Several banks have increased their deposit rates in recent weeks in a bid to attract fresh depositors, as banks are scrambling for funds to meet the growing credit demand.
From an average of 5 percent-5.5 percent a few months ago, deposit rates have surged to 7-9 percent levels. For savers, this is good news, as bank deposits are traditionally considered safer instruments compared to equity markets.
For those who want to know which bank is offering how much interest, here’s an explainer.
State Bank of India (SBI)
India's largest public sector bank has increased interest rates by 25 basis points (bps) on fixed deposits (FDs) below Rs 2 crore, with effect from February 15.
Moreover, the bank is offering a 400-day deposit scheme at 7.10 percent rate of interest. Senior citizens get additional interest.
ALSO READ: Senior Citizens FD rates | Private banks that offer up to 8.35% interest on three-year FDs
Punjab National Bank (PNB)
Punjab National Bank raised interest rates on FDs by up to 50 bps for different tenures, with effect from December 19, 2022.
The lender hiked interest rates on savings deposits by 0.25 percent. Also, rates of FDs below Rs 2 crore have been increased by up to 0.5 percent.
On domestic term deposits for one year, the bank is offering a rate of 7.55 percent. For one year to 665 days, the rate offered is 7.55 percent. Also, for deposits between 667 days to two years and two years to three years, PNB is offering 7.55 percent.
Kotak Mahindra Bank
Kotak Mahindra Bank, on February 9, said it has increased the interest rates on FDs by up to 25 bps for the 15 months to two-year tenor bucket, effective February 10.
With this, the bank will now offer 7.60 percent interest per annum for senior citizens on deposit amounts of up to Rs 2 crore. An interest rate of 7.25 percent will be offered for deposit amounts between Rs 2 crore and Rs 5 crore and 7.10 percent for deposit amounts up to Rs 2 crore in the 12 months and 25 days to two-year tenor bucket.
Bandhan Bank
Kolkata-based Bandhan Bank has increased the interest rates on FDs by up to 50 bps across different maturities, effective February 6.
The bank is now offering 8.5 percent interest per annum for senior citizens and 8 percent for others for deposits with a tenure of 600 days. Similarly, for one-year deposits, the revised rate now stands at 7 percent.
Axis Bank
Private sector lender Axis Bank has increased its interest rates on FDs of less than Rs 2 crore, with effect from February 11, 2023.
The bank is now providing an interest rate of 3.50 percent on FDs that mature in the next seven to 45 days as a result of the increased rates. The bank is currently offering an interest rate of 4 percent for deposits that mature in the following 46 to 60 days.
ICICI Bank
Another private sector lender, ICICI Bank, announced a rise in interest rates on bulk FDs of Rs 2 crore to less than Rs 5 crore, effective February 7, 2023.
The bank now promises an interest rate of 6.65 percent for FDs maturing in 271 days to less than a year, and 7.10 percent for deposits maturing in a year to 15 months.
ICICI Bank is guaranteeing a maximum return of 7.15 percent on deposits with terms between 15 months and two years, while customers will now receive an interest rate of 7 percent on their bulk deposit tenors of 1 day to 2 years.
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