FD: ICICI Bank has increased the interest rates on FDs by 15 to 25 basis points, while IDBI Bank has increased it by 5 to 10 basis points.
FD: At a time when many banks are cutting interest rates, two big private sector banks ICICI and IDBI have increased interest rates for short-term fixed deposits (FDs).
IDBI Bank has increased interest rates by 5 to 10 basis points on deposits below Rs 2 crore. At the same time, ICICI Bank has increased the rates by 15 to 25 basis points on FDs between Rs 2 crore and Rs 5 crore.
The revised rates of IDBI Bank have come into effect from July 14, 2021. At the same time, the benefit of ICICI Bank rates is available from July 15. The last time a big bank raised FD interest rates was on January 8.
State Bank of India (SBI) had increased 10 basis points on FDs of tenure of 1 year or more but less than 2 years. In this way, the interest rates for common citizens on FDs with this duration were increased from 4.90 percent to 5 percent.
There was a continuous fall in interest rates
In the last few months, many private and public sector banks including HDFC Bank, Bank of India, IndusInd Bank and Bandhan Bank have cut interest rates on FDs.
SBI also cut rates in September 2020. Similarly, in June 2020, ICICI Bank had cut its FD rates. Even some small finance banks have reduced interest rates.
FD Rates of ICICI Bank
According to ICICI Bank’s website, it is offering 2.50% to 4.40% interest rate to the general public for FDs between Rs 2 crore and Rs 5 crore with a tenure of seven days to 10 years.
How much increase
The periods for which the enhanced rates are applicable are 91 days to 184 days and one year to 18 months. Now ICICI Bank is giving 3.25% interest on FDs ranging from 91 days to 184 days. This is 0.25% higher than the earlier rate.
Along with this, customers will get 0.15% more interest on FD from one year to 18 months. The new interest rate is 3.90% p.a.
IDBI Bank FD Rates
IDBI Bank has also revised FD interest rates. After the amendment, now the FD interest rates on deposits less than Rs 2 crore have gone up from 2.70% to 5.30% for tenors between 7 days to 20 years.
How much increase
IDBI Bank is offering five per cent interest on deposits for a period of one year and 5.10% on deposits for a period between one year and two years.
This is 0.10% more than before. The new interest rate for FDs between three and five years is 5.30 per cent (+0.05%), which is the highest.
What are the interest rates for senior citizens
Apart from all this, IDBI Bank offers 50 basis points or 0.50 per cent higher interest rate on FDs for senior citizens as compared to normal customers. Now, the interest rates for senior citizens are 3.20% to 5.80%.