One day to three years will continue to earn 5.5% for two years. The lender’s website says that FDs with maturities of one to two years will now earn 5.5% interest – an increase of 15 basis points. HDFC Bank has increased fixed deposit (FD) rates by 40 basis points. As a result, banks have been trying to consolidate their deposit bases. However, deposits in the banking system increased by 9.1% yearly, a slowdown in growth.
Non-food credit rose 14.5% year over year in the two weeks ending July 29. While the increase may boost returns for savers, interest rates are still well below stock market rates, especially since the interest earned is taxable.Īs business activity resumes, loan growth has been trending upward over the past few months. While HDFC Bank raised rates by up to 40 basis points for various maturities, PNB raised rates for term deposits with maturities of 1 to 3 years, five years and above, and up to 10 years. Banks continued to raise fixed deposit rates on Thursday, including HDFC Bank and Punjab National Bank (PNB).
