In the past 10 months, Reserve Bank of India (RBI) has raised its repo rate by a total of 250 basis points in its six successive monetary policy committee (MPC) meets. The commercial banks, too, have followed suit by not only raising their lending rates, but their fixed deposit interest rates.
In the past one week, at least three banks have raised interest rates on their term deposits. For instance, Bandhan Bank raised its interest rates two days before the banking regulator announced to raise its repo rate (or short-term lending rate to commercial banks) by 25 basis points. Axis Bank and Kotak Mahindra Bank have also raised their interest rates on fixed deposits.
Bandhan Bank
The bank raised its fixed deposit rates with effect from February 6, 2023. It now offers 7.25 percent interest to deposits of one year to 599 days. For 600 days, the interest rate hikes to 8 percent. For 601 days to five years, the interest rate is 7.25 percent. And for deposit ranging between five years to 10 years, interest rate is 5.85 percent.
For shorter durations, however, interest rate ranges between three percent to 4.5 percent. For deposits between 7 days to 30 days, the interest rate is 3 percent. For deposits between 31 days to less than two months, the rate is 3.5 percent. And it further increases to 4.5 percent when tenor is between two months to one year.
Axis Bank
The bank has raised its term deposit interest rates with effect from February 11, 2023. Axis Bank now offers 6.75 percent to fixed deposits (less than ₹2 crore) of tenor ranging between one year to one year 24 days. It further rises to 7.10 percent when tenor ranges between one year 25 days to 13 months.
It further rises to 6.75 percent when the tenor ranges between 13 months to 2 years. For tenor between two years to 30 months, the rate of interest is 7.26 percent.
For longer tenors, the rate of interest is 7 percent. For shorter tenor deposits, however, i.e., for tenors less than one year, the rate of interest ranges between 3.5 percent to 6 percent per annum.
Kotak Mahindra Bank
The bank raises FD rates with effect from Feb 10, 2023. It now offers 6.9 percent for deposits between one year to 389 days. It further rises to 7.10 percent when tenor extends between 390 days to less than two years.
For tenor between two years to less than three years, the rate of interest is 6.75 percent.
For tenor between three years to less than four years, the rate of interest is 6.5 percent. And for tenor between 4 years to five years, the rate of interest is 6.25 percent. For tenor above five years, the rate of interest is 6.2 percent.
For shorter tenor (up to one year), the rate of interest varies between 2.75 percent to 6.25 percent.
