Last Updated: January 10, 2023, 13:07 IST
The Reserve Bank of India recently hiked the repo rate to control inflation. The repo rate has been increased for the fifth straight time since May 22. Following this, there have been changes in the interest rates offered by banks on Fixed deposits. In May FY22, the repo rate hiked by 0.35% from 5.9% to 6.25% during its monetary policy meeting held in December.
In an effort to fight inflation, the RBI has raised the repo rate by 225 basis points since May, to 6.25%. India’s annual retail price inflation decreased to 5.88% in November 2022 from 6.77% in October 2022, which was the lowest figure since December of the previous year. The sharp increase in interest rates, which has been spurred by the repo rate’s sixth consecutive rise, has investors in fixed deposit products delighted.
According to some economists, the RBI might propose or enact another increase in February 2023. The interest rates for fixed deposits under Rs. 2 crore, however, would increase in the first week of January 2023, according to a few institutions. Let’s examine the complete list right now.
Punjab National Bank
On January 1, Punjab National Bank (PNB) declared an increase in interest rates for savings accounts and fixed deposits. For balances of Rs. 100 crore or more, PNB increased the interest rate on savings accounts by 25 basis points, while the bank increased the interest rate on fixed deposits by up to 50 basis points for a variety of term buckets.
Indian Overseas Bank
Indian Overseas Bank (IOB) stated on January 1 that the FD interest rate on short-term deposits with tenors of 7 to 90 days would increase by 75 basis points. For deposits with a 444-day maturity period, the bank now offers a maximum interest rate of 6.55% to the general public; however, the additional rates for senior citizens and super senior citizens (those 80 years of age and above) remain at 0.50% and 0.75%, respectively.
Punjab & Sind Bank
The Punjab & Sind Bank announced the interest rate increase for fixed deposits on January 1. In contrast to Punjab & Sind Bank, which only gives a maximum interest rate of 7% on a tenor of 601 days, the bank currently offers interest rates on deposits ranging from 2.80% to 6.25% for maturities of 7 days to 10 years.
On January 5, 2023, Bandhan Bank hiked the interest rate on fixed deposits. The bank now offers interest rates ranging from 3.75% to 6.60% for senior citizens and from 3.00% to 5.85% for non-senior citizens for deposits maturing in 7 days to 10 years. The bank gives a maximum interest rate on deposits with a duration of 600 days (one year, seven months, and twenty-two days).
Read all the Latest Business News here