The Reserve Bank of India (RBI) had increased the repo rate by 50 basis points. Since then, many banks have increased the rates of fixed deposits and consumer loans. Now four major banks of the country have also increased the interest rates of term deposits and savings accounts.
If you are a customer of State Bank of India, HDFC Bank, Kotak Mahindra or IDBI Bank, then there is good news for you. All these banks have increased the interest rates on term deposits. SBI has increased the interest rates of select term deposits by 20 basis points, while IDBI Bank has increased the interest rates of term deposits by 25 basis points.
It is worth noting that recently, the Reserve Bank of India had increased the repo rate by 50 basis points. Since then, many banks have increased the rates of fixed deposits and consumer loans. SBI has increased the interest rates for term deposits of less than Rs 2 crore by 0.20 per cent with effect from June 15. The bank has also increased the interest rates of select tenor domestic bulk term deposits above Rs 2 crore by 75 basis points. The bank has also increased the MCLR by 0.20 percent.
IDBI Bank hikes retail term deposit interest rates
Apart from State Bank of India, IDBI Bank has also increased interest rates by up to 0.25 per cent on retail term deposits of less than Rs 2 crore. The new interest rates have become effective from June 15. IDBI Bank has increased the interest rate on retail fixed deposits of tenor from 91 days to six months by 0.25 percent to four percent.
Earlier it used to give bank interest at the rate of 3.75 per cent per annum. On FDs maturing from three years to less than five years, the bank will pay interest at the rate of 5.60 percent, whereas earlier the bank was paying interest at the rate of 5.50 percent. The customer will now get 5.75 percent interest on retail term deposits ranging from five years to seven years.
HDFC and Kotak Mahindra are also not behind
like State Bank of India and IDBI, HDFC Bank has also announced higher interest rates on fixed deposits. HDFC Bank will now offer 6.75 per cent interest to its customers on fixed deposits maturing in 33 months and 7.05 per cent on FDs with a tenor of 99 months.
Similarly, Kotak Mahindra Bank has also increased the interest rates on savings accounts with an amount above Rs 50 lakh by 0.50 percent. Now customers of Kotak Mahindra Bank, whose savings account is more than Rs 50 lakh, will get interest at the rate of 4 percent.
