Move fixed deposits only if the rate difference is high. Here's why

With banks signalling a rise in rates, it is good news for the depositor

Since the last few months, interest rates have been going up. The country’s largest bank, State Bank of India, signalled this rise as early as in February by increasing both its deposit and lending rates. ICICI Bank and Punjab National Bank followed SBI's move. Now, HDFC Banks has also decided to raise deposit rates by as much as 100 basis points. 

At present, SBI’s deposit rate for one year stands at 6.40 per cent whereas HDFC Bank is at 6.85 per cent. And between three years and five years, SBI is offering 6.7 per cent whereas HDFC Bank is offering