December Delight: Multiple Banks raise FD rates , offer up to 8% interest
December Delight: Multiple Banks raise FD rates , offer up to 8% interest
In the wake of the Reserve Bank of India’s (RBI) decision to maintain the key repo rate at 6.5 percent for the fifth consecutive time, numerous banks have recently hiked their fixed deposit (FD) interest rates. Leading the charge, Kotak Mahindra Bank raised its FD interest rates by up to 85 basis points on Monday, allowing senior citizens to earn up to 7.80 percent on FDs with tenures ranging from 23 months to two years.
This move by Kotak Mahindra Bank was not an isolated event; several other banks, including ICICI Bank, HDFC Bank, Bank of India, and more, had already revised their FD rates earlier this month in anticipation of the continued repo rate pause.
ICICI Bank
Effective December 13, 2023, ICICI Bank revised FD rates for deposits ranging from Rs 2 crore to Rs 5 crore. The updated rates span from a minimum of 4.75 percent for a tenure of seven to 14 days to 7.25 percent for a period ranging from 390 days to 15 months.
HDFC Bank
Simultaneously, HDFC Bank adjusted interest rates for fixed deposits exceeding Rs 5 crore. The bank’s FD rates range from 4.75 percent for a tenure of seven to 14 days to 7.30 percent for one year to 15 months. Notably, for FDs exceeding Rs 100 crore to Rs 500 crore, the interest now stands at 7.30 percent, down from 7.35 percent.
Kotak Mahindra Bank
Kotak Mahindra Bank, on December 11, increased interest rates on FDs below Rs 2 crore by up to 85 basis points. Regular customers will now receive 50 basis points higher interest across various tenures, while senior citizens can earn up to 7.80 percent for tenures ranging from 23 months to two years. Regular customers investing less than Rs 2 crore will receive 7.25 percent interest for FDs with tenures of 23 months one day to less than two years.
Bank of India
Being the first to make a move in December, Bank of India revised its FD rates for domestic customers with deposits from Rs 2 crore and above to less than Rs 10 crore. With this adjustment, the bank is now offering up to 7.25 percent interest for a tenure of one year.
Federal Bank
Federal Bank also joined the trend, offering a 7.50 percent rate for a 500-day tenure applicable to both resident and non-resident deposits. Senior citizens are offered an even more attractive rate of 8.15 percent.
DCB Bank
DCB Bank increased FD interest rates for deposits below Rs 2 crore, offering the highest FD interest rate of 8 percent on regular deposits and 8.60 percent for senior citizens with a tenure of 25 months to 26 months after the revision effective December 13.
In the current landscape, several small finance banks are offering FD interest rates as high as nine percent, while private and public banks are providing FDs in the range of 7-7.5 percent. Leading the pack is Unity Small Finance Bank, offering an interest rate of 9.5 percent to senior citizens for a fixed deposit for 1001 days as of December 6, 2023.
