After a string of lending rate hikes, a few banks have now raised interest rates on their term deposits. These banks are ICICI Bank, Punjab National Bank and Union Bank of India.
ICICI Bank has raised its interest rates across tenors with effect from October 18, 2022.
Now, the deposits (amounting to less than ₹2 crore) with a tenor of one year with ICICI Bank will earn an interest of 5.8 percent. The deposits with a tenor of two years will also accrue the same interest of 5.8 percent.
As the tenor rises to three years, the rate of interest increases to 6 percent. For the interest of four and five years, the rate of interest has been raised 6.2 percent.
The short tenor deposits, i.e., between 7 days to less than one year offer lower interest rate i.e., between 3 percent to 5 percent. The interest rates on deposits amounting to over ₹2 crore also rose marginally with effect from October 20, 2022.
FD rates offered by PNB
Similarly, Punjab National Bank also raised its interest rates across tenures. The new rates came into effect with effect from October 19.
Now, the depositors with tenor of one year will earn an interest of 5.7 percent, instead of 5.5 percent earlier.
The deposits with two-year tenor will also earn the same interest i.e., 5.7 percent. The rate of interest increases to 5.8 percent for three, four and five-year tenor deposits. It further increases t o 5.85 percent for tenor longer than five years.
Interest rates offered by Union Bank
The Union Bank of India also raised its interest rates with effect from October 17 this year.
Now, the one-year tenor fixed deposits will earn an interest of 6.3 percent. The two-year deposits will accrue an interest of 6.6 percent. Any deposit with a tenor longer than this will offer an interest of 6.7 percent.
It is vital to mention that commercial banks have raised interest rates on term deposits several times ever since Reserve Bank of India started to raise repo rates in the month of May this year.