Meta des – Here is a comparison of the FD interest rates offered by some large banks: PNB, SBI, and ICICI Bank. There is a chance that banks will raise the FD rate soon.
On February 8, 2023, during its Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) raised the repo rate by 25 basis points (bps). While some banks take their time boosting the interest rates on fixed deposits, several banks have already increased the rates on loan lending, passing the expense on to customers.
With effect from February 15, interest rates for fixed deposits under 2 crore have increased by 5 basis points to 25 basis points at India’s largest public sector lender, State Bank of India (SBI). Additionally, the bank offered a special 400-day tenure plan with a 7.10% rate. Senior citizens benefit most since they receive a higher premium than average rates.
SBI increased FD rates from 6.75% to 7% in terms of two years to under three years, a 25 basis point increase. On tenures of three years to ten years, a further 25 bps increase was allowed, bringing the rate from 6.25% to 6.50%.
The lowest hike of 5 bps was awarded on a term of less than 2 years, going from 6.75% to 6.80%.
For FDs with tenures of less than a year, interest rates are constant. SBI is still offering 5.75% on terms of 211 days or less to less than a year, 5.25% on terms of 180 days to 210 days, 4.50% on terms of 46 days to 179 days, and a 3% rate on terms of 7 days to 45 days.
Senior Citizens’ FD rates
Similar to the general category, senior citizens’ interest rates on fixed-term deposits under Rs. 2 crore have increased for terms starting at 1 year and higher. However, compared to the general category, seniors typically receive greater interest rates on FDs.
SBI increased the FD rates for senior persons by 25 bps annually during the course of two years, from 7.25% to 7.50%. On tenure of five years or more and up to ten years, a comparable increase was made to 7.50% from the prior 7.25%. The highest interest rate that SBI has ever provided to older persons is this one.
Additionally, SBI increased rates from the prior 6.75% to 7% on 3 years to less than 5 years of tenure by another 25 basis points. The 1 year to less than 2 year rate is raised by 5 basis points to 7.30% from the previous 7.25%.
Below a one-year term, rates remain the same. An elderly person will still be paid 6.25% on tenures of 211 days or fewer, 5.75% on tenures of 180 days to 210 days, 5% on tenures of 46 days to 179 days, and 3.50% on tenures of 7 days to 45 days.
A new tenure structure
SBI has also developed a unique “400 days” tenor arrangement, under which it would begin offering a 7.10% APR on February 15. The deadline for this programme is March 31, 2023.
Currently, SBI offers a special “SBI Wecare” deposit programme for senior citizens in the retail TD segment. Under this programme, senior citizens will receive an additional premium of 50 basis points (bps) on top of the existing 50 bps, or 100 bps over the public card rate (as shown in the above table), on their retail TD for a “5 Years and Above” tenure only. The “SBI Wecare” deposit plan is still in effect till March 31, 2023.
How much interest would you earn on SBI Fixed Deposits under Rs 2 crore?
The bank increased the interest rate on deposits with maturities of one year or less to 6.80 percent from 6.75 percent, which is a 5 basis point increase for average people.
SBI increased the interest rate on loans with a term of two years or less by 25 basis points, from 6.75 percent to 7 percent. The interest rate for FDs with maturities between three and fewer than ten years has increased from 6.25 to 6.50 percent.
SBI raises the interest rates on house loans; find out how much your EMI will increase.
The State Bank of India (SBI) is the most recent bank to boost the interest rates on house loans following the Reserve Bank of India’s (RBI) 25 basis point increase to 6.50 percent in the repo rate.
With effect from February 15, 2023, SBI raised the interest rates on MCLR, EBLR, and RLLR loans.
According to the SBI website, the MCLR for one month, three months, and six months has increased from 8% to 8.10%; the MCLR for one year has increased from 8.40% to 8.50%. The MCLR is a factor in the majority of consumer loans, including auto, home, and personal loans. The two-year MCLR was increased from 8.50% to 8.60%, and the three-year MCLR was also increased from 8.60% to 8.70%
From 8.90%+CRP+BSP to 9.15%+CRP+BSP, SBI’s external benchmark-based lending rate (EBLR) increased.
From 8.50%+CRP to 8.75%+CRP, SBI Repo Linked Loan Rate (RLLR).
SBI home loan lending rates
The regular house loan interest rate has a minimum of 9.15% (EBR+0%) for consumers with credit scores of 800 or higher, according to the SBI website.
In this case, no risk premium is imposed.
