Fixed deposit rates up: Check new fixed deposits interest rates for these banks
Premium- The Reserve Bank of India increased the repo rate by 0.50% after its monetary policy meeting on June 8, taking the total hike to 0.9% in 36 days
Following a long period of low interest rates and concerns over 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 has hiked rates by 0.90% in two moves and is expected to do more to contain inflation.
With fixed deposits acting as one of the crucial investment options, following the rate hikes by the RBI, questions were raised about trailing deposit rate increases and the propensity among banks to hike lending rates immediately but deny benefits to the depositors. While earlier this month, the RBI hiked the repo rate by 0.50% after its monetary policy meeting on June 8, taking the total hike to 0.9% in 36 days.
At a time when concerns are being raised about lenders delaying deposit rate hikes amid the overall rate increases, here are the new FD interest rates for amounts less than ₹2 crore:
- State Bank of India: For general citizens, the rates start from 2.90% to 5.50% while for senior citizens rates are between 3.40% and 6.30%.
- HDFC Bank: For general citizens, the rates start from 2.75% to 5.75% and for senior citizens start from 3.25% to 6.50%.
- Kotak Mahindra Bank: The rates start from 2.50% to 5.90% for general citizens and for senior citizens the rates start from 3% to 6.56%.
- Punjab National Bank: The rates start from 3% to 5.5% for general citizens while it is between 3.50% and 6% for senior citizens.
- Canara Bank: For general citizens the rate interest rates start from 2.90% to 5.75%, for senior citizens it is 2.90% to 6.25%.
Additionally, Yes Bank on Tuesday introduced a product where the interest earned on a term deposit is linked to the RBI's repo rate.
Till now, an external benchmark-linked rate has been popular on the lending side, but the same was not the case for deposits. The RBI has hiked rates by 0.90 per cent in two moves and is expected to do more to contain inflation.
Yes Bank, in its statement, said its new offering will allow customers to enjoy dynamic returns on their fixed deposits (FDs) as the rate of interest will be linked to the prevailing repo rate. The floating rate FDs can be availed for a tenure of 1 year to less than 3 years.
The lender's Managing Director and Chief Executive Officer Prashant Kumar said this is one of a kind product and there has been careful deliberation behind the launch aimed at enhancing its retail product offerings.