Suppose you’re someone who has been looking into making some investments in recent times and wanting to go for a safe option. In that case, you must already have been suggested with the possibility of opening a fixed deposit, right?
Well! Before you do so, you need to know certain things about the interest rates related to FD providers, which is as follows.
Even though FD rates have been on the lower side for a couple of years now, certain banks are offering better rates for various tenors. IndusInd Bank and RBL Bank offer a 6% interest rate on one year FDs.
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RBL bank offers a 6.3% interest rate on its 5 and 5 years FDs. The Axis bank is offering the highest FD rate for a five-year tenure, i.e., 5.75%
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On Thursday, December 2, 2021, the HDFC bank announced a hike in its fixed deposit interest rates for select tenors. It is now offering a 2.50% interest rate on deposits with a maturity of 7-29 days and a 3% interest rate on FDs with a maturity of 30-90 days, i.e., a maturity of approximately three months.
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On the other hand, FDs maturing within 3-6 months will get an interest rate of 3.5%. On one year FDs, the bank is offering 4.9%. On FDs maturing in 1-2 years, the bank has raised the interest rate by ten basis points [bps] and will now earn a 5% interest.
Furthermore, HDFC Bank will continue to provide the senior citizens with a 25 basis point bonus rate of interest.
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Other banks’ FD rates
Compared to this, for deposits below Rs 2 crore, the State Bank of India (SBI) offers interest rates in the range of 2.9-5.4% on FDs with various tenors ranging from 7 days to 10 years. Similarly, the ICICI Bank FD rates range from 2.5-5.5% for tenors between 7 days and ten years.
Will There Be a Start Of a Reversal In The Trend?
Some non-banking finance companies[NBFCs] like Bajaj Finance and HDFC have also announced a hike in FD rates by up to 30 basis points for deposits up to 5 years. These hikes have come just a week before the Reserve Bank of India’s [RBI] review of the bi-monthly monetary policy in the coming week.