Home loan became expensive after the repo rate hike, but those who put money in fixed deposits (FD) became silver. Banks started increasing the interest rate of home loan on one hand and on the other they started increasing the rate of FD.
This has increased the returns on FD. In the midst of high inflation, people have got some relief. Recently, many banks including SBI, Axis Bank, Federal Bank, HDFC Bank and ICICI Bank have increased the FD rate.
Latest FD rate of these 10 banks: FD rate of State Bank of India (SBI) is 2.90 to 5.50 percent on normal account, whereas, for senior citizens this rate is 3.40 to 6.30 percent. At the same time, interest of 2.50 to 5.60 percent is being available on HDFC Bank FD on normal deposits, while for senior citizens this rate is 3.40 to 6.30 percent. Punjab National Bank (PNB) is offering interest from 3.00 to 5.25 percent on the general account and 3.50 to 5.75 percent on the account of senior citizens.
Which bank is getting how much return: Canara Bank is giving 2.90 to 5.75 percent interest on normal FD and 2.90 to 6.25 percent for senior citizens. Axis Bank is offering 2.50 to 5.75 per cent to general depositors and 2.50 to 6.50 per cent to senior citizens on its FDs. Bank of Baroda is offering 2.80 to 5.35 percent interest on FDs to general depositors and 3.30 to 6.35 percent to senior citizens. On IDFC Bank FD, interest is getting from 2.85 to 5.20 percent on normal account and 3.35 to 5.95 percent for senior citizens. Similarly, Punjab and Sind Bank is giving 3.00 to 5.40 percent interest on its FDs to general depositors and 3.50 to 5.90 percent to senior citizens.
Recent Growth of HDFC Bank : HDFC Bank’s name is in the most recent growth. The new rates have come into effect for FDs with tenor of more than nine months. HDFC Bank’s new FD interest rate hike ranges between 10 to 20 basis points depending on the tenure. In this, senior citizens get 0.50 percent additional return. The bank has said on its website that HDFC Bank’s FD interest rate hike has come into effect from May 18, 2022 and is applicable on deposits below Rs 2 crore.
Earlier, ICICI Bank, Federal Bank, State Bank and Axis Bank have also increased FD rates significantly. Just a few days ago, the Reserve Bank suddenly increased the repo rate by 40 basis points. After this hike, banks started increasing home loan rates. Along with this, the rate of FD has also started increasing. Home loan becomes very expensive due to increase in repo rate whereas FD also gives higher returns.
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