This month, a number of banks have slashed interest rates offered on their fixed deposits (FDs). For instance, Axis bank has cut down its rates by 10 bps on tenure of two years to less than five years.
Yes Bank has reduced fixed deposit (FD) interest rate on a certain tenure for deposits below ₹2 crore on certain tenures by up to 25 basis points (bps). Additionally, HDFC Bank has reduced fixed deposit (FD) interest rates of two special-tenure fixed deposit schemes, for 35 and 55 months.
Here we list out the latest FD rates across tenors:
Axis Bank: This private lender offers the highest interest of 7.1 percent on FD of two-year tenure, whereas for one year, the interest rate offered is 6.7 percent.
Yes Bank: It offers 7.25 percent on FDs of 1 to 5-year tenure. For longer FDs, it offers 7 percent.
HDFC Bank: The largest private lender offers highest interest of 7.2 percent on its FDs of 4-year tenure. For longer tenure FDs, the bank offers an interest rate of 7 percent.
SBI: The largest state lender offers 7 percent on its 2-year FD and 6.8 percent on one-year FD. The long tenure FDs such as 3-5 years, the bank offers 6.5 percent per annum.
ICICI Bank: This bank offers 7.25 percent on its FD of 1-year tenure. For long tenure FDs, the bank offers 6.75 per cent.
In the recent past, several banks raised their FD rates. Bank of India, for instance, in May this year increased the interest rate of fixed deposits for 1-year tenor to 7 per cent for retail customers.
Since May last year, the Reserve Bank of India (RBI) has raised the benchmark interest rate (repo rate) by 250 basis points in a series of successive monetary policy reviews.
These interest rate hikes not only translated into costlier loans for borrowers but also led to higher interest rates on fixed deposits (FDs).
In fact, several wealth experts have been recommending investors to lock their FDs at the prevailing rates that are higher.