IDBI Bank on Monday announced that it has revised the interest rates upward on term deposits across various tenors with immediate effect. The lender added that it is now offering the highest rate of 6.55 per cent on select tenors.
The bank has also introduced a limited period special 500 days deposit under the Amrit Mahotsav FD scheme which offers a peak rate of 6.70 per cent. The Amrit Mahotsav offer is available up to September 30.
The interest rate hike comes in line with the repo rate hike by the Reserve Bank of India (RBI) in a bid to tackle inflation and bring it under control. India’s central bank earlier this month had hiked the repo rate will be increased by 50 basis points to 5.40 per cent, in its third consecutive rate hike.
The Monetary Policy Committee also decided to focus on the withdrawal of accommodation to ensure that inflation remains within the target going forward.
IDBI Bank becomes the latest bank to join the bandwagon of lenders tweaking their interest rates on various types of deposits. Top lenders like HDFC, SBI, ICICI et al have hiked their interest rates recently. Also Read: ICICI Bank, HDFC Bank hike Fixed Deposit rates; compare here with your bank’s returns