HDFC Bank hikes FD