The day Reserve Bank of India (RBI) raised repo rates by 50 basis points, the second-largest private lender ICICI Bank raised interest rates on its fixed deposits (FDs).
After the interest rate hike on FDs, the rate offered on sums lower than ₹2 crore for tenor between 7 days to 29 days will fetch 3 percent. The deposits ranging between 30 days to 90 days will now give an interest of 3.5 percent.
The deposits for slightly longer duration i.e., a tenor between 91 days to 184 days will now give an interest of 4.25 percent.
Following this rate increase, investors who will keep their deposits fixed for anywhere between 185 days to less than one year will earn an interest of 4.9 percent per cent.
Fixed deposits for a period between one and two years will fetch an interest of 5.7 percent.
The tenor of more than two years and up to three years will fetch an interest of 5.8 percent.
And deposits that are fixed for longer than three years but up to five years will give 6.1 percent to investors.
And deposits opened in the name of senior citizens will get an extra interest of 50 basis points.
It is important to mention here that seven banks had raised fixed deposit (FD) rates in the month of August alone after the banking regulator raised repo rates to 5.4 percent on August 5.
These banks are Canara Bank, ICICI Bank, Indian Bank, Bank of Baroda, DBS Bank, Fincare SFB and IDBI Bank. You can read this for more details on the previous FD rate hikes.
