In an era where securing and maximizing returns on savings is paramount, Fixed Deposit (FD) schemes remain a preferred choice for many, offering a blend of safety and attractive returns. This preference has been further reinforced as several banks in India, including the market giant HDFC Bank, have revised their FD rates upwards, particularly in response to consecutive increases in the Repo Rate by the Reserve Bank of India (RBI) aimed at curbing inflation.
HDFC Bank Leads with Rate Hikes
HDFC Bank, recognized as the country’s largest bank by market value, has made a significant move by increasing the interest rates on bulk FDs, those ranging between 2 to 5 crore rupees. This adjustment caters to the bank’s strategy to offer competitive returns to its depositors, ensuring their investments grow amidst the fluctuating economic environment. Since February 3, 2024,
HDFC Bank has been offering revised rates across various tenures, notably enhancing the interest rate for FDs ranging from one year to 15 months, now at 7.40% for general customers and an appealing 7.90% for senior citizens.
Banks Offering Over 9% Interest
Several banks have not only matched but exceeded expectations by offering interest rates surpassing 9% in February. This move is aimed at attracting more depositors, especially senior citizens, who are often in search of safer investment avenues with higher returns.
Unity Small Finance Bank’s Competitive Offer
Unity Small Finance Bank stands out by revising its FD rates on February 2, 2024, now offering up to 9.50% interest on 1001-day deposits for senior citizens. This is among the highest rates available, showcasing the bank’s commitment to providing value to its senior clientele. Additionally, for other tenures, the bank offers rates as high as 9.25%, demonstrating its competitive edge in the FD market.
Other Banks Join the Fray
Punjab & Sindh Bank and Karur Vysya Bank (KVB) have also updated their FD rates, offering attractive returns to senior citizens. Punjab & Sindh Bank, for instance, is offering up to 8.10% interest on 444-day FDs until March 31, 2024, while KVB is providing a maximum of 8.00% on similar tenures.
PNB’s Revised Rates
Punjab National Bank (PNB) has made adjustments to its FD rates in February, with senior citizens now eligible for up to 7.75% interest on 400-day FDs. This revision reflects the bank’s strategy to remain competitive and appealing to a broad customer base, including senior citizens who are looking for reliable investment options.
| Bank Name | FD Tenure | Interest Rate for General Customers | Interest Rate for Senior Citizens | Effective Date |
|---|---|---|---|---|
| HDFC Bank | 1 year – 15 months | 7.40% | 7.90% | Feb 3, 2024 |
| Unity Small Finance Bank | 1001 days | Up to 9.50% | Up to 9.50% | Feb 2, 2024 |
| Punjab & Sindh Bank | 444 days | Up to 8.10% | Up to 8.10% | Feb 1, 2024 |
| Karur Vysya Bank (KVB) | 444 days | Up to 8.00% | Up to 8.00% | Feb 1, 2024 |
| Punjab National Bank (PNB) | 400 days | Up to 7.75% | Up to 7.75% | Feb 1, 2024 |