Multiple banks have introduced new fixed deposit schemes and adjusted their previous interest rates ahead of the Reserve Bank of India’s Monetary Policy Meeting this week. The RBI’s Monetary Policy Committee (MPC) quarterly meeting is set to start on June 5, following closely after the announcement of Lok Sabha election results, which are scheduled for Tuesday.
The six-member expert committee responsible for determining India’s repo rate is scheduled to convene their meeting from June 5 to June 7. The repo rate, which influences bank borrowing costs and subsequently impacts loan interest rates for both businesses and individuals, will be announced by RBI Governor Shaktikanta Das at 10 am on June 7. This marks the second meeting of the RBI’s Monetary Policy Committee (MPC) in the new financial year FY25 starting April 1.
Throughout 2024, the central bank has maintained the repo rate at 6.50 per cent, adhering to its stance of ‘withdrawal of accommodation’. This repo rate, a key factor in determining bank borrowing costs, has a direct impact on fixed deposit rates. Notably, a cumulative increase of 2.5 per cent in the repo rate leading up to the pause in April 2023 pushed fixed deposit interest rates to their highest level in the past four to five years. The RBI’s last adjustment saw the repo rate rise from 6.25 per cent to 6.5 per cent in February 2023. Therefore, investors in fixed deposits may consider allocating additional funds to such schemes until further adjustments are made by the RBI.
Indian Bank
Indian Bank has launched two new fixed deposit schemes: Ind Supreme 300 Days and Ind Super 400 Days. Under the Ind Supreme 300 Days scheme, the interest rates are 7.05 per cent for the general public, 7.55 per cent for senior citizens, and 7.80 per cent for super senior citizens. For the Ind Super 400 Days scheme, the interest rates stand at 7.25 per cent for the general public, 7.75 per cent for senior citizens, and 8 per cent for super senior citizens. Investors have until June 30, 2024, to invest in these FD opportunities.
Bank Of India
Bank of India has introduced a fixed deposit scheme titled ‘666 Days – Fixed Deposit’. This plan promises attractive returns, offering up to 7.95 per cent per annum for super senior citizens for a duration of 666 days, applicable for deposit amounts less than Rs 2 crore. Senior citizens are eligible for an interest rate of 7.8 per cent per annum, while general customers can avail themselves of a rate of 7.3 per cent per annum under this FD scheme. The updated interest rates apply to domestic, NRO, and NRE Rupee Term deposits, which come into effect from June 1, 2024.
Meanwhile, the Bank of India provides a variety of FD schemes with interest rates spanning from 3 per cent to 7.67 per cent, covering periods from 7 days to 10 years.
Read More: HDFC Bank Fixed Deposit Returns Calculator: Step-by-step guide
IDBI Bank
IDBI Bank offers exclusive rates for Utsav fixed deposits. For a 300-day maturity period, general citizens receive 7.05 per cent interest, while seniors enjoy a rate of 7.55 per cent. Rates for a 375-day maturity period are 7.1 per cent and 7.6 per cent, respectively, for general citizens and seniors. Additionally, a 444-day maturity period offers 7.2 per cent for general customers and 7.7 per cent for seniors. These rates are valid until June 30, 2024.
SBI Bank
The State Bank of India (SBI) has adjusted the fixed deposit interest rates for retail and bulk term deposits. According to the SBI website, these revised FD rates came into effect on May 15, 2024.
In 2023, the bank introduced the SBI Sarvottam term deposits. Through this FD scheme, SBI has assured investors that they will receive superior interest rates compared to conventional fixed deposits.
SBI Sarvottam term deposits offer a 7.4 per cent interest rate for a two-year term and 7.10 per cent for a one-year term. Senior citizens enjoy a 50 basis points (bps) premium above the standard interest rate. For two-year deposits, their interest rate is 7.9 per cent, and for one-year deposits, it is 7.6 per cent.
Read More: Fixed deposits: Top 6 banks offer highest interest rates on their 5-year FDs
Punjab and Sindh Bank
Punjab and Sindh Bank has introduced special fixed deposit schemes for different durations. The bank provides a 7.05 per cent interest rate for FDs maturing in 222 days, 7.10 per cent for deposits maturing in 333 days, and 7.25 per cent for special deposits with a maturity period of 444 days. Investors have until June 30, 2024, to invest in these special FDs.
