HDFC Bank hikes fixed deposit rates for amount under Rs 1 crore
MUMBAI: HDFC Bank has hiked its fixed deposit rates in select tenures for deposits under Rs 1 crore. The new rates are effective from Tuesday and will yield depositors up to a 100 basis points higher rate, updates on the bank’s website showed.
Deposit rates in the two years to 1 day up to five years which were so far yielding 6% interest will now give depositors 7% interest, a jump of 100 basis points, the bank said. One basis point is 0.01 percentage point.
Deposit rate in the one year bucket has also been hiked to 6.85% from 6.75%. However, rates in the 1 year 1 day to 1 year three day bucket has been cut to 6.50% from 6.75%, a bank spokesperson confirmed.
This hike by HDFC Bank reflects tighter liquidity conditions and the upward trajectory in the benchmark government bond yield in the last few days. The 10-year benchmark bond has has jumped 60 basis points to end at 7.73% on Wednesday from its low of 7.13% after the monetary policy review on April 5 after minutes from the monetary policy committee revealed that members were more concerned about inflation than what the governor conveyed in the policy.
Deposit rates in the two years to 1 day up to five years which were so far yielding 6% interest will now give depositors 7% interest, a jump of 100 basis points, the bank said. One basis point is 0.01 percentage point.
Deposit rate in the one year bucket has also been hiked to 6.85% from 6.75%. However, rates in the 1 year 1 day to 1 year three day bucket has been cut to 6.50% from 6.75%, a bank spokesperson confirmed.
This hike by HDFC Bank reflects tighter liquidity conditions and the upward trajectory in the benchmark government bond yield in the last few days. The 10-year benchmark bond has has jumped 60 basis points to end at 7.73% on Wednesday from its low of 7.13% after the monetary policy review on April 5 after minutes from the monetary policy committee revealed that members were more concerned about inflation than what the governor conveyed in the policy.