RBI repo rate rise — Here's a list of banks that recently hiked their fixed deposit interest rates

Several commercial banks across the country have increased their lending interest rates and fixed deposit interest rates across tenors, as a result of Reserve Bank of India (RBI) hike in the repo rates - the rate at which central bank lends money to commercial bank.

Since May, the RBI has increased the repo rate by 250 basis points to 6.50 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 and 25 bps in February, the total rise comes to 250 bps.

The private sector lender Axis Bank has hiked its interest rates on fixed deposits of less than Rs 2 crore, with effect from February 11, 2023.

Following the revised rates, the bank is now offering an interest rate of 3.50 percent on fixed deposits that mature in the next 7 days to 45 days.  For the deposits that mature in the next 46 days to 60 days, the bank is now providing an interest rate of 4.00 percent.

Axis Bank is now providing interest rates of 4.50 percent and 4.75 percent on deposits with terms ranging from 61 days to three months and three months to six months, respectively. Deposits that mature in 6 to 9 months will now pay interest at a rate of 5.75 percent, while those that mature in 9 to 12 months will now earn interest at a rate of 6.00 percent.

On fixed deposits maturing in 1 year to 1 year 24 days, the bank is offering an interest rate of 6.75 percent and for those maturing in 1 year 25 days to 13 months, the bank is now offering an interest rate of 7.10 percent.

Deposits with maturities between 13 months and two years will now earn interest at a rate of 6.75 percent, while those with maturities between two years and thirty months will earn interest at a rate of 7.26 percent. Axis Bank is now offering an interest rate of 7.00 percent on deposits with tenors ranging from 30 months to 10 years. On fixed deposits maturing in 6 months to 10 years, senior citizens will get an additional interest rate over and above the regular rates.

At 11:38 am today, the shares of Axis Bank were 0.26 percent low at Rs 867.75 on BSE.

Another private sector lender ICICI Bank announced a hike in interest rates on bulk fixed deposits (FDs) of Rs 2 crore to less than Rs 5 crore, effective February 7, 2023.

On deposits maturing in 271 days to less than 1 year, the bank is now offering an interest rate of 6.65 percent and for those maturing in 1 year to 15 months, ICICI Bank will now promise an interest rate of 7.10 percent. On a deposit tenor of 15 months to 2 years, ICICI Bank is promising a maximum return of 7.15 percent and on a deposit tenor of 2 years 1 day to 3 years customers will now get an interest rate of 7.00 percent on their bulk deposits.

Deposits maturing in 3 years 1 day to 10 years will now fetch an interest rate of 6.75 percent. These updated fixed deposit interest rates will be in effect, for new ICICI Bank fixed deposits as well as renewals of existing or current fixed deposits, bank said.

At 11:38 am today, the shares of ICICI Bank were 0.18 percent low at Rs 863.80 on BSE.

Private lender Kotak Mahindra Bank revised its fixed deposit interest rates across select amount and tenor buckets by up to 25 basis points (bps), effective from February 10, 2023.

As per the revised FD rates, Kotak Mahindra Bank is giving interest rates of 6 percent and 6.25 percent on fixed deposits of less than Rs 2 crore maturing in 180 days to 363 days and those maturing in 364 days, respectively. On a deposit tenor of 365 days to 389 days and 12 months 25 days to < 2 years, the bank is giving an interest rate of 6.90 percent and 7.10 percent, respectively.

Currently, the bank offers 8.5 percent interest per annum for senior citizens and 8 percent for others. Interestingly, this is the private sector lender’s second rate hike on Fixed Deposits in 3 months. Bandhan Bank’s customers can benefit from this offer by booking or investing in FD through retail internet banking or mBandhan mobile app.

At 11:38 am today, the shares of Bandhan Bank were 1.59 percent high at Rs 239.90 on BSE.

Fincare Small Finance Bank on Tuesday said that it has increased its fixed deposit (FD) interest rates. With the revised rates, Fincare FD customers can earn up to 8.11 percent on their savings, and senior citizens can earn up to 8.71 percent with a minimum deposit of Rs 5,000.

As per the bank, the move is aimed at offering customers a boost to their savings portfolio, effective February 13, 2023.

To avail the increased FD rates, customers can visit a Fincare Small Finance Bank branch or log in to internet banking or mobile app. A trained representative is available to guide customers and help them make informed decisions about their saving and investment choices, the bank said.

Punjab National Bank (PNB) offers Fixed Deposits with interest rates ranging from 3.50 percent to 7.25 percent. For deposits of less than Rs.2 crore, the bank offers fixed deposit interest rate of 7.25 percent. For deposits of less than Rs.2 crore, senior citizens receive an additional 50 basis points over the current interest rate. The duration of the FD schemes ranges from 7 days to 10 years.

On deposits maturing in 666 days by 95 basis points, from 6.30 percent to 7.25 percent. The bank will now offer an interest rate of 6.50 percent on deposits maturing between three and ten years, a 40 basis point increase from the previous rate of 6.10 percent.

As per the revised rates, the bank is now offering an interest rate of 4.3 percent on fixed deposits that mature in the next 7 days to 45 days.  For the deposits that mature in the next 46 days to 179 days, the bank is now providing an interest rate of 5.3 percent. For deposits maturing in 180 days to 1 year, the interest rate is 6.3 percent.

For the period between 1 year to 3 years, the bank is offering an interest rate of 7.55 percent. For the period between 3 years to 6 years, the interest rate is 7.3 percent.

At 11:38 am today, the shares of Punjab National Bank were 0.59 percent low at Rs 50.55 on BSE.

On deposits maturing in 271 days to less than 1 year, the bank is now offering an interest rate of 6.65 percent and for those maturing in 1 year to 15 months, ICICI Bank will now promise an interest rate of 7.10 percent. On a deposit tenor of 15 months to 2 years, ICICI Bank is promising a maximum return of 7.15  percent and on a deposit tenor of 2 years 1 day to 3 years customers will now get an interest rate of 7.00 percent on their bulk deposits.

Deposits maturing in 3 years 1 day to 10 years will now fetch an interest rate of 6.75 percent. For new ICICI Bank fixed deposits as well as renewals of existing or current fixed deposits, these updated fixed deposit interest rates will be in effect.

The bank will give a 3.50 percent interest rate on deposits maturing in the next 7 to 30 days, and a 4.00 percent interest rate on deposits maturing in the next 31 to 45 days, according to IndusInd Bank. IndusInd Bank will charge 4.50 percent interest on deposits held for 46 days to 60 days and 4.60 percent interest on deposits held for 61 days to 90 days.

At 11:38 am today, the shares of IndusInd Bank were 0.71 percent low at Rs 1148.70 on BSE.