Private sector lender HDFC Bank has revised interest rates on fixed deposits (FD) below Rs 2 crore for the second time in August. The new FD rates vary from 3.50 per cent to 7 per cent on deposits for general customers, depending upon investment and period of deposit. The new rates will come into effect on August 30. For senior citizens, the interest rates on investment below Rs 2 crore vary from Rs 4 per cent to 7.50 per cent.
As per the HDFC Bank website, the revised interest rates for FD for 7-14 days is 3.50 per cent; 4.25 per for 15-29 days; 5.15 per cent for 30-45 days; 5.65 per cent for 46-60 days to 6 months; 6.25 per cent for 181 days to 9 months; 6.35 per cent for 9 months 1 day-1 year; 6.9 per cent for 1 year; 6.8 per cent for 1 year 1 day-2 years; 7.1 per cent for 2 years 1 day-3 years; and 7 per cent for 3 years 1 day-10 years.
For senior citizens, investment for 181 days-9 months period will fetch 6.75 per cent interest rate and investment for less than or equal to two years will fetch 7.30 per cent interest. Those investing for 5-10 years will get 7.50 per cent interest rate. Notably, interest rates are subject to change from time to time.
State Bank of India and Punjab National Bank had also recently revised the interest rates on fixed deposits effective August 1 and 2, respectively. These rate cuts come just after the RBI reduced lending rates for the third time in a row in its June policy review.
How interest on term deposits is calculated
- Quarterly for deposits less than 6 months
- Simple interest is paid at maturity for deposits more than or equal to 6 months
- Cumulative interest/re-investment interest is calculated every quarter and is added to the principal such that interest is paid on the interest earned in the previous quarter as well
- In case of monthly deposit scheme, the interest will be calculated for the quarter and paid monthly at a discounted rate over the standard FD rate.
Edited by Manoj Sharma