After HDFC Bank, SBI Hikes Interest Rate On Fixed Deposit. Check Revised FD Rates

Even as the RBI maintained the status quo in its bi-monthly monetary policy in February, SBI and HDFC Bank are the latest to hike FD rates.

New Delhi: Public and private lenders have gone ahead and raised interest rates of fixed deposits (FD) on Wednesday. Even as the Reserve Bank of India (RBI) maintained status quo in its bi-monthly monetary policy in February, the State Bank of India (SBI) and HDFC Bank are the latest to hike FD rates.

HDFC Bank 

HDFC Bank has increased the interest rates on fixed deposits on some tenures, according to the lender's website. The Bank has increased the interest rates on deposits less than Rs 2 crore by 5-10 basis points and the revised rates will be applicable from February 14.

The rate for fixed deposits of one year tenure has been raised by 10 basis points to 5 per cent from 4.9 per cent, according to publication Mint report. The interest rate on deposits for up to two years is also 5 per cent.

Meanwhile, the rate of interest on fixed deposits with tenure between two-three years is kept at 5.20 per cent.

For three-five years of FD, rates have been raised by 5 basis points to 5.45 per cent. The FD rate on deposits with 5-10 year tenure currently stands at 5.60 per cent.

This is the second time interest rates for FDs have been raised after the hike in January.

State Bank of India

The country’s largest bank has increased interest rates on long-term fixed deposits (FDs) by up to 15 basis points (bps).  The revised interest rates are applicable from February 15, according to the Bank's website.

The interest rate on FD for tenure from three years to less than five years has been increased to 5.45 per cent from 5.30 per cent. For senior citizens, the rate has been increased to 5.95 per cent from 5.80 per cent, according to the information available on SBI’s website.

The interest rate on FD for a tenure of two years to less than three years has been increased by 10 basis points to 5.20 per cent from the earlier 5.10 per cent. For senior citizens, the rate has been increased to 5.70 per cent from the earlier 5.60 per cent. For five years to 10 years tenure, the interest rate has been increased to 5.50 per cent from the earlier 5.40 per cent. For senior citizens, the rate has been increased to 6.30 per cent from 6.20 per cent.

These rates are applicable for FDs worth less than Rs 2 crore. However, the interest rates on FDs for tenure up to two years have been kept unchanged.

Central Bank of India and UCO Bank had also revised interest rates on fixed deposits. The revised interest rates are applicable on fixed deposit investments up to Rs 2 crore. The rate is applicable from February 10.

Last week, the RBI's monetary policy committee kept rates and its stance unchanged to ensure a broad-based recovery. The repo rate currently stands at 4 percent and the reverse repo rate at 3.35 percent.