Several Banks Hike Fixed Deposit Rates Ahead of RBI Monetary Policy Review
Several Banks Hike Fixed Deposit Rates Ahead of RBI Monetary Policy Review
Ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting scheduled for February 7, several banks have revised their fixed deposit (FD) interest rates.
While the RBI is expected to deliberate on a potential repo rate cut, banks such as Punjab National Bank (PNB), Union Bank of India, Axis Bank, Shivalik Small Finance Bank, Karnataka Bank, and Federal Bank have already adjusted their FD rates in January.
Punjab National Bank (PNB): PNB has introduced new FD tenures with interest rates of 7% for 303 days and 6.7% for 506 days, effective from January 1. The bank offers interest rates ranging from 3.5% to 7.25% for tenures spanning 7 days to 10 years, with the highest rate of 7.25% available for a 400-day tenure.
Shivalik Small Finance Bank: As of January 22, Shivalik SFB offers FD interest rates from 3.5% to 8.8% for general citizens and 4% to 9.3% for senior citizens.
Karnataka Bank: Effective January 2, Karnataka Bank offers rates between 3.5% and 7.5% for tenures from 7 days to 10 years, with the highest rate of 7.5% applicable for 375-day deposits.
Union Bank of India: Updated as of January 1, Union Bank offers interest rates from 3.5% to 7.3% for deposits under Rs 3 crore, with the highest rate of 7.3% for a 456-day tenure.
Axis Bank: From January 27, Axis Bank provides FD rates ranging from 3% to 7.25% for general citizens with tenures between 7 days and 10 years.
Federal Bank: Effective January 10, Federal Bank offers interest rates from 3% to 7.5% for general citizens, with the peak rate of 7.5% available for a 444-day term.\n\nThese revisions reflect banks’ strategies to attract deposits amidst expectations surrounding the upcoming RBI policy review.
