Ahead of the Reserve Bank’s policy review, several banks have made alterations to their fixed deposit (FD) rates. These changes have been initiated by some major players, including HDFC Bank, Bank of India, and IndusInd Bank. This policy review comes as experts speculate that the rates may remain stable this time around. Banks seem to have made their decisions based on these forward-looking indicators. Let’s delve into the new rates introduced by these banks:
HDFC Bank: HDFC Bank has decided to revise the rates of two of its special tenure deposits – 35 months and 55 months. As per the bank, starting October 1st, the interest rates are:
- For a duration less than a year: 6%
- Between 1 year and up to 15 months: 6.6%
- More than 15 months and up to 18 months: 7.1%
- Excluding the 35 and 55 months duration, for periods between 18 months to 10 years: 7% Specifically, for the 35-month duration, the bank offers 7.15% and for the 55-month term, it’s 7.2%. Senior citizens will receive an additional 0.5% interest.
Bank of India: For fixed deposits of less than 2 crores, Bank of India has amended its rates. Currently, the bank offers rates ranging from 3% to 7.25% for tenures between 7 days and 10 years. The specific rates are:
- Less than 45 days: 3%
- Between 46 to 179 days: 4.5%
- From 180 to 269 days: 5.5%
- Less than a year (up to 270 days): 5.75%
- From 1 year to 399 days: 6.5%
- For 400-day deposits: 7.25% This 400-day deposit rate is the maximum being offered by the bank.
IndusInd Bank: Starting from October, IndusInd Bank is offering a peak interest rate of 7.85%, applicable for durations between 1 year 6 months to 1 year 7 months. Senior citizens, on the other hand, are being provided a maximum interest of 8.25% for durations ranging from 1 to 2 years.
Banks continuously adjust their FD rates based on several economic factors. Potential investors should stay updated on these rates to make informed decisions.