Last Updated: January 09, 2023, 18:28 IST
After the increase in repo rates by RBI, many government and private banks have increased their savings and fixed deposit (FD) rates. Shivalik Small Finance Bank is one of them to have increased its savings and FD rates.
After the increase in interest rates, the bank is paying a maximum of 7.30 percent on savings accounts and 7.50 percent on FD to its general customers and 8 percent to senior citizens. The new rates have come into effect from January 5, 2023.
The Shivalik Small Finance Bank now offers 3.50 percent on deposits between Rs 1 to 10 lakh, 4 percent on deposits between Rs 10 lakh and 4.5 percent on deposits between Rs 50 lakh and Rs 1 crore. The bank will offer a 6 percent rate of interest on deposit amounts of Rs 1 crore to 2 crores.
The bank will also provide an interest rate of 7.25 percent on amounts over Rs 2 crore and less than Rs 7 crores. The highest rate of interest offered by the bank will be 7.30 percent for deposits of amounts above Rs 7 crores.
When it comes to FD durations, the rate of interest offered will be – 3/75 percent on FDs of 7 to 14 days, 4 percent on FDs of 15 to 29 days, 4.50 percent on FDs that will mature in 30 to 90 days, 5 percent on FDs maturing in 91 days to 180 days, 5.75 percent on FDs maturing between 6 months to 12 months and 6.75 percent for FDs that will be maturing in 12 months to 24 months.
The bank will be giving additional interest of 50 basis points to senior citizens. The maximum interest rate provided by the bank will be 8 percent which is reserved for senior citizens whose FDs will be maturing in 24 months to 36 months.
The Reserve Bank had increased the repo rate 5 times in the last year. To reduce inflation, the central bank increased the repo rate by another 0.35 percent to 6.25 percent in the bi-monthly monetary policy review on December 7, 2022.
SBI, PNB, Kotak Mahindra Bank, HDFC Bank, Yes Bank, Jan Small Finance Bank and more have recently increased their FD rates too. The trend of interest rates increasing for FDs in all of these banks was also a result of the increase in repo rate by RBI.
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