Reserve Bank of India (RBI) raised the Repo Rate – the interest rate at which the – to keep inflation in check following the decision to pump in money during the Covid-19 pandemic. The Repo Rate determines our EMIs (equated monthly instalment) and stands unchanged at 6.5% since February 2023.
Earlier this month RBI governor Shaktikanta Das said they are changing stance from “withdrawal of accommodation” to “neutral”, which indicates a step closer towards trimming the Repo Rate. While a rate cut can reduce EMIs on existing and future loans, it will also bring down interest rates on Fixed Deposits (FD). So the days of peak interest rates on FDs that the common man is enjoying could be numbered. Before rates again start crawling downwards, here is a glance at the highest interest rates that are offered by 10 major banks.
SBI, HDFC Bank FD rates
State Bank of India (SBI) is offering a peak rate of 7.25% (general customers) and 7.75% for senior citizens on FD for 444 days. The highest rate offered by HDFC Bank is 7.40% and 7.90% (general and senior citizens respectively) on FD for 55 months.
ICICI Bank, Axis Bank FD rates
ICICI Bank offers its highest rates 7.25% and 7.80% on FDs of duration 15 months to less than 18 months. The highest rates of FD of Axis Bank are 7.25% and 7.75% respectively. They are available on FDs of 4 maturity periods – 15-16 months, 16-17, 17-18 and 18 to less than 24 months.
PNB, BoB FD rates
PNB (Punjab National Bank) offers 7.25% and 7.75% on FDs of duration 400 days.
Bank of Baroda (BoB) offers 7.15% and 7.65% on FDs bearing maturity periods between 2 years and less than 3 years.
On FDs of duration 391 days to less than 23 months, Kotak Bank offers 7.40% and 7.90%. Bandhan Bank’s highest rates are 8.05% and 8.55% respectively available for FDs of 1 year.
Indian Overseas Bank offers 7.30% (general), 7.80% (senior) and 8.05% (super senior) customers on FDs of 444 days. Central Bank’s peak rates are 7.45% and 7.95% on FD of 444 days.
In its latest statement, the RBI governor has said that they are shifting the stance from “withdrawal of accommodation” to “neutral”, indicating concern for FD customers. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
