HDFC Bank raises FD rates by up to 0.6 percentage points
The revised rate of interest on HDFC Bank fixed deposits (FDs) is effective from today on maturities ranging from six months to five years
New Delhi: Days after the Reserve Bank of India (RBI) hiked its repo rate, HDFC Bank Ltd today increased fixed deposit (FD) rates on various maturities by up to 0.6 percentage points. The revised rate of interest is effective today, as per the information posted on HDFC Bank website. The increase in FD rates is likely to put pressure on lending rate as well.
HDFC Bank has raised interest rate on term deposit with maturity ranging between 6 months 1 day to 5 years. The deposit of maturity 6-9 months would earn 6.75%, 40 basis points higher than previous rate. Interest rate on fixed deposit of longer tenure of 9 months three days to less than 1 year has been raised by 60 basis points while for one year it has been increased by 40 basis points to 7.25%. FDs beyond 2 years 1 day to 5 years will earn 10 basis points higher rate of interest than the previous.
One basis point is one-hundredth of a percentage point.
RBI last week increased the benchmark short-term lending rate (repo rate), at which it lends to other banks, by 0.25 percentage point to 6.5% on inflationary concerns.
The retail inflation, which is factored in by the central bank’s monetary policy committee, spiked to a five-month high of 5% in June on costlier fuel. The government has mandated RBI to keep inflation at 4% (+/- 2%).