Fixed Deposit Rates

This announcement is in line with the Reserve Bank of India's decision to keep the repo unchanged at 6.5%

Debt MFs investing in quality papers and having average maturity of three-five years are good bets

As banks' chase for customers to collect cheap deposits is not fructifying, they are forced to offer inflation-beating real interest rates on fixed deposits now, and state-run banks led by Punjab & Sind Bank top the chart offering a cool 8-8.50 per cent per annum. Banks are forced to offer inflation-beating deposit rates for a tenor ranging from 200 to 800 days as credit growth has been far outpacing deposit mobilization throughout this fiscal, leading to a funding crunch. Even at the lowest 7 per cent, fixed deposit pricing is positive for customers because even after a surprise spurt in retail inflation for January at 6.52 per cent, the real rates are in the green. Inflation has been over 6 per cent for 10 months of 2022 forcing the Reserve Bank to increase rates by 250 bps to 6.50 per cent through six consecutive hikes beginning May 2022. For the fortnight to January 13, 2023, credit growth rose 16.5 per cent annualised as against 10.6 per cent growth in deposits. In fact, for .

Additionally, for FDs maturing between two and three years, the interest rates have been increased by 25 bps to 7% from 6.75%

Revisions mainly introduced for high-value deposits of Rs 2 cr and above; Continuous rate hikes over time raise concern about sustainability of healthy net interest margins

Here is how the corporate FD rates stack up

Writes to management, says bank losing deposits to other lenders

Punjab National Bank (PNB) on Tuesday increased the interest rate of fixed deposits across various tenures by 50 basis points or 0.5 per cent in a bid to attract deposits. Interest rates on term deposits below Rs 2 crore between one year and three years have been raised by 50 basis points to 6.75 per cent from earlier rate of 6.25 per cent, PNB said in a statement. The bank said that new rates of FDs are effective from January 1, 2023. It has also said that senior citizens will be getting an additional 50 basis points hike in interest rate of fixed deposits on any domestic deposit maturities which is worth less than Rs 2 crore. On PNB Uttam Scheme with no premature withdrawal option, the rate has been revised to 6.80 per cent from 6.30 per cent, it said. Apart from the revised interest rates, it said, the bank will continue to offer attractive interest rates 8.1 per annum for fixed deposit of 666 days.

Consider laddering to ensure liquidity and to avoid reinvestment risk

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Federal Bank says deposits with maturities between 18 months and two years will earn a maximum interest rate of 7.75 per cent from December 18 onwards

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Sundaram Home Finance would revise its interest rates on fixed deposits for trusts, individuals and senior citizens with effect from December 1, the company said on Tuesday. Accordingly, the city-headquartered firm, a wholly owned subsidiary of Sundaram Finance Ltd, would revise the rates by 50 basis points across trusts, individuals 7.15 per cent as against 6.65 per cent, senior citizens 7.50 per cent as against 7 per cent, on deposits for 12 months. The company, for senior citizens, would revise the interest rates to 7.50 per cent as against 7.35 per cent for tenures of 24 months, 7.80 per cent from 7.65 per cent (36 months) and 8 per cent from 7.90 per cent for 48 months. For Trusts, the interest rates have been increased to 7.15 per cent for 24 months earlier 7 per cent, 7.80 per cent as against 7.65 per cent for 36 months and 8 per cent for tenures of 48 months as against 7.90 per cent. The rates, for individuals other than senior citizens, have been increased to 7.15 per cent

Revised rates applicable on fresh deposits and renewals

Here is how the corporate FD rates offered by various companies stack up

With RBI on monetary tightening path, liquidity has shrunk and interest rates have hardened, forcing banks to hike rates on term deposits in order to get funds for credit growth

The city-based Punjab National Bank (PNB) on Friday announced a special fixed deposit scheme for 600 days, offering a higher interest rate up to 7.85 per cent per annum. This special rate of interest scheme has come to effect from October 19, 2022. "The bank is offering higher interest rates up to 7.85 per cent per annum," it said in a release. The scheme is applicable on single deposit term deposits below Rs 2 crore for senior (60 years and above) and super senior citizens (80 years and above). Bank's domestic term deposit of 600 days (callable) offers 7 per cent interest rates and 600 days (non-callable) yields 7.05 per cent per annum. Non-callable deposits are those with no option of premature withdrawal. For senior and super senior citizens, the rates range from 7.50-7.85 per cent. "Our aim is to offer the best-in-class schemes to our valuable customers and we are pleased to offer a higher interest rate to consumers so that they earn more on their saving. For further ease, o

While you may begin allocating to them, keep some powder dry as rates could rise further

Rate applicable to both fresh deposits and renewals of up to Rs 2 crore for a tenure of 600 days, seniors to get 0.5% more

For deposits maturing in the next seven days to 10 years, Axis Bank is now offering interest rates that vary from 3.5% to 6.50% for the general public and from 3.5% to 7.25% for senior persons