At a time when core inflation remains moderately low, the Reserve Bank of India has kept the policy repo rate unchanged at 6.5 percent after giving six consecutive hikes. As announced by RBI governor Shaktikanta Das last month after the monetary policy committee meeting, the decision to pause any hike has been taken for that particular meeting and it will not hesitate to take action if necessary. With the unchanged repo rates, not all banks have taken this into consideration, thus keeping their loan rates and fixed deposit interest rates also unchanged. However, a few banks have indeed hiked their interest rates on fixed deposits, effective from May 2023.
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Banks hike interest rates on fixed deposits
Federal Bank: In effect from 17 May 2023, Federal Bank has revised its interest rates on both savings accounts and fixed deposits of less than Rs 2 crore. As per the fresh revisions, a maximum interest rate of 7.25 percent will be given to the general public, while senior citizens will receive an interest rate of 7.75 percent.
DCB Bank: In effect from 8 May 2023, DCB Bank has revised its interest rates on fixed deposits of less than Rs 2 crore, hiking it to 8 percent for the general public and 8.50 percent for senior citizens.
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Kotak Mahindra Bank: In effect from 11 May 2023, Kotak Mahindra Bank has hiked its interest rate on fixed deposits of less than Rs 2 crore by 50 bps for a 180-day term and 10 bps for a 365-day term, increasing it to 7 percent and 7.10 percent respectively.
Suryoday Small Finance Bank: In effect from 5 May 2023, Suryoday Small Finance Bank has hiked its interest rates on fixed deposits, offering 4 percent to 9.10 percent to the general public 4.50 percent to 9.60 percent to senior citizens on deposits of less than Rs 2 crore.
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Unity Small Finance Bank: In effect from 2 May 2023, Unity Small Finance Bank has revised its interest rates to 9 percent for general public and 9.50 percent for senior citizens on fixed deposits held for 1001 days.
