After the Reserve Bank of India announced an increase in the key lending rate earlier this month, country’s largest private lender HDFC Bank has hiked fixed deposit (FD) interest rates. The lender has raised the FD interest rates after a gap of two months by up to 40 basis points.
The new interest rates are effective from August 18, 2022 and are applicable for FD amounts less than Rs 2 crore. Now, one year to two years tenure will earn 5.50 per cent interest rate, up from 5.35 per cent, an increase of 15 basis points. Tenure of two years, one day to three years will continue to earn 5.50 per cent, according to the HDFC Bank website.
The bank has hiked interest rate by 40 bps on tenure between three-year one day to five years to 6.10 percent from 5.70 percent earlier.
Latest HDFC Bank FD interest rates
The key lending rate has been hiked six times since May this year with the cumulative hike totalling to 140 bps. The repo rate hikes over the past three months have cumulatively increased it to 5.4 per cent, which is the highest since August 2019.
Other banks also hike FD rates
Post RBI’s announcement to raise the repo rate, several banks have increased FD rates, which is good news for investors who have been earning decadal low interest rates. These banks include Axis Bank (with effect from August 11), Kotak Mahindra Bank (with effect from August 10), Yes Bank (with effect from August 11).
Public sector lender State Bank of India (SBI) has also raised the interest rates on select fixed deposit (FD) tenures by up to 15 bps. According to the bank’s website, the increased rates are effective from August 13, 2022, and are applicable for FDs worth less than Rs 2 crore.
