Private sector lender ICICI Bank has raised interest rates on term deposits by less than Rs 2 crore across all maturities. According to its website, the new rates have already been in effect since September 30, 2022. Earlier on Friday, the Reserve Bank of India (RBI) raised its key repo rate by 50 basis points to 5, 9%. This is the fourth time since May that the central bank has raised the repo rate. Most lenders in the country are expected to revise their term deposit rates after the RBI raises its repo rate.
ICICI Bank is the first bank to change interest rates. The lender will offer a revised rate between 3% and 6.10% for terms from 7 days to 10 years.
Rates raised by 25 bps
The bank increased the interest rate on term deposits maturing in 7 days to 29 days by 25 basis points, from 2.75% to 3.00%, and also increased the interest rate on deposits maturing in 30 days to 90 days by 25 basis points, from 3.25% to 3.50%.
Fixed deposits with maturities between 91 and 184 days will now offer an interest rate of 4.25%, which was 4%, an increase of 25 basis points, and term deposits with maturity is between 185 and less than one year will now offer an interest rate of 4.90%. It was 4.65% previously.
Rates raised by 20 basis points
The private lender raised interest rates by 20 basis points for plans with maturities between 1 and 2 years. The current is 5.70%. For deposits maturing in 2 years 1 day to 3 years, the rate is now 5.80%, up 20 basis points from 5.60%.
Rates raised by 0 to 10 basis points
For deposits maturing in 5 years, 1 day to 10 years, interest rates will be 6.00%, down from 5.90%, an increase of 10 basis points.
For deposits with maturities of 3 years, 1 day to 5 years, the rate remained unchanged at 6.10%. The bank will continue to offer an interest rate of 6.10% for 5 years (80C FD).