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Fixed deposit rates: 5 banks that have revised interest rates in the new year

Fixed deposit rates: 5 banks that have revised interest rates in the new year

FD rates: Talking about investment trends in 2023, many experts have said that fixed deposits may see more investors this year as RBI expected to revise its repo rate again in the February 2023 meeting.

ince May this year, most banks have tweaked their FD rates aggressively in line with RBI's policy outcomes ince May this year, most banks have tweaked their FD rates aggressively in line with RBI's policy outcomes

Banks have been offering attractive fixed deposit (FDs) schemes ever since the Reserve Bank of India (RBI) started revising its repo rate since May 2022 to tame inflation rates after the pandemic period. Ever since RBI revised its repo rate (four times in 2022), most banks, public, private, and small finance banks, have followed the trend and tweaked their interest rates. Since May, the RBI has increased the repo rate by 225 basis points to 6.25 per cent.

Talking about investment trends in 2023, many experts have said that fixed deposits may see more investors this year as RBI expected to revise its repo rate again in the February 2023 meeting. The experts have also mentioned that due to the tepid performance of equity funds in recent months, many investors are looking toward FD schemes rather than equity funds.  

Here’s a look at 5 banks that have recently revised their interest rates in 2023, and offering attractive rates.

1. Axis Bank 

Leading private sector bank Axis Bank has recently revised its interest rates on fixed deposits of less than Rs 2 crore. The revised rates are effective from January 10, 2023.  

After the revision, the bank is now offering interest rates from 3.5 per cent to 7.00 per cent for general investors and 3.5 per cent to 7.75 per cent for senior citizens, investors above 60 years, for schemes maturing between 7 days and 10 years.  

It is offering a special fixed deposit rate of 7.26 per cent for a deposit scheme maturing in 2 years to 30 months. For the same scheme, senior citizen investors can earn an interest rate of 8.01 per cent. 

2. Bank of India 

Public sector lender Bank of India has recently hiked interest rates for its special term deposit scheme of 444 days. The interest rates are available from January 10 2023 for deposits below Rs 2 crore. 

After the tweak, the revised interest rate for a term deposit of 444 days for general investors is 7.05 per cent. For senior citizens, the new interest rate will be 7.55 per cent. The bank is offering 7.25 per cent interest rate for a fixed deposit scheme of 2 years-5 years only for senior citizens. The revised interest rates are applicable for domestic, NRO, and NRE deposits. 

Read More: Budget 2023: Date, Timings, Where To Watch Live Speech and Telecast by Finance Minister Nirmala Sitharaman

3. Bandhan Bank  

Bandhan Bank, which is a private sector lender, has recently revised its fixed deposit rates for schemes less than Rs 2 crore. The rates are effective from January 5, 2023.  

The bank, after the revision, is now offering a maximum interest rate of 7.50 per cent for general investors and 8 per cent for senior citizens on a deposit tenor of 600 days.   

In general, the bank is offering interest rates ranging from 3.00 per cent to 5.85 per cent for general investors, and 3.75 per cent to 6.60 per cent for investors above 60 years (senior citizens) for schemes maturing between 7 days and 10 years. 

4. Punjab National Bank (PNB)  

Public-sector lender Punjab National Bank (PNB) has also revised its interest rates for fixed deposits below Rs 2 crore from January 1, 2023. The bank is now offering FD rates of 3.5 per cent and 7.25 per cent for general investors, while for senior citizens, the bank is offering revised interest rates of 4.30 per cent and 8.05 per cent.  

The bank is offering attractive interest rates on its 666 days maturity plan, under which general investors would get a revised rate of 7.25 per cent, whereas senior citizens and super senior citizens would get 7.75 per cent and 8.05 per cent, respectively. 

Super Senior Citizens are above 80 years, and they get an additional rate of interest of 80 basis points over and above the base or card rate for all maturity tenors. 

5. Kotak Mahindra Bank 

One of the top lenders in the market, Kotak Mahindra Bank hiked its interest rates on fixed deposits for schemes under Rs 2 crore. The rates were revised from January 4, 2023. Following the recent tweaks, the private lender is now offering interest rates between 2.75 per cent and 7 per cent. For senior citizens, it is offering interest rates ranging from 3.25 per cent to 7.50 per cent.  

The bank is offering the maximum interest rate of 7 per cent for the general public in the following schemes: 390 days, 391 days to 23 months, 23 months, and 23 months 1 day to 2 years. For senior citizens, the bank is offering 7.50 per cent interest rates for schemes maturing in 390 days, 391 days to 23 months, 23 months, and 23 months 1 day to 2 years.

Published on: Jan 12, 2023, 3:11 PM IST
Posted by: Basudha Das, Jan 12, 2023, 3:02 PM IST