The rising interest rate cycle was set in motion after RBI raised repo rates by 40 basis points on May 4. This was followed by home loans getting costlier and fixed deposit rates also started to rise at the same time.
Most recently, Kotak Mahindra Bank raised fixed deposit (FD) interest rates across different tenors. Kotak Mahindra Bank’s FD rate hike is applicable for all deposits under ₹2 crore and will be effective from May 6, 2022.
On FDs maturing in 7 days to 10 years, the bank will now offer interest rates ranging from 2.5 percent to 5.75 percent.
Recently, South Indian Bank revised interest rates on fixed deposits (FDs) w.e.f. April 22. Bajaj Finance also raised its term deposit rates, with effect from April 25, to 5.75 percent for FDs with a tenure of 12-23 months.
Some time ago, SBI also raised its rates on fixed deposits. The SBI website says the bank has raised the interest rate on FDs worth over ₹2 crore with terms ranging from 211 days to less than 356 days by 20 basis points with effect from March 10.
SBI has raised the interest rate on FDs worth over ₹2 crore with terms ranging from 211 days to less than 356 days by 20 basis points.
Also, HDFC Bank last month raised interest rates on fixed deposits for selected tenors, with effect from April 6, 2022.
In February, the bank increased the 1-year FD interest rate by 10 basis points to 5% from 4.9 percent and the 3-year to 5-year FD interest rate by 5 basis points to 5.45 percent from 5.40 percent.
Prior to that in January, HDFC Bank raised the FD interest rates by five to ten basis points.
|Bank||w.e.f.||1 year interest rate (%)||2-year interest rate (%)||3-year interest rate(%)|
|Kotak Mahindra bank||May 6||5.40||5.60||5.75|
|HDFC Bank||Apr 20||5.10||5.10||5.20|
|ICICI Bank||Jan 20||5.00||5.00||5.20|
As we can see, the FD rates have been rising for past few months. ICICI Bank raised its FD rates in January, SBI raised the rates in February followed by HDFC Bank in April and Kotak Mahindra Bank last week.