For borrowers with credit scores between 750 and 799, the risk premium in this situation is 10 basis points (EBR+0.10%), translating to an interest rate of 9.25%. The interest rate is 9.35% (EBR+0.20%) with a risk premium of 20 basis points for a CIBIL score between 700 and 749.
The interest rate is 9.45% plus a risk premium of 30 basis points (EBR+0.30%) for scores between 650 and 699.
Please take note that these loans will have a 0.05% decrease for female borrowers.
SBI is extending its concession rates through March 31, 2023, it should be emphasised. When a concessional rate is used, the loan rates will be altered (lower).
Axis Bank Increases FD Interest Rates
In accordance with the RBI’s repo rate increase of 25 basis points to 6.50% on Wednesday, Axis Bank has increased interest rates on fixed deposits of less than Rs 2 crore. The new rates will take effect on February 11, 2023, according to the Axis Bank website.
The Axis Bank now offers interest rates on deposits maturing in 7 days to 10 years that vary from 3.50% to 7.00% for the general public and 6.00% to 7.75% for senior citizens as a result of the most recent increase in Fixed deposits rates.
According to the bank, fixed deposits with a maturity of two years to thirty months would give seniors a maximum return of 8.01% and non-seniors a maximum return of 7.26%.
The bank announced that it is now offering interest rates of 3.50% on fixed deposits with maturities between 7 and 45 days, and 4.00% on deposits with maturities between 46 and 60 days.
On deposits with durations ranging from 61 days to three months and three months to six months, respectively, the bank additionally offers interest rates of 4.50% and 4.75%.
Axis Bank reports that the interest rate on fixed deposits will now be 5.75% for those that mature in 6 to 9 months and 6.00% for those that mature in 9 to 12 months.
Axis Bank is currently offering an interest rate of 7.10% for fixed deposits maturing in 1 year to 1 year 24 days, and 6.75% for those maturing in 1 year to 1 year 25 days.
Current fixed deposit interest rates following the RBI rate increase: SBI vs. Yes Bank vs. PNB vs. ICICI Bank
Because fixed deposits offer safe and guaranteed returns, conservative investors frequently make them their first choice when investing, making it necessary to examine the FD rates being given by the banks. Here is a comparison of the Fixed deposits interest rates offered by a number of big institutions, including ICICI Bank and Punjab National Bank (PNB). In the foreseeable future, there is a chance that banks will raise the FD interest rate.
SBI FD Rates
For tenures ranging from seven days to ten years, SBI Fixed deposits interest rates for normal citizens range from 3% to 6.25%. The interest rate range for senior folks is between 3.5% to 7.25%. These prices are valid beginning on December 13, 2022.
ICICI Bank FD Rates
For tenures of seven days to 10 years, the interest rates for normal residents range from 3% to 7%. Senior citizen interest rates range from 3.5% to 7.50. These prices are valid from December 16, 2022.
PNB FD Rates
PNB Fixed deposits interest rates range from 3.50% to 7.25% for tenures of seven days to ten years for regular people. Interest rates are offered to senior persons in the range of 4% to 7.75%, and to super senior citizens in the range of 4.30% to 8.05%. These prices are valid beginning January 1, 2023.
Yes Bank FD rates
Yes Bank offers interest rates between 3.25% and 7% for terms ranging from seven days to ten years. Senior citizens might expect interest rates between 3.75% and 7.75%. These prices are valid from January 12, 2023.
Special tenors fixed deposits
For a 35-month term, Yes Bank offers an interest rate of 7.75% to regular people and 8.51% to senior citizens.
1. Will FD rates rise in 2023?
On February 15, 2023, the new FD interest rates took effect. For fixed deposits up to Rs 2 crore, the higher interest rates would apply. Previously, on December 13, 2022, the bank increased interest rates by up to 65 basis points across a selection of tenors.
2. Which bank raised the rate on FDs?
For all tenors, SBI increased the interest rates on fixed-term deposits by 0.50%. At HDFC Bank and Kotak Mahindra Bank, the interest rates on fixed-term deposits have increased by 0.75% and 0.25%, respectively.
3. In 2023, how much will interest rise?
There will be some relief for prospective homebuyers in 2023 after house loan rates nearly doubled in 2022. According to a prognosis made by the financial services website Bankrate, the interest rate for a 30-year fixed-rate mortgage in the United States is anticipated to decrease to 5.25% by the end of this year.
4. What is the FD’s new rule?
Since the RBI modified the FD rules, you will now receive less interest if you do not withdraw the money once the FD matures. You will receive interest that is equal to the interest earned on your savings account.