Lenders in the private and public sectors have been fast to raise interest rates on a variety of loan terms, and fixed deposits after the Reserve Bank of India (RBI) hiked repo rates twice in the last one month.While increasing loan EMIs would put a dent in the borrowers’ pockets, those who have invested in bank fixed deposits will see their interest rates rise.
Getty Images
2/5
SBI hikes FD interest rates
According to SBI’s website, the bank has raised the interest rate on FDs with terms ranging from 211 days to less than a year by 20 basis points to 4.60 percent. For 1 year to less than 2 years, the interest rate offered has been hiked to 5.30 percent from 5.10 percent. And the interest rate has been raised by 15 basis points on 2 years to less than 3 years tenor FDs to 5.35 percent from 5.20 percent.For all tenors, the rate for all Senior Citizens and SBI Pensioners aged 60 and over will be 0.50 percent more than the rate for resident Indian senior citizens.
Getty Images
3/5
HDFC Bank FD interest rates
HDFC Bank, a private sector lender, has increased FD rates on different fixed deposit tenors of less than Rs.2 crore. FD rates have been raised by up to 25 basis points, according to the HDFC Bank website. The new interest rates will take effect on June 15, 2022.According to the HDFC Bank website, from 6 months to less than 9 months FD will now earn 4.65 percent, up from 4.40 percent. For tenor 9 months to less than one year will earn 4.65 percent, up from 4.50 percent, and 1 year to 2 years FDs will earn 5.35 percent, up from 5.10 percent.
Getty Images
4/5
How to create an FD ladder to maximise returns?
Making an FD ladder is a best alternative since it allows you to split a large deposit into multiple parts and book each part after a period of time to get the average return and periodic liquidity when interest rates are volatile. It is, however, critical to select the appropriate deposit tenure and frequency. In a rising rate environment, maintaining the tenure and gap between deposits short is critical to ensuring that the deposit reaps the benefits of rising rates at maturity. To complete a stable ladder, progressively increase these.
Getty Images
5/5
ICICI Bank FD interest rate
ICICI bank hiked fixed deposit interest rate on the amount below Rs 2 crore effective from May 21, 2022. ICICI Bank offers an interest rate between 2.50 percent to 5.75 percent for tenor 7 days to 10 years.Term deposits maturing between 185 and 289 days now pay 4.40 percent, while term deposits maturing between 271 and less than a year pay 4.70 percent. Deposits with a term of one year to 2 years will earn 5.10 percent interest. ICICI Bank will now offer a 5.40 percent interest rate on two-year and one-day to 3 years fixed deposits, while the bank will now offer a 5.60 percent interest rate on 3years 1 day to 5 years FD.
