Leading banks like ICICI Bank, Kotak Mahindra Bank, and IndusInd Bank have raised their term deposit interest rates ahead of Dhanteras and Diwali in a bid to attract more investors. Most banks have revised their fixed deposit rates after the Reserve Bank of India (RBI) hiked its base lending rate, or repo rate, to 5.90 per cent on September 30. Here’s quick look at the revised rates and tenor.
ICICI Bank
The leading private sector lender has hiked its interest rates on fixed deposit schemes of less than Rs 2 crore, which are effective from October 18, 2022. Overall, the bank has increased its interest rates by up to 25 bps for select schemes, and kept some tenors as is. The interest rate tenor for FD schemes now range from 7 days to 10 years. The lowest and highest rate of interest now are XX per cent and 6.20 per cent.
Revised and existing rates: The bank is offering an interest rate of 3.50 per cent for schemes of 7 to 29 days. The rate is the same for the next 30 to 60 days.
For schemes of 61 days to 90 days, the bank has hiked the interest rate to 3.75 per cent, whereas for 91 days to 184 days deposits, the interest rate is 4.25 per cent.
For the next slab, 185 days to less than 1 year, the rate is 5.00 per cent, which was 4.90 per cent before. For term deposits of 1 year to 2 years, the new interest rate is 5.80 per cent. For schemes maturing in 2 years 1 day to 3 years, the new rate of interest is 6.00 per cent, which was 5.80 per cent before this. For 3 years to 5 years schemes, the revised rate of interest is 6.20 per cent. It was 6.10 per cent till October 17.
For longer tenures, 5 years to 10 years, the interest rate was hiked by 10 bps from 6 per cent to 6.10 per cent.
IndusInd Bank
Private lender IndusInd Bank also raised its interest rates on fixed deposits under Rs 2 crore. The rates are already effective from October 18, 2022. With the current revision, the bank is offering a maximum interest rate of 7.00 per cent for general investors. Senior citizens will get a slightly higher 7.75 per cent.
FD rates: For shorter tenures of 7 days to 30 days, the rate of interest is 3.50 per cent. The interest rate is 4.00 per cent for schemes of 31 days to 60 days. For schemes of 61 days to 90 days, the revised rate is 4.25 per cent, whereas for 91 days to 120 days, the interest rate is 4.50 per cent.
On deposits for 121 days to 180 days, the private lender is offering an interest rate of 4.75 per cent. For the next slab of 181 days to 210 days, the revised rate is 5.00 per cent.
On fixed deposits of 211 days to 269 days, the new rate is 5.25 per cent. For schemes of 270 days or 364 days, IndusInd Bank is now offering an interest rate of 5.50 per cent.
For 12 months to 18 months, investors will get a revised interest rate of 6.25 per cent. For schemes maturing in 18 months to below 2 years, the new interest rate is 6.75 per cent. The bank is offering an interest rate of 7.00 per cent on deposits maturing in 2 Years up to 2 Years 1 Month, whereas the next slab of 2 Years 1 Month to 61 months, the rate of interest has been revised to 6.75 per cent.
The interest rate for deposits of 61 months is 6.75 per cent, whereas 61 months or more, the rate of interest is 6.25 per cent. For long-term schemes, the investors will get a compounded interest every quarter. For short term schemes up to 180 days, simple interest will be paid on the deposits.
In addition, senior citizens would get 0.75 per cent more over and above the card rates for schemes below Rs 2 crore.