Ever since Reserve Bank of India (RBI) started to raise repo rates in May 2022 onwards, a number of commercial banks have raised their lending rates as well as fixed deposit (FD) interest rates. The successive rate hikes have pushed the interest rates to as much as 6-7 percent on fixed deposits, particularly the long-tenor deposits.
At the same time, some non-banking financial corporations (NBFCs) now offer as high as 8-8.25 percent on their term deposits.
The state lender Canara Bank, recently, raised its interest rate on term deposit to 7 percent for 666-day tenor for general public. The senior citizens, at the same time, are entitled to receive an extra 50 basis points, thus pushing the rate upward to 7.5 percent per annum.
Here we share details on the interest rates offered by some of the prominent commercial banks here:
Canara Bank: It offers 7 percent interest rate for a fixed deposit with a tenor of 666 days and 5 years and above up to 10 years. Senior citizens are entitled to receive an extra 50 basis points extra. The latest rates have been effective from October 7, 2022.
Kotak Mahindra Bank: For deposits longer than 365 days, the bank offers more than 6 percent. If the deposit is between 365 days to 389 days, the rate of interest is 6 percent. Between 390 days to less than 23 months, the rate of interest is 6.1 percent. Deposits of tenor between 23 months to less than 3 years, the rate of interest is 6.2 percent.
And any deposit longer than three years would fetch an interest of 6.10 percent. These rates came into effect from October 3, 2022.
Yes Bank: Yes Bank offers 6.25 percent for deposits which have a tenor longer than one year. For FDs between one year and 18 months, the rate of interest is 6.25 percent. For term deposits between 18 months to up to 10 years, the rate of interest offered by the bank will be 6.75 percent per annum. These rates came into effect from August 10, 2022.
HDFC Bank: HDFC Bank offers maximum interest of 6.10 percent on term deposits of tenor between 3 years one day to five years. The one and two-year deposits fetch the interest at the rate of 5.7 percent per annum. The deposits of the tenor between two years and three years will fetch an interest of 5.8 percent. These rates came into effect from October 11.
Indian Bank: The bank is currently offering a special term deposit plan for 610 days wherein the bank is offering 6.10 percent for public and 6.25 percent for senior citizens and 6.5 percent for super senior citizens.
Besides this, the lender offers a maximum interest of 5.75 percent on term deposits of tenor between 3 to 5 years. For one-year deposits, the commercial bank offers an interest rate of 5.45 percent per annum. For FDs of two-year tenor, the bank offers 5.55 percent per annum. The rates have been effective from October 4, 2022.