India's two biggest private lenders – HDFC Bank and ICICI Bank – hiked interest rates on fixed deposits last week following the Reserve Bank of India's (RBI) move to hike the repo rate by 50 basis points to 4.9%. State Bank of India, the country's largest public sector lender, too increased its FD rates last week.
Here's a detailed comparison of fixed deposit interest rates offered by these three top banks.
Private lender HDFC Bank raised interest rates on fixed deposits of less than ₹2 crore on June 17. The bank currently offers 2.75% to 5.75% interest to the general public and 3.25% to 6.50% to senior citizens on deposit tenures ranging from 7 days to 10 years.
HDFC Bank increased the interest rate on deposits from 7 to 29 days from 2.50% to 2.75%. The bank also raised the interest rate on fixed deposits maturing in 30 to 90 days by 25 basis points from 3% to 3.25%. For fixed deposits maturing in 91 days to 6 months, HDFC Bank now offers an interest rate of 3.75%, up from 3.50% before.
Fixed deposits maturing in 6 months 1 day to 9 months will now fetch 4.65% interest. Term deposits maturing in 9 months 1 day to less than 1 year will earn 4.65% interest, up from 4.50% earlier. The bank offers an interest rate of 5.35% on fixed deposits maturing in one year to less than two years, up from 5.10% before. Deposits maturing in two years, one day, or three years will now fetch 5.50% interest instead of 5.40% earlier.
Deposits maturing in 3 years 1 day to 5 years will now fetch an interest rate of 5.70%, up from 5.60% earlier. Term deposits maturing in 5 years 1 day to 10 years will earn 5.75% interest.
HDFC Bank offers an additional premium of 0.25% (over and above the existing premium of 0.50%) to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of five years one day to 10 years.
India’s second-largest private lender ICICI Bank also hiked interest rates on fixed deposits of less than ₹5 crore on June 16.
The five-year tax saving fixed deposit which offers tax benefit under Section 80C of the Income Tax Act will now fetch 5.70% interest as against 5.60% earlier.
For term deposits of less than ₹2 crore, the lender offers 2.75% interest on FDs maturing in 7 to 29 days, and 3.25% interest rate on FDs maturing in 30 to 90 days. The interest rate is 3.75% for FDs maturing in 91 days to 184 days, and 4.60% for FDs maturing in 185 days to less than 1 year.
Deposits with maturity period ranging from one year to two years will fetch 5.30% interest as against 5.10% earlier. FDs with a maturity period of two years and one day to three years will get customers 5.50% interest as against 5.40% earlier.
Deposits having maturity period over three years and up to five years will attract 5.70% interest compared with 5.60% earlier. Fixed deposits maturing in five years and one day to 10 years will fetch the same 5.75% interest.
State Bank of India
India’s largest state-run lender SBI too hiked interest rates on fixed deposits less than ₹2 crore on June 14.
For deposits maturing in 211 days to less than 1 year, SBI has hiked the interest rate by 20 basis points from 4.40% to 4.60%. On term deposits of 1 year to less than 2 years, SBI now offers an interest rate of 5.30% up from 5.10% earlier.
Deposits maturing in two to three years will now fetch 5.35% interest, up from 5.20% previously.