SBI, ICICI Bank, HDFC Bank and others hike fixed deposit interest rates – check out the latest FD interest rates
- FD interest rates have been hiked by most of the banks, including SBI, ICICI Bank, HDFC Bank and others.
- This is the second FD interest rate hike, after the RBI increased interest rates twice in the last one month.
- Senior citizens can get an additional 0.5% interest rate benefit across most of the popular tenors.
- Check out the latest FD interest rates in India.
AdvertisementSBI, ICICI Bank, HDFC Bank and other banks have hiked their fixed deposit interest rates across a wide range of tenors following the second interest rate hike by the Reserve Bank of India, giving depositors a reason to save money with them.
While the equity markets are bleeding across the world – Nifty 50 alone is now down by nearly 13% this year, while its US counterpart, the Nasdaq composite is down by over 30%.
Why are interest rates being hiked?
Interest rates are one of the tools used by central banks around the world to manage the liquidity – the supply of money – in the markets. Lower interest rates result in higher liquidity since the cost of borrowing is low. This can lead to inflation over time, which is what has happened now.
On the other hand, higher interest rates suck out the liquidity from the markets, bringing down the demand and thereby inflation.
With the inflation in India reaching record highs, RBI announced two rate hikes and more are anticipated in the coming months.
This has resulted in an increase in interest rates on home loans and other borrowings, but on the other hand, banks have also passed on the rate hike benefits to depositors.
Here are the latest FD interest rates of some of the popular tenors across some of the biggest banks in India:
|Term||SBI||ICICI Bank||HDFC Bank||Kotak Mahindra Bank||Axis Bank||Bandhan Bank||IDFC First Bank|
|6 months - 1 year||4.60%||4.65%||5.15%||4.75%||4.40%||4.50%||5.75%|
Senior citizens can get an additional interest of anywhere between 0.5-1% across these FD schemes. This will also come as a relief to pensioners, especially at a time when the government has approved a cut on employees’ provident fund (EPF) interest rates to 8.1%.
For deposits over ₹2 crore, the government-owned State Bank of India has increased interest rates from 4.25% to 4.75% for a term of 2-3 years. For deposits with a longer term, the interest rate has been hiked to 5%.
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