HDFC Bank hikes fixed deposit rates on select tenues: All you need to know

After the State Bank of India (SBI), HDFC Bank has raised its fixed deposit (FD) interest rates for deposits under Rs 2 crore. These new rates are effective from today, June 10, 2024.

 

General customer rates

 

For its general customers, HDFC Bank now offers interest rates that range from 3% to 7.25%, depending on the tenure of the deposit, which can span from 7 days to 10 years.

 

Short-term deposits: Deposits maturing between 7 and 29 days will earn an interest rate of 3%. For those maturing between 30 and 45 days, the rate is set at 3.50%. Deposits maturing between 46 days and less than six months will now yield 4.50%.

 

 

Medium-term deposits: For deposits maturing between six months and one day and less than nine months, the bank offers an interest rate of 5.75%. Those maturing between nine months and one day and less than a year will receive a 6% interest rate.

 

Long-term deposits: Deposits maturing between one year and less than 15 months will earn 6.60%. For deposits maturing between 15 months and less than 18 months, the rate is 7.10%. The highest rate, 7.25%, is available for deposits maturing between 18 months and less than 21 months.

 

Adjusted rates for longer tenures

 

HDFC Bank has also adjusted rates for longer-term fixed deposits:

 

21 months to less than 3 years: Deposits in this category will now earn a 7% interest rate.

 

2 years 11 months to less than 3 years: Interest rates have been raised to 7.15%.

 

3 Years 1 day to less than 4 years 7 months: The rate has increased to 7.20%.

 

4 years 7 months 1 day to less Than 5 years: These deposits will also earn a 7.20% interest rate.

 

5 years 1 day to 10 years: Deposits in this range will yield a 7% interest rate.

 

Special rates for senior citizens

 

HDFC Bank offers slightly higher interest rates for senior citizens, ranging from 3.5% to 7.75%, based on tenure. The peak interest rate for senior citizens is 7.75% for deposits maturing between 18 months and less than 21 months.

 

Recurring deposit rates

 

The bank has also revised its recurring deposit rates:

27 and 36 Months: General citizens will earn 7.15%, while senior citizens will earn 7.65%.

39, 48, and 60 Months: General citizens will receive an interest rate of 7.20%, and senior citizens will receive 7.70%.

 

FDs, though low-risk, can offer attractive returns depending on the interest rates. You can book fixed deposits from various issuers, including:

 

Bajaj Finance Ltd

Maximum interest rate: 8.85% p.a.

Minimum deposit: Rs 15,000

 

Mahindra Finance Ltd

Maximum interest rate: 8.35% p.a.

Minimum deposit: Rs 5,000

 

PNB Housing Finance Ltd

Maximum interest rate: 7.95% p.a.

Minimum deposit: Rs 10,000

 

Shriram Finance Ltd

Maximum interest rate: 8.97% p.a.

Minimum deposit: Rs 5,000

 

Ujjivan Small Finance Bank

Maximum interest rate: 9.00% p.a.

Minimum deposit: Rs 1,000

 

YES Bank

Maximum interest rate: 8.50% p.a.

Minimum deposit: Rs 10,000
 

SBI FD interest rates

 

State Bank of India (SBI) has recently increased its FD interest rates:

 

— For deposits maturing between 46 days and 179 days, the rate has risen from 4.75% to 5.50%.

 

— For senior citizens, the rate for the same tenure has increased from 5.25% to 6%.

 

— For tenures of 180 days to 210 days, the rate for general citizens has been raised by 25 basis points (bps) from 5.75% to 6%.

 

— For tenures of 211 days to less than one year, the rate for general citizens has gone up from 6% to 6.25%, and for senior citizens, from 6.50% to 6.75%.

 

— The highest interest rate of 7.10% remains unchanged.

 

Factors to consider when booking an FD

 

According to Bajaj Finance, these are key factors to consider:

 

Interest rate: Compare rates offered by different issuers The marketplace allows easy browsing and comparison of FD rates.

 

Tenor: FDs come in various tenors, from a few days to several years Choose a tenor that aligns with your financial goals.

 

Minimum deposit: With minimum deposit requirements ranging from Rs 1,000 to Rs 15,000, FDs are accessible to a broad range of investors

 

Features: Some FDs offer additional features like auto-renewal for continuous growth and loan against FD for liquidity needs.

 

Amar Ranu, Head of Investment Products & Insights at Anand Rathi Shares and Stock Brokers, advises, “Building a portfolio that includes some less-risky assets can help you ride out market volatility.”