In the last five months, we have seen an increase in the repo rate by 190 bps. RBI’s Monetary Policy Committee has increased the repo rate by 50 basis points to 5.9%. The hike in repo rate has brought cheer to investors as banks hike interest rates on savings, fixed deposits (FDs) and recurring deposits (RDs). After RBI’s latest repo rate hike, banks including government and private have also announced an increase in the interest rate on fixed deposits.
7% plus offer on Canara Bank Fixed Deposit
Leading Public Sector Lenders Canara Bank Recently the interest rate on fixed deposits has been increased below 2 crores. Canara Bank has launched a special fixed deposit scheme for a tenure of 666 days. As per this scheme, private sector lenders are offering an interest rate of 7% to their general customers, while senior citizens will get an interest rate of 7.5% on these deposits. This special fixed deposit scheme launched by the state owned bank is for the below amount 2 crores.
Private Banks Offering FD Rates Above 7%
Among the private banks Bandhan Bank, IDFC First Bank and RBL Bank are offering the best interest rates.
Bandhan Bank FD Rates
Above 18 months to less than 2 years – 7.00% for general customers and 7.50% for senior citizens
2 years to less than 3 years – 7.00% for general customers and 7.50% for senior citizens
3 years to less than 5 years – 7.00% for general customers and 7.50% for senior citizens.
These rates are effective from August 22.
RBL Bank FD Rates
For deposits maturing in 15 months, RBL Bank is offering 7% to general customers and 7.50% to senior citizens.
For deposits maturing in less than 15 months 1 day to 725 days, RBL Bank is offering 7% to general customers and 7.50% to senior citizens.
For deposits maturing in 725 days, RBL Bank is offering 7.25% for general customers and 7.75% for senior citizens.
For deposits maturing in less than 24 months in 726 days, RBL Bank is offering 7% to general customers and 7.50% to senior citizens.
These rates are effective from October 1.
IDFC First Bank FD Rates
For deposits maturing in 750 days, RBL Bank is offering 7.25% for general customers and 7.75% for senior citizens.
These rates are effective from October 10.
Small Finance Bank offers FD rates above 7%
Fincare Small Finance Bank and Ujjivan Small Finance Bank offer 7.5% interest on FDs. The investment tenure in Fincare Small Finance Bank is 1,000 days. Similarly, the investment tenure to earn the given interest rates in Ujjivan Small Finance Bank is 525 days and 990 days.
Suryoday Small Finance Bank offers 7.49% interest on deposits maturing in 999 days.
Jana Small Finance Bank offers 7.35% on FDs maturing in more than three years but less than five years.
Equitas Small Finance Bank offers 7.32% on FD with tenure of 888 days.
The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in fixed deposits up to 5 lakhs.
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