Private sector lender HDFC Bank has hiked interest rates on fixed deposits (FDs) for retail investors. The higher rates took effect from 6 November, 2018. HDFC Bank raised interest rates on FDs by up to 50 basis points across various tenors. After the latest hike, HDFC Bank is offering 6.5% on FDs with maturity of 5-8 years and 8-10 years, up from 6% earlier. Interest rates on fixed deposits of 3-5 years go up to 7.25% from 7.1% earlier. Similarly, the interest rate of one-year HDFC Bank FD goes up to 7.3% from 7.25%.

Banks have been increasing fixed deposit rates with hardening of the overall interest rate regime. According to latest RBI data, non-food bank credit of scheduled commercial banks rose 11.3% to 80.25 trillion in September 2018 as compared to an increase of 6.1% in the same month last year.

HDFC Bank offers fixed deposits with maturities starting as low as 7-14 days and going up to 8-10 years. The private sector lender offers a 50 basis point higher interest rate to senior citizens across all maturities.

Across other various maturities, from one year to two years, HDFC Bank is offering interest rate of 7.3% while for 2-3 year tenures the interest rate goes up to 7.4%.

These are the latest interest rates on HDFC Bank FDs across various maturities

Source: www.hdfcbank.com
Source: www.hdfcbank.com

The country’s largest bank, SBI, had earlier revised its FD rates on 30 July. SBI also pays 50 basis point higher interest rates to senior citizens across all maturities. SBI offers interest of 5.75% on FDs with maturity of 7-45 days. The FD rates go up to 6.25% for deposits of 46-179 days, 6.35% for 180-210 days and 6.4% for 211 days to less than 1 year.

For higher FD maturities of 1 year to less than 2 years, SBI is offering 6.70%; for 2 years to less than 3 years, 6.75%; and for 3 years to less than 5 years, 6.80%. For FDs of maturity between 5 years and up to 10 years, SBI is offering an interest rate of 6.85%.

These are the latest interest rates on SBI FDs across various maturities

Latest interest rate on SBI bank FDs across various maturities

Source: www.sbi.co.in
Source: www.sbi.co.in

Another state-owned lender, Bank of Baroda, announced a hike in lending rates. “The MCLR has been reviewed at 10 bps above the existing level w.e.f. November 7, 2018," the bank said in a statement. The bank’s latest 1-year MCLR, which is applicable on home loans, is 8.65%. For other tenors - overnight, one month, three months and six months - the rates are 8.15 per cent, 8.20 per cent, 8.30 per cent and 8.50 per cent, respectively.

With Agency Inputs

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