In terms of interest rates, small financing banks (SFBs) provide customers with attractive rates.
Digital Desk: Banks have
started raising interest rates on fixed deposits (FDs) and savings accounts
since May 2022, after consecutive repo rate hikes by the Reserve Bank of India
(RBI). Among the lenders that have recently raised interest rates on term deposits
are the State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, Kotak
Mahindra Bank, IDFC First Bank, and RBL Bank. In terms of interest rates, small
financing banks (SFBs) provide customers with attractive rates.
On some deposits, IDFC First
Bank, RBL Bank, Union Bank of India, and Canara Bank provide interest rates of
more than 7% to general consumers.
IDFC First Bank
IDFC First Bank provides FDs
with terms ranging from 7 days to 10 years. Senior citizens receive an
additional 50 basis points (bps) on these deposits. For 750-day fixed deposits,
the bank provides 7.25% to general clients and 7.75% to senior citizens.
RBL Bank
RBL Bank offers 7% interest
on 15-month FDs to ordinary consumers. Senior citizens will receive a 7.50%
rate during this tenure.
Union Bank of India
Union Bank of India is one
of the government banks that has increased interest rates on FDs under 2 crore
with effect from October 17. Following the latest increase, the bank now
provides interest rates ranging from 3% to 7% on FDs with maturities ranging
from 7 days to 10 years.
Canara Bank
Canara Bank has introduced a
new 666-day fixed deposit scheme. According to this plan, the lender will pay
7% interest on deposits made by ordinary consumers and 7.5% interest on deposits
made by older persons.
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