Interest rates

Fixed deposit interest rates up: see the new fixed deposit interest rates for these banks

After a long period of low interest rates and concerns over the impact on fixed deposit investors, fixed deposits received good news with two consecutive repo rate hikes by the Reserve Bank of India (RBI) in May and June. The RBI raised rates by 0.90% in two moves and should do more to contain inflation.

With fixed deposits acting as one of the crucial investment options, following the rate hikes by the RBI, questions have been raised about the trailing increases in deposit rates and the propensity of banks to raise interest rates immediately. ready but to deny benefits to depositors. While earlier this month, the RBI raised the repo rate by 0.50% after its monetary policy meeting on June 8, bringing the total hike to 0.9% in 36 days.

At a time when concerns are being raised that lenders are delaying deposit rate hikes amid overall rate hikes, here are the new FD interest rates for amounts below 2 crores:

  • National Bank of India: For ordinary citizens, the rates range from 2.90% to 5.50% while for the elderly, the rates are between 3.40% and 6.30%.
  • HDFC Bank: For ordinary citizens, the rates range from 2.75% to 5.75% and for the elderly, from 3.25% to 6.50%.
  • Kotak Mahindra Bank: Rates start from 2.50% to 5.90% for general citizens and for senior citizens rates start from 3% to 6.56%.
  • National Bank of Punjab: The rates start from 3% to 5.5% for citizens in general while they are between 3.50% and 6% for the elderly.
  • Canara Bank: For general citizens, interest rates range from 2.90% to 5.75%, for senior citizens it is from 2.90% to 6.25%.

Additionally, Yes Bank on Tuesday launched a product in which interest earned on a term deposit is linked to the RBI’s repo rate.

Until now, an external rate linked to a benchmark has been popular on the lending side, but the same has not been the case for deposits. The RBI raised rates by 0.90% in two moves and should do more to contain inflation.

Yes Bank, in its statement, said that its new offering will allow customers to enjoy dynamic returns on their term deposits (FD), as the interest rate will be linked to the prevailing repo rate. Floating rate FDs can be used for a duration of 1 year to less than 3 years.

The lender’s managing director and chief executive, Prashant Kumar, said it was a one-of-a-kind product and there had been careful deliberations behind the launch aimed at improving its product offerings. Retail.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.