Home / Money / Personal Finance /  RBL Bank revises interest rates on retail fixed deposits: Now get up to 7.25%

RBL Bank, a lender in the private sector, has changed the interest rates on fixed deposits under 2 crore. On October 1, 2022, the new rates will go into effect, according to the bank's official website. The impact of the RBI's repo rate hike to 5.90%, which was announced on Friday, resulted in the interest rate hike of RBL Bank today. RBL Bank will now provide a maximum interest rate of 7.75% for senior citizens and 7.25% for the general public on deposits maturing in 725 days, which is higher than the 7% retail inflation as determined by the Consumer Price Index (CPI), which soared in August.

RBL Bank FD Rates

The bank will now give an interest rate of 3.25% on deposits maturing in the next 7 to 14 days, while RBL Bank will now offer an interest rate of 3.75% on deposits maturing in the next 15 to 45 days. Fixed deposits with maturities between 46 and 90 days now have an interest rate of 4.00%, while term deposits with maturities between 91 and 180 days now have a 4.50% interest rate. On deposits that mature from 181 days to 240 days, RBL Bank will now pay an interest rate of 5.00%, and on deposits that mature from 241 days to 364 days, the bank will now pay an interest rate of 5.25%.

On retail term deposits maturing in 365 to 452 days (12 months to less than 15 months), RBL Bank will now offer an interest rate of 6.50% and on term deposits maturing in 453 to 459 days (15 months), the bank will offer an interest rate of 7.00%. Fixed deposits maturing in 460 to 724 days (15 months 1 day to less than 725 days) will now fetch an interest rate of 7.00% and term deposits maturing in 725 days will now fetch a maximum interest rate of 7.25%.

RBL Bank will now offer an interest rate of 7.00% on deposits maturing in 726 days to less than 24 months and the bank will now offer an interest rate of 6.75% on deposits maturing in 24 months to less than 36 months. Fixed deposits maturing in 36 months to 60 months and1 day will now fetch an interest rate of 6.55% and term deposits maturing in 60 months and 2 Days to 240 months will now fetch an interest rate of 5.75%. On Tax Savings Fixed Deposit (60 months), RBL Bank is now offering an interest rate of 6.55%.

RBL Bank FD Rates
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RBL Bank FD Rates (rblbank.com)

Simple interest will be used to determine interest at maturity for fixed deposits with terms shorter than 181 days. According to the bank, the revised rates are valid for both new fixed deposits and renewals of existing fixed deposits.

RBL Bank has mentioned on its website that “On premature full/partial withdrawal of the Fixed Deposit, interest shall be paid at the rate that was applicable on the date the deposit was placed and for the period for which the deposit is maintained with the Bank, subject to a penalty of 1% on such rate. However, there is no penalty for premature withdrawal of Fixed Deposits by senior citizens/super senior citizens."

“Senior Citizens (60 years to less than 80 years) are eligible for additional interest rate of 0.50% p.a. and Super Senior Citizens (80 years and above) are eligible for additional interest rate of 0.75% p.a. Senior Citizens/Super Senior Citizens rates are not applicable on Non Resident Fixed Deposits (NRE/NRO)," stated RBL Bank on its website.

The RBI increased the repo rate by 0.5% again at its most recent monetary policy meeting on September 30, 2022, and there is no break in the rate rise cycle to 190 bps that began in May 2022 and has resulted in banks raising FD interest rates. Since most banks began raising the interest rates on their fixed deposits to match the demand for credit, the influence on the repo rate has been there since day one. Banks like ICICI Bank, Bank of India, Axis Bank, and RBL Bank have started raising interest rates in response to the current cycle's fourth consecutive increase in the repo rate. The rest of the banks are anticipated to fall into line, which is a big deal for fixed deposit investors who want to outperform inflation in terms of earning returns.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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