Soon after the Reserve Bank of India (RBI) raised its repo rate by 35 basis points on December 7, three major private lenders raised interest rates on their term deposits. And so did the state lender State Bank of India (SBI).
Now HDFC Bank offers between 6.5 percent to 7 percent on its long-term fixed deposits (FDs). These new interest rates came into effect from December 14, 2022.
The bank will now offer 6.5 percent on deposits of tenor one year to 15 months. Term deposits with longer tenor (i.e., 15 months to 10 years), interest rate will be 7 percent per annum. Senior citizens are entitled to receive an extra 50 basis points.
The short-term deposits will accrue an interest in the range of 3 percent to 6 percent per annum.
The deposits of nine months to one year will earn an interest of 6 percent. For deposits of tenor six months to nine months, the bank will offer an interest of 5.75 percent. for deposits of tenor 46 days to 6 months, the bank will offer 4.5 percent per annum.
At the same time, Axis bank also raised its interest rates on December 15, 2022, offering anywhere between 6.75 percent to 7 percent per annum on its term deposits longer than one year.
For term deposits of tenor nine months to one year, the interest rate is 6 per cent per annum. And for deposits of tenor between six months to nine months, the bank offers an interest of 5.75 percent.
For deposits of tenor between 61 days to 6 months, the rate of interest will be 4.5 percent per annum.
ICICI Bank also raised its FD interest rates but only on bulk deposits amounting to more than ₹2 crore. Now, the second largest private lender offers an interest of 6.75 percent to 7 percent on its long-term deposits. The new rates came into effect from December 15.
State Bank of India
It is worth mentioning here that State Bank of India (SBI) has raised interest rates by 15-100 basis points (bps) on various maturities on both domestic retail deposits, and bulk deposits with effect from December 13.
The state lender is now offering a peak deposit rate of 6.75 per cent for retail deposits on two buckets — one year to less than two years and two years to less than three years.