All major lenders in the country have tweaked their fixed-term deposit rates after the Reserve Bank of India hiked the repo rate by 50 bps to 5.40 per cent 
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All major lenders in the country have tweaked their fixed-term deposit rates after the Reserve Bank of India hiked the repo rate by 50 bps to 5.40 per cent
Many Indian investors still prefer investing their hard-earned money in bank fixed deposits (FDs). The investment tool is a popular pick as it guarantees fixed income despite the volatile market. All major lenders in the country have tweaked their fixed-term deposit rates after the Reserve Bank of India hiked the repo rate by 50 bps to 5.40 per cent. ICICI Bank and HDFC Bank are the latest ones to follow suit.
While ICICI Bank will offer interest rates between 2.75 per cent and 6.10 per cent for tenors from 7 days to 10 years for regular citizens, the rate for senior citizens is slightly higher and ranges from 3.25 per cent to 6.60 per cent.
HDFC Bank is offering hiked interest rates of 2.75 per cent to 5.7 per cent for the general public. Senior citizens will continue to get an additional benefit of 0.50 per cent over the general rate in all tenors ranging from 7 days to 5 years.
ICICI Bank rates
The private sector major has revised the interest rates for the second time this month after the RBI’s repo rate hike. Earlier, it had increased the rates for deposits between Rs 2 crore and Rs 5 crore. On August 19, it revised rates for deposits below Rs 2 crore. According to the new rates displayed on the bank website, term deposits with a maturity of one year to two years will now fetch 5.50 per cent interest, instead of 5.35 per cent. Those investing their money for two years-one day to 3 years will get 5.60 per cent interest instead of 5.50 per cent.
In other tenors, the rate has been increased for three years one-day to five-year FD scheme to 6.10 per cent from 5.7 per cent. The revised interest rate for five years, one-day to ten-year scheme is 5.90 per cent. It was 5.75 per cent earlier. All the rates are effective from August 19, 2022.
Here is a detailed view of the revised rates.
Rates for less than a year
| Tenor | General (Below Rs 2 crore) | Senior citizen (Below Rs 2 crore) |
| 7 days to 14 days | 2.75% | 3.25% |
| 15 days to 29 days | 2.75% | 3.25% |
| 30 days to 45 days | 3.25% | 3.75% |
| 46 days to 60 days | 3.25% | 3.75% |
| 61 days to 90 days | 3.25% | 3.75% |
| 91 days to 120 days | 3.75% | 4.25% |
| 121 days to 150 days | 3.75% | 4.25% |
| 151 days to 184 days | 3.75% | 4.25% |
| 185 days to 210 days | 4.65% | 5.15% |
| 211 days to 270 days | 4.65% | 5.15% |
| 271 days to 289 days | 4.65% | 5.15% |
| 290 days to less than 1 year | 4.65% | 5.15% |
Rates for 1 year to 10 years
| Tenor | General | Senior citizens |
| 1 year to 389 days | 5.50% | 6.00% |
| 390 days to | 5.50% | 6.00% |
| 15 months to | 5.50% | 6.00% |
| 18 months to 2 years | 5.50% | 6.00% |
| 2 years 1 day to 3 years | 5.60% | 6.10% |
| 3 years 1 day to 5 years | 6.10% | 6.60% |
| 5 years 1 day to 10 years | 5.90% | 6.60% |
| 5 Years (80C FD) – Max to Rs 1.50 lakh | 6.10% | 6.60% |
HDFC Bank rates
The private sector lender has increased its interest rates in some selected tenors. The minimum tenure for earning FD interest is 7 days, and the maximum is 10 years. It has hiked the interest rates for the tenor of 1 year to 5.50 per cent from 5.35 per cent, which is an increase of 15 basis points. Similarly, for the scheme of one year-one day to two years, the revised rate is 5.50 per cent.
Again, the new rates for the FD scheme for 3 years-1 day to 5 years are 6.10 per cent. It was 5.70 per cent before. All rates are applicable from August 18, 2022.
Take a closer look at the rates here:
Rates for less than a year
| Tenor | General | Senior citizens |
| 7 - 14 days | 2.75% | 3.25% |
| 15 - 29 days | 2.75% | 3.25% |
| 30 - 45 days | 3.25% | 3.75% |
| 46 - 60 days | 3.25% | 3.75% |
| 61 - 89 days | 3.25% | 3.75% |
| 90 days - 6 months | 3.75% | 4.25% |
| 6 months 1 days - 9 mnths | 4.65% | 5.15% |
| 9 months 1 day | 4.65% | 5.15% |
| 1 year | 5.50% | 6.00% |
Rates for 1 year to 10 years
| Tenor | General | Senior citizens |
| 1 year 1 day - 2 years | 5.50% | 6.00% |
| 2 years 1 day - 3 years | 5.50% | 6.00% |
| 3 years 1 day- 5 years | 6.10% | 6.60% |
| 5 years 1 day - 10 years | 5.75% | 6.50% |
FDs vs other investment tools
As per markets, one should have a mix of all investment tools so that it can give you a regular income even if the market is down. The FD rates are always lower than the return in the equity markets, but it is a risk-free asset at all times.
Besides, in comparison to other investment tools, bank fixed deposits can be easily dissolved if you urgently need your money back for any emergency. Even if you go for premature closure, you will earn some interest for the years or days you have invested your money.
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