Following the RBI's monetary policy committee's (MPC) third straight repo rate cut by 25 basis points (bps) to 5.75%, several private sector lenders have revised their interest rates on Fixed Deposits (FDs).
Fixed Deposits are the most traditional form of savings popular amongst Indians due to guaranteed returns, low risk and security.
Here's a look at the FD rates offered by the State Bank of India (SBI), HDFC, ICICI, Axis Bank and Kotak Mahindra Bank. A comparison:-State Bank of India (SBI)- The public sector bank offers FD interest rates varying from 5.75% pa to 6.85% pa for tenures beginning 7 days to 10 years for bulk deposits up to Rs 10 crores. However, the interest rates for senior citizens range from 6.25% pa to 7.35% pa.
HDFC Bank- The private sector lender which revised its FD rates from June 12 offers its account holders interest rates varying from 3.50% pa to 6.75% pa for the term starting 7 days to 10 years for the bulk deposits up to Rs 5 crores. While the bank offers its senior citizens interest rates ranging from 4% pa to 7.25% pa.
ICICI Bank- The private sector lender on June 17 lowered its interest rates by between 10 bps and 25 bps on select maturities for domestic deposits under Rs 2 crore. The bank will now pay 6 per cent for deposits of tenures 61-90 days, 91-120 days and 121-184 days compared to 6.25 per cent previously. Similarly, the new rate on maturity period of 390 days to 2 years has come down to 7 per cent from 7.10 per cent, while that on 2-3 year tenure is down 20 bps to 7.3 per cent.
Axis Bank- Axis Bank's revised rates on domestic deposits came into effect on June 15. According to a bank spokesperson, it has cut its deposit rates in select buckets for deposits of up to Rs 2 crore for maturities of over one year. For instance, the bank is now offering 7.10 per cent on 1-year tenure, down from 7.3 per cent previously.
Kotak Mahindra Bank- The private sector bank has gone a step further and rejigged its buckets, reducing the total tenures on offer from 20 to 18. The interest rate on the 18 months to less than 2 years tenure is now 7.10 per cent while previously three separate buckets between 391 days and less than 2 years earned 7.20 per cent. Similarly, deposits of 2-3 year maturity now earn 10 bps less at 7 per cent.