Private sector lender ICICI Bank has hiked interest rates on fixed deposits of less than Rs 2 crore on all tenors. As per its website, the new rates are already in effect as of September 30, 2022. Earlier on Friday, the Reserve Bank of India (RBI) increased its key repo rate by 50 basis points taking it to 5.9 per cent. This is the fourth time since May the central bank has increased the repo rate. Most lenders in the country are expected to revise their fixed-term deposit rates after the RBI increases its repo rate.
ICICI Bank is the first bank to make the changes in interest rates. The lender will offer a revised rate between 3 per cent and 6.10 per cent for tenors from 7 days to 10 years.
Rates raised by 25 bps
The bank increased the interest rate on fixed deposits maturing in 7 days to 29 days by 25 bps, from 2.75 per cent to 3.00 per cent, and also increased the interest rate on term deposits maturing in 30 days to 90 days by 25 bps, from 3.25 per cent to 3.50 per cent.
Fixed deposits with maturities between 91 and 184 days will now offer an interest rate of 4.25 per cent, which was 4 per cent, a 25-bps increase, and term deposits with maturities between 185 and less than a year will now offer an interest rate of 4.90 per cent. It was 4.65 per cent before.
Rates hiked by 20 bps
The private lender raised the interest rates for schemes maturing in 1 year to 2 years by 20 bps. The current is 5.70 per cent. For deposits maturing in 2 years 1 day to 3 years, the rate is now 5.80 per cent, a hike of 20 bps from 5.60 per cent.
Rates hiked by 0-10 bps
For deposits maturing in 5 years, 1 day to 10 years, the interest rates will be 6.00 per cent, up from 5.90 per cent, a 10-basis point increase.
For the deposits maturing in 3 years, 1 day to 5 years, the rate has been kept unchanged to 6.10 per cent. The bank will continue to provide an interest rate of 6.10 per cent for 5 Years (80C FD).
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