Close on the heels of raising of fixed deposit interest rates by state lenders State Bank of India (SBI) and Punjab National Bank (PNB), private lender HDFC Bank, too, raised its interest rates in a recent development.
Now, the term deposits with tenor between one year to 15 months (for an amount lower than ₹2 crore) stand to give 6.10 percent return for investors. The deposits of tenure between 15 months to 2 years will offer 6.15 percent interest.
The deposits of tenor between 2 years and 5 years give an interest of 6.25 percent per annum.
The short duration FDs, at the same time, fetch relatively lower return for investors. If you invest a deposit for anywhere between 7 days to 29 days, the rate of interest is 3 percent.
The rate increases to 3.5 percent for tenor between 30-45 days. For 46 to 60 days, the rate of interest is 4 percent per annum. For a tenor between 6 months to nine months, the rate of interest is 5.25 percent and for tenor between nine months to one year — the rate of interest is 5.5 percent. The new interest rates have come into effect from October 26, 2022.
Last week, State Bank of India (SBI) also raised interest rates the second time in a short span of one week. Now, the depositors stand to receive an interest of 6.10 percent on one-year deposits. The rate increases to 6.25 percent for tenor between two to three years. For deposits with even longer tenor, the interest rate is 6.10 percent per annum.
The Punjab National Bank (PNB) recently announced the interest rates on its tax saver fixed deposit (FD) scheme. Under this scheme, depositors are entitled to receive an interest of 6.10 percent per annum for term deposits of five year or longer tenor. The rate of interest is 50 basis points higher for senior citizens and 100 basis points for staff members.
The other deposits continue to offer the earlier rate of interest that were rolled out on September 13, 2022.
On the last day of September, ICICI Bank raised interest rates on its term deposit. It is worth mentioning 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.