Kolkata: After a gap of five years, the Reserve bank of India has flagged off the declining interest rate cycle in the country with a view to making cheaper funds available to the common consumer and lending institutions as a whole with a view to boosting consumption and growth rates. In the first week of February, RBI monetary policy committee — the rate-setting body of India’s central bank — trimmed the repo rate from 6.50% to 6.25%. What’s more important is that a SBI Research report has stated that there could be two more such acts of trimming the key policy rate this year.
No doubt, the downward interest rate cycle will bring down the interest banks pay their customers on fixed deposits (FD) on various tenures. Therefore, this is the best time for depositors to lock long term interest rates. Though FDs lag behind equities and equity-linked mutual funds in returns, they are an extremely significant investment instrument for millions of Indians, especially those who are risk-averse. Also, personal finance strategists advise investors to park a part of their portfolio into debt and guaranteed-return instruments. Against this backdrop let’s have a look at the rate of interest in some of India’s top banks for tenures 3 years and above.
SBI and HDFC Bank FD interest rates
The largest bank in the country State Bank of India, or SBI, pays an interest rate of 6.75% and 7.25% to general customers and senior citizens on FDs of tenure between 3 years and 5 years. On FDs between 5 years and 10 years, SBI pays an interest of 6.50% and 7.50%.
Now take the example of the biggest private sector bank in India — HDFC Bank. HDFC Bank pays interest on FDs with tenure 3 Years 1 day to < 4 Years 7 Months at 7% (general customers) and 7.5% (senior citizens). On FDs of tenure 4 Year 7 Months (55 months), the interest rates are 7.4% (general customers) and 7.9% (senior citizens). If the tenure is between 4 Year 7 Months 1 day and 10 years, the rates of interest in HDFC Bank FD are 7% to general customers and 7.5% to senior citizens.
ICICI Bank and AXIS Bank FD interest rates
ICICI Bank is the second biggest private sector bank in India. It pays an interest rate of 7% to general customers and 7.5% to senior citizens on FDs that range from 3 years to 5v years and 6.9% and 7.4% to general customers and senior citizens on FDs the tenure of which lies between 5 years 1 day and 10 years. But for 5-year FDs (which are also known a tax-saver FDs, the rates of interest are 7% and 7.5% for general customers and senior citizens respectively.
Kotak Mahindra Bank and Bandhan Bank FD interest rates
Kotak Mahindra Bank pays interest rates of 7% (for general customers) and 7.60% (senior citizens) on FDs of maturity periods between 3 years and less than 4 years; the same rates for any FD between 4 years and less than 5 years. The rates come down slightly to 6.2% (general customers) and 6.7% (senior citizens) for any FD between 5 years 1 day to 10 years.
The interest rates on Bandhan Bank FD are the following: for tenure of 3 years to less than 5 years 7.25% for general customers and 7.75% for senior citizens; for tenure between 5 years and 10 years 5.85% for general customers and 6.60% for senior citizens.
After a gap of five years, the Reserve bank of India has flagged off the declining interest rate cycle in the country with a view to making cheaper funds available to the common consumer and lending institutions as a whole with a view to boosting consumption and growth rates. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
