Fixed deposit interest rates are increasing thus giving some respite to the fixed income investors especially retirees and senior citizens. Many banks have already increased their fixed deposit interest rates. With RBI increasing the repo rate by 0.90 per cent over two separate rate hikes in the last 2 months, the cost of funds has gone up and the increase in FD rates looked imminent.
Among the leading banks, SBI, Bank of Baroda, ICICI Bank, HDFC Bank, PNB, Axis bank have already increased the FD rates.
Bank of Baroda Latest FD Rates
Bank of Baroda has hiked fixed deposit interest rates on Domestic Term Deposits including NRO and NRE Term Deposits of below Rs 2 crore by up to 40 basis points. These rates are applicable with effect from June 15, 2022.
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Above 1 Year to up to 400 days: 5.45
Above 400 days to up to 2 Years: 5.45
Above 2 Years to up to 3 Years: 5.50
Above 3 Years and upto 5 Years: 5.35
Above 5 Years and upto 10 Years: 5.35
Additional rate of 0.5 per cent will be there for senior citizens.
SBI Latest FD Rates
SBI has revised Interest Rates On Retail Domestic term deposits (Below Rs. 2 crore) effective June 14, 2022.
1 year to less than 2 year 5.30
2 years to less than 3 years 5.35
3 years to less than 5 years 5.45
5 years and up to 10 years 5.50
Senior citizens will get an additional rate of 0.5 per cent on their deposits.
Read More: Bank of Baroda hikes interest rates on term, savings deposits
A special “ SBI Wecare” Deposit for Senior Citizens gives an additional premium of 30 bps (over and above the existing 50 bps) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme is extended up to 30th September, 2022.
ICICI Bank Latest FD Rates
ICICI Bank has revised Interest Rates On Retail Domestic term deposits (Below Rs. 2 crore) effective June 16, 2022.
1 year to 389 days: 5.30%
390 days to < 15 months: 5.30%
15 months to < 18 months: 5.30%
18 months to 2 years: 5.30%
2 years 1 day to 3 years: 5.50%
3 years 1 day to 5 years: 5.70%
5 years 1 day to 10 years: 5.75%
5 Years (80C FD) – Maximum Rs 1.50 lakh: 5.70%
Additional rate of 0.5 per cent will be there for senior citizens.
As FD interest rates are expected to move higher in the short-to-medium term, it is better to use ‘laddering’ approach while investing in fixed deposits. Keep investing in short term deposits and as and when they mature lock in the funds in longer tenures.
