Just a few days ago, the Reserve Bank suddenly increased the repo rate by 40 basis points. After this increase, banks started increasing the rates of home loans. Simultaneously, the rate of FD has also started increasing. Home loan becomes costlier due to increase in repo rate whereas FD gives higher returns.
After increasing the repo rate , the home loan became expensive, but those who put money in fixed deposits became silver. Banks started increasing the interest rate of home loan on one hand, and on the other they started increasing the FD rate. This has increased the returns on FDs. In the midst of extreme inflation, people have got some relief. Recently, many banks increased the FD rate, including State Bank, Axis Bank, Federal Bank, HDFC Bank and ICICI Bank. Here we will see the list of 10 banks and know what is their FD rate.
State Bank of India’s FD rate is 2.90 to 5.50 percent on a normal account, while this rate for senior citizens is 3.40 to 6.30 percent. HDFC Bank’s FD is getting an interest of 2.50 to 5.60 percent on normal deposits, while for senior citizens this rate is 3.40 to 6.30 percent. IDBI Bank is giving 2.70 to 5.60 percent interest on normal account and 3.20 to 6.35 percent for senior citizens. Punjab National Bank is giving 3.00 to 5.25 percent interest on normal account and 3.50 to 5.75 percent on senior citizen’s account.
Which bank is getting how much return
Canara Bank is giving 2.90 to 5.75 percent interest on normal FD and 2.90 to 6.25 percent for senior citizens. Axis Bank is giving 2.50 to 5.75 percent to general depositors and 2.50 to 6.50 percent to senior citizens on its FD. Bank of Baroda is giving 2.80 to 5.35 percent interest on FDs to general depositors and 3.30 to 6.35 percent to senior citizens. On IDFC Bank’s FD, 2.85 to 5.20 percent interest is being received on normal account and 3.35 to 5.95 percent for senior citizens. Similarly, Punjab and Sind Bank is giving 3.00 to 5.40 percent interest to general depositors and 3.50 to 5.90 percent to senior citizens on its FDs.
HDFC Bank’s recent hike
The name of HDFC Bank is in the most recent increase. The new rates have come into effect for FDs with tenor of more than nine months. HDFC Bank’s new FD interest rate hike ranges between 10 to 20 basis points, depending on the tenure. In this, senior citizens get 0.50 percent additional return. The bank has said on its website that HDFC Bank’s FD interest rate hike has come into effect from May 18, 2022 and is applicable on deposits below Rs 2 crore. Earlier, ICICI Bank, Federal Bank, State Bank and Axis Bank have also increased FD rates.
Just a few days ago, the Reserve Bank suddenly increased the repo rate by 40 basis points. After this increase, banks started increasing the rates of home loans. Simultaneously, the rate of FD has also started increasing. Home loan becomes costlier due to increase in repo rate whereas FD gives higher returns.
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