Several banks have raised their fixed deposit interest rates after the Reserve Bank of India increased repo rates by 140 points in the last three months to 5.4 per cent currently. This is good news for old-school investors who firmly believe in traditional fixed deposits and post office deposit saving instruments.
Among the banks that have recently hiked their interest rates on fixed deposits under Rs 2 crore are Karur Vysya Bank, Kotak Mahindra Bank, Karnataka Bank and City Union Bank. The latest rates go as up as 6.20 per cent for the general public while 6.60 per cent for senior citizens.
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Kotak Mahindra Bank
Effective from September 6, Kotak Mahindra Banks FDs maturing in 390 days to less than 23 months will now earn 6 per cent interest. The bank will now offer fixed deposits with maturities ranging from 23 months to less than 2 years at an interest rate of 6.10 per cent.
The lender has hiked interest rates on FDs maturing in 2-10 years to 6 per cent. FD rates for terms ranging from 23 months to less than two years, at a rate of 6.10 per cent.
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Karur Vysya Bank FD rates
As per the revised rates effective from September 1, a 4 per cent interest rate will be offered on fixed deposits maturing in 7 to 30 days. The interest rate offered is 5.25 per cent on deposits maturing in 31 to 45 days. The rate on fixed deposits with maturities ranging from 46 to 90 days is 5.25 per cent.
Fixed deposits maturing between 91 and 120 days will now earn 5.25 per cent, while term deposits maturing between 121 and 180 days will earn 5.50 per cent. The lender will offer a 5.75 per cent interest rate on fixed deposits maturing in 181 days to 270 days, and a 5.90 per cent interest rate on fixed deposits maturing in 271 days to less than a year.
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Fixed deposits with maturities of one to two years will now earn 6.10 per cent interest, while term deposits with maturities of two to three years will earn 6.10 per cent interest. The bank will pay 6.10 per cent on fixed deposits maturing in three to six years or more.
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City Union Bank
City Union Bank revised the interest rates on fixed deposits under Rs 2 crore with effect from September 1. According to the revision, the bank will now offer interest rates in the range of 4.00 per cent and 6.00 per cent for the general public and 4.00 per cent to 6.25 per cent for seniors.
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Karnataka Bank
The Mangaluru-based bank will offer 6.20 per cent interest rate to the general public on a one year term while senior citizens will get 6.60 per cent on the same term. The new rates come into effect from September 1, 2022.
