Housing Development Finance Corporation (HDFC) has cut its deposit rates by 25 to 55 basis points accross maturities. This follows the recent spate of cuts by the banking sector on their fixed deposit rates.
On renewal of existing deposits and on all fresh deposits, deposit holders will receive an annualised yield of 7.55 per cent against 7.8 per cent on deposits of one to two years.
For deposits of over two years to three years, the revised yield stands at 7.8 per cent (8.05 per cent). The yield on longer term deposits with a maturity of three to seven years has been drastically revised downwards from 8.6 per cent to 8.05 per cent, reflecting a fall of 55 basis points.
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State Bank of India (SBI) was the first bank in the country to cut interest rates on domestic term deposits of various maturities by 25 to 50 basis points. The rate cut was effected by the bank as the rate of return on surplus liquidity that was deployed in the money market was less than the cost of deposits. Immediately thereafter, Bank of Baroda announced a rate cut of a similar quantum.
Bank of India revised interest rates payable on domestic with effect from July 29. Interest on domestic term deposits (irrespective of the deposit amount) in the 15-90 days maturity bucket is 5.75 per cent; 91-364 days : 6.50 pc; one year to less than three years: 7.25 pc; and deposits over three years : 8 pc. In the case of deposits having a tenor of 7-14 days, where the minimum deposit has to be Rs 15 lakhs, the interest rate is five per cent.
Central Bank of India decided to revise its domestic term deposit rates downward by 25 basis points for select slabs with effect from August 1. For deposits in the 180 days to less than one year maturity bucket, the new rate will be 6.25 per cent as against 6.50 per cent now; one year to less than two years : seven per cent (7.25 per cent now); two years to less than three years : 7.25 per cent (7.50 per cent); and three years & above : 7.50 per cent (eight per cent).