In December 2023, various banks in India raised their fixed deposit interest rates, bringing positive news for savers. Among the seven banks that implemented these increases are Bank of Baroda, State Bank of India (SBI), Union Bank of India, DCB Bank, Kotak Mahindra Bank, Federal Bank, and Bank of India.
Bank of Baroda:
Bank of Baroda elevated interest rates on retail term deposits by 10 to 125 basis points on different maturity buckets. These new rates apply to deposits below ₹2 crore, offering a range of 4.25% to 7.25% for general customers. Senior citizens can enjoy rates between 4.75% and 7.75% for deposits maturing in seven days to ten years.
State Bank of India (SBI):
SBI also increased its fixed deposit rates for deposits below ₹2 crore, effective from December 27, 2023. The rates now range from 3.5% to 7% for deposits maturing in seven days to ten years. Senior citizens receive an additional 50 basis points on these deposits.
Union Bank of India:
Union Bank of India raised interest rates by up to 25 basis points on fixed deposits below ₹2 crore, applicable from December 27. The new rates range from 3% to 7.25% for deposits maturing in seven days to ten years.
DCB Bank:
DCB Bank hiked fixed deposit rates for select tenors below ₹2 crore, offering the highest FD interest rate of 8% for general customers and 8.60% for senior citizens. The rates now vary from 3.75% to 8% for general customers and 4.25% to 8.60% for senior citizens, maturing in seven days to ten years.
Kotak Mahindra Bank:
Kotak Mahindra Bank increased interest rates on tenors ranging from three to five years. Post the revision, the rates for general customers range from 2.75% to 7.25%, and for senior citizens, it is 3.35% to 7.80%, effective from December 11, 2023.
Federal Bank:
Federal Bank adjusted its deposit interest rates from December 5, 2023. For both residents and non-residents, the bank raised the interest rate to 7.50% for a 500-day tenure. Senior citizens can now enjoy a maximum return of 8.15% for a 500-day tenure and 7.80% for tenures beyond 21 months to less than three years.
Bank of India:
Bank of India increased fixed deposit rates for customers and the general public with effect from December 1, 2023. The rates now vary for different tenures, starting from 5.25% for “46 days to 90 days” to 7.25% for a “1 Year” tenure.
These rate hikes come as good news for those looking to earn higher returns on their fixed deposits.
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