
| 15 - 30 Days | 2.65% | 3.15% |
| 31 - 45 Days | 3.25% | 3.75% |
| 46 - 90 Days | 3.25% | 3.75% |
| 91 - 120 Days | 3.75% | 4.25% |
| 121 - 179 days | 3.75% | 4.25% |
| 180 Days | 5.00% | 5.50% |
| 181 Days to 269 Days | 5.00% | 5.50% |
| 270 Days | 5.00% | 5.50% |
| 271 Days to 363 Days | 5.25% | 5.75% |
| 364 Days | 5.50% | 6.00% |
| 365 Days to 389 Days | 6.00% | 6.50% |
| 390 Days (12 months 25 days) | 6.10% | 6.60% |
| 391 Days - Less than 23 Months | 6.10% | 6.60% |
| 23 Months | 6.20% | 6.70% |
| 23 months 1 Day- less than 2 years | 6.20% | 6.70% |
| 2 years- less than 3 years | 6.20% | 6.70% |
| 3 years and above but less than 4 years | 6.10% | 6.60% |
| 4 years and above but less than 5 years | 6.10% | 6.60% |
| 5 years and above upto and inclusive of 10 years | 6.10% | 6.60% |
(Source: Kotak Mahindra Bank)
Here are the latest FD rates offered by ICICI Bank:
| Maturity days | Interest rates for general public | Interest rates for senior citizens |
| 7 days to 14 days | 3.00% | 3.50% |
| 15 days to 29 days | 3.00% | 3.50% |
| 30 days to 45 days | 3.50% | 4.00% |
| 46 days to 60 days | 3.50% | 4.00% |
| 61 days to 90 days | 3.50% | 4.00% |
| 91 days to 120 days | 4.25% | 4.75% |
| 121 days to 150 days | 4.25% | 4.75% |
| 151 days to 184 days | 4.25% | 4.75% |
| 185 days to 210 days | 4.90% | 5.40% |
| 211 days to 270 days | 4.90% | 5.40% |
| 271 days to 289 days | 4.90% | 5.40% |
| 290 days to less than 1 year | 4.90% | 5.40% |
| 1 year to 389 days | 5.70% | 6.20% |
| 390 days to < 15 months | 5.70% | 6.20% |
| 15 months to < 18 months | 5.70% | 6.20% |
| 18 months to 2 years | 5.70% | 6.20% |
| 2 years 1 day to 3 years | 5.80% | 6.30% |
| 3 years 1 day to 5 years | 6.10% | 6.60% |
| 5 years 1 day to 10 years | 6.00% | 6.60% |
| 5 Years (80C FD) – Max to `1.50 lac | 6.10% | 6.60% |
(Source: ICICI Bank)
What happens to FDs when RBI hikes repo rate?
A relatively risk-free instrument, fixed deposit (FD) generally become attractive in higher interest rate regimes. Deposit rates are linked to the rate of inflation. Banks generally give positive returns to depositors.
The Reserve Bank of India has recently increased the repo rate by 50 basis points, taking it to 5.9 percent.
Earlier, the central bank hiked the repo rate by 140 bps in the past three policies. The first hike was to the tune of 40 bps in May and then of 50 basis points in June. It again raised repo rate by 50 bps in August. Considering the recent hike of 50 bps, the total rise comes to 190 bps.
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