The largest financial institution in the nation, the State Bank of India, announced a hike in the rate for fixed deposits on December 13. A day later, on Wednesday, the large private sector bank HDFC made a comparable announcement and provided positive news to its clients for the previous year.
The increased rates on FDs under two crores would only take effect on December 14, 2022, according to the HDFC website. However, customers will now benefit from interest on FDs up to 7% by the revised rates.
Significantly, the biggest bank in the nation, SBI, had also announced a rise in the rates for bank FDs a day earlier. For FDs less than Rs 2 crore, the bank raised the interest rates, and the higher rates went into effect on December 13. It is noted that on October 22, 2022, SBI changed the interest rates on fixed deposits.
Following will be the interest rates:
7-14 days, 3%
15-29 days, 3%
30-45 days, 3.5%
46-60 days, 4.50%
61-89 days, 4.50%
9 months 1 day to 1 year, 6%
1 year to 15 months, 6.50%
15 years to 18 months, 7%
18 months to 21 months, 7%
21 to 2 years, 7%
2 years 1 day to 3 years, 7%
3 years 1 day to 5 years, 7%
5 years 1 day to 10 years, 7%
A big benefit for senior citizens
While HDFC Bank raised their senior citizen interest rates, this allows for the bank to be paid 50 basis points (bps) extra interest than the regular rate on deposits maturing within 7 days to 5 years. After this hike, elderly residents will receive an interest rate on FDs maturing in 7 days to 10 years ranging from 3.5 to 7.75%.
The bank also made a significant statement on its special fixed-term deposit (FD) called "Senior Citizen Care FD" for 5 to 10 years. Senior people will receive an additional 0.25% premium on top of the 0.50% on this FD. The deadline for this FD is March 31, 2023.
Following will be the interest rate for senior citizens
7 to 14 days, 3.5%
15 to 29 days, 3.50%
30 to 45 days, 4.00%
46 to 60 days, 5.00%
61 to 89 days, 5.00%
3 to 6 months or less, 5.00%
6 months 1 day to 9 months or less, 6.25%
9 months 1 day to 1 year, 6.50%
1 year to 15 months, 7.00%
15 months to 18 months, 7.50%
18 months to 21 months, 7.00%
21 months to 2 years, 7.50%
2 years 1 day to 3 years, 7.50%
3 years 1 day to 5 years, 7.50%
5 years 1 day to 10 years, 7.75%