IDBI Bank on Tuesday increased its interest rates on fixed deposits of less than 10 to 25 basis points from 2 crores.
The hike comes on the heels of two repo rate hikes by the Reserve Bank of India in May and June by a total of 90 basis points (one bps is equivalent to one-hundredth of a per cent).
IDBI in its statement said that with effect from June 15, 2022, the revised rates will be applicable for various tenures for domestic fixed deposits, non-resident ordinary (NRO) and non-resident external (NRE) fixed deposits.
“In the current scenario of volatility in the financial markets as well as uncertainty at the global level and rising inflation domestically, fixed deposits are the most preferred mode of safe investment in the Indian market. Suresh Khatnahar, Deputy Managing Director, IDBI said, the bank offers its highest interest rate of 5.75% and under its brand “Naman Senior Citizen FD”, an additional 75 basis points higher interest rate up to 6.50% to resident senior citizen customers of maturity period. provides. Bank.
IDBI raised rates over six maturity periods. The rates on deposits ranging from 91 days to six months and between seven years and 10 years saw the highest increase of 25 bps to 4% and 5.75%, respectively.
State Bank of India (SBI) also on Tuesday increased its deposit rates by 15-20 basis points across three maturity buckets.