Bandhan Bank now offers an interest rate of up to 8.5 per cent on FDs to senior citizens

Bandhan Bank has announced an increase in the interest rates offered on its fixed deposits (FDs). The revised rates came into effect from 6 February 2023. The lender is now offering an interest rate of up to 8.5 percent to senior citizens and up to 8 percent to general citizens on FDs with a maturity period of 600 days. The enhanced FD rates are applicable for retail deposits up to a maximum of Rs 2 crore. Banks continue to increase FD rates India since last year. This comes after the recent repo rate hike by the Reserve Bank of India (RBI) on 7th December 2022. RBI increased the repo rate by 35 basis points (bps) in an effort to control inflation.

Bandhan Bank

Bandhan Bank is now paying interest rates between 3-8 per cent for regular citizens on its FDs for tenures between 7 days to 10 years. On the other hand, senior citizens are being offered 3.75-8.5 per cent for the same tenure. FD rates have been increased by 25-50 bps depending on the maturity period.

People’s Small Finance Bank

Other banks like Jana Small Finance Bank (SFB) have also hiked their FD rates. Jana SFB hiked its interest rates on FD deposits of less than Rs 2 crore on February 1. The bank is now paying up to 8.1 per cent interest on deposits maturing in 2 to 3 years. Senior citizens will be able to earn 8.8 percent interest on FDs of the same tenure.

RBI’s monetary policy committee meeting

The three-day meeting of the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das began on Monday. The meeting is being held amid anticipation of a smaller hike of 25 basis points or a pause in the rate-hike cycle that began in May last year. The decision of the six-member rate-setting panel is being notified by Shaktikanta Das on Wednesday. If the RBI announces an increase in the repo rate, banks will again be prompted to increase the interest on their FDs.

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