HDFC Bank and ICICI Bank have cut their fixed deposit (FD) rates in select periods by 25 basis points (0.25 percent). This step has been taken by the Reserve Bank of India (RBI) after a 50 basis point cut in the repo rate on Friday, reducing the repo rate to 5.50%. After this move of both banks, many banks can cut interest rates on FDs in the coming days.
ICICI Bank’s FD Rate
According to the information shared on the official website of the bank, the interest rate for common citizens on fixed deposits of ICICI Bank is in a limit of 3% -6.6%, and interest rates for senior citizens are in a limit of 3.50% -7.10%. For common customers, two years, one day to five years period is 6.60% highest rate and 7.10% for senior citizens. Five years of tax saver FD is 6.60% annually for common customers and 7.10% for senior citizens.
The revised FD rates of ICICI Bank are applicable from June 10.
How much change HDFC Bank made
For HDFC Bank, FD rates of less than Rs 3 crore are in a limit of 2.75% -6.60% for ordinary citizens, while for senior citizens in a range of 3.25% -7.10% for senior citizens. HDFC Bank has also amended the interest rates for more than Rs 3 crore or its equivalent fixed deposits. It is effective from June 10. Interest rates for ordinary citizens are within 4% -6.30% and 4.50% -6.80% for senior citizens.
HDFC Bank’s revised rates of FD of less than Rs 3 crore are also applicable from today.
People have been giving preference to fixed deposits (FD)
Earlier this year, it was reported from the Reserve Bank of India (RBI) figures that people are giving preference to fixed deposits (FD). The growth of fixed deposits with attractive interest has exceeded the current account and savings account (CASA) increase. Its total deposits increased to 61.4 percent in September this year, which was 59.8 percent a year ago. The fixed deposit with an interest rate of more than seven percent has increased to 68.8 percent, which was 54.7 percent a year ago. According to the data, bank deposits were 11.7 percent in September 2024 on an annual basis.
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