Joining the list of banks that have hiked fixed deposit (FD) interest rates this week is ICICI Bank. According to the ICICI Bank website, FD interest rates on amounts below Rs 2 crore have been increased effective from June 16, 2022. now offers an interest rate between 2.75 percent to 5.75 percent for tenors from 7 days to 10 years.
Term deposits with a maturity of 185 to less than one year now pay 4.60 percent, while those with a maturity of one year to two years will fetch 5.30 percent interest. ICICI Bank will now offer a 5.50 percent interest rate on two-year and one-day to three-year fixed deposits, and a 5.70 percent interest rate on three-year, one-day to five-year fixed deposits. For tenor five years one day to ten years, the interest rate offered is 5.75 percent.
ICICI Bank Golden Years FD interest rates
The Golden Years FD is an ICICI Bank term deposit scheme for senior citizens. Over and above the existing additional rate of 0.50 percent per year, resident senior citizen clients will receive an additional interest rate of 0.25 percent for a limited period.
FD tenure: 5 years 1 day up to 10 years
Scheme Period: Valid up to October 7th , 2022
Applicable on single FD of amount
SBI vs HDFC Bank Vs ICICI Bank: Which bank is offering highest FD interest rate
Banks hike FD interest rates
Lenders in the private and public sectors have been fast to raise interest rates on a variety of loan terms, and fixed deposits after the Reserve Bank of India (RBI) hiked repo rates twice in the last one month.
While increasing loan EMIs would put a dent in the borrowers’ pockets, those who have invested in bank fixed deposits will see their interest rates rise.
SBI hikes FD interest rates
According to SBI’s website, the bank has raised the interest rate on FDs with terms ranging from 211 days to less than a year by 20 basis points to 4.60 percent. For 1 year to less than 2 years, the interest rate offered has been hiked to 5.30 percent from 5.10 percent. And the interest rate has been raised by 15 basis points on 2 years to less than 3 years tenor FDs to 5.35 percent from 5.20 percent.
For all tenors, the rate for all Senior Citizens and SBI Pensioners aged 60 and over will be 0.50 percent more than the rate for resident Indian senior citizens.
HDFC Bank FD interest rates
HDFC Bank, a private sector lender, has increased FD rates on different fixed deposit tenors of less than Rs.2 crore. FD rates have been raised by up to 25 basis points, according to the HDFC Bank website. The new interest rates will take effect on 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.
ICICI Bank FD interest rate
According to the ICICI Bank website, FD interest rates on amounts below Rs 2 crore have been increased effective from June 16, 2022. ICICI Bank now offers an interest rate between 2.75 percent to 5.75 percent for tenors from 7 days to 10 years.
Term deposits with a maturity of 185 to less than one year now pay 4.60 percent, while those with a maturity of one year to two years will fetch 5.30 percent interest. ICICI Bank will now offer a 5.50 percent interest rate on two-year and one-day to three-year fixed deposits, and a 5.70 percent interest rate on three-year, one-day to five-year fixed deposits. For tenor five years one day to ten years, the interest rate offered is 5.75 percent.
How to create an FD ladder to maximise returns?
Making an FD ladder is a best alternative since it allows you to split a large deposit into multiple parts and book each part after a period of time to get the average return and periodic liquidity when interest rates are volatile. It is, however, critical to select the appropriate deposit tenure and frequency. In a rising rate environment, maintaining the tenure and gap between deposits short is critical to ensuring that the deposit reaps the benefits of rising rates at maturity. To complete a stable ladder, progressively increase these.
