hdfc bank fd interest rates: HDFC Bank hikes FD interest rates for these tenors

Just a day after the () hiked fixed deposit (FD) interest rates, private sector lender announced that it too has increased FD rates on various fixed deposit tenors of less than Rs.2 crore. According to the HDFC Bank website, FD rates have been raised by up to 25 basis points. According to the website, the higher interest rates are effective from June 15, 2022.

According to the HDFC Bank website, from 6 months to less than 9 months FD will now earn 4.65 percent, up from 4.40 percent. For tenor 9 months to less than one year will earn 4.65 percent, up from 4.50 percent, and 1 year to 2 years FDs will earn 5.35 percent, up from 5.10 percent.

Latest HDFC Bank FD interest rates

Source: HDFC Bank website

The other FD tenor interest rates remain unchanged. Seniors citizens will continue to earn an additional 50 bps interest on FDs over what general investors earn.

It is emphasized that the interest rate applicable to numerous deposits made by the same customer in a single day across all channels in one particular tenor bucket would be the rate applicable to the aggregate value, stated the HDFC Bank website.

These 5 banks offer highest interest rates on 3-year FDs

Investing in an FD

A fixed deposit (FD) allows you to put money aside for a specific amount of time (tenure) and earn a predetermined rate of interest. A fixed deposit often earns a greater interest rate than a conventional savings account until the term ends.

Fixed deposit interest rates vary depending on the tenor of the FD. Some banks charge a penalty for breaking the FD midway, so it is best to create an FD ladder and make best use of it.

As a result, FD investors should double-check the tenure and interest rate that best meets their needs. Here are banks offering best interest rates in 3 year fixed deposits.

The bank has also revised benchmark PLR – 16.55% p.a. with effect from June 17, 2022.

Most banks hike FD rates

The Reserve Bank of India (RBI) hiked the repo rates by 50 basis points in its monetary policy meet on June 8, 2022. That brings the total rate hike by the central bank to 90 bps in a little more than a month. More banks are expected to hike FD rates in the coming months, which is good news for FD investors.

These banks offer highest interest rates on 5-year FDs

What is an FD?

A fixed deposit, often known as an FD, is a type of investment instrument offered by banks and non-banking financial institutions (NBFCs). You invest for a certain period of time and receive a fixed interest rate with FDs also, you will receive fixed returns regardless of how interest rates fluctuate or how the economy performs at the time of investing.

How to create an FD ladder

Making an FD ladder is an option as it helps you to break a big deposit into many parts and book each part after a time gap so that you get the average return and periodic liquidity when there is volatility in the interest rate. However, choosing the right tenure and frequency of deposit is important. In a rising rate scenario keeping the tenure and gap between deposits low is the key so that the deposit gets the benefit of growing rates quickly at the time of maturity. These can be gradually increased to complete a stable ladder.

Create an FD ladder to maximise returns from rising interest rates

Create an FD ladder to maximise returns from rising interest rates

For instance, if you have Rs.10 lakh you can make the first FD of Rs.2.5 lakh for six months, then a second FD of Rs. 2.5 lakh for 9 months and so on. Once your first FD matures you can increase the tenure to 2 years and after that once the second FD matures you can keep the tenure 2 years 3 months and so on. Once these FDs start maturing you increase the tenure to 3 years and increase the gap between the two FDs to 9 months

Also read:
SBI hikes FD interest rates by up to 20 bps for these tenors

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