Last Update: January 10, 2023, 13:07 IST
According to some economists, RBI may propose or legislate another hike in February 2023.
India’s annual retail price inflation declined from 6.77% in October 2022 to 5.88% in November 2022, the lowest figure since December last year.
Reserve Bank of India To control inflation, the repo rate has been increased recently. The repo rate has been increased for the fifth consecutive time since May 22. After this, the interest rates offered by banks on fixed deposits have been changed. In May FY22, the repo rate was increased by 0.35% to 6.25% from 5.9% during its monetary policy meeting held in December.
In an effort to fight inflation, the RBI has increased the repo rate by 225 basis points to 6.25% since May. India’s annual retail price inflation declined from 6.77% in October 2022 to 5.88% in November 2022, the lowest figure since December last year. The sharp rise in interest rates, led by the sixth consecutive increase in the repo rate, has cheered investors in fixed deposit products.
According to some economists, RBI may propose or enact another hike in February 2023. Interest rates for fixed deposits under Rs. 2 crore, however, will increase in the first week of January 2023, as per some institutes. Let’s check out the full list now.
Punjab National Bank
On January 1, Punjab National Bank (PNB) announced an increase in interest rates for savings accounts and fixed deposits. For the balance amount of Rs. 100 crore or more, PNB increased the interest rate on savings accounts by 25 basis points, while the bank increased the interest rate on fixed deposits by up to 50 basis points.
Indian Overseas Bank
Indian Overseas Bank (IOB) had said on January 1 that the FD interest rate on short-term deposits with a tenor of 7 to 90 days would be increased by 75 basis points. For deposits with a maturity period of 444 days, the bank now offers a maximum interest rate of 6.55% to the general public; However, the additional rates for senior citizens and very senior citizens (aged 80 years and above) continue to be 0.50% and 0.75%, respectively.
Punjab And Sind Bank
Punjab and Sind Bank announced an increase in the interest rate for fixed deposits on January 1. Unlike Punjab & Sind Bank, which offers a maximum interest rate of only 7% on a tenure of 601 days, the bank currently offers interest rate on deposits. From 2.80% to 6.25% for maturity period of 7 days to 10 years.
Bandhan Bank
On January 5, 2023, Bandhan Bank increased the interest rate on fixed deposits. The bank now offers interest rates for deposits maturing in 7 days to 10 years in the range of 3.75% to 6.60% for senior citizens and 3.00% to 5.85% for non-senior citizens. The bank gives the maximum interest rate on deposits with a tenure of 600 days (one year, seven months and twenty two days).
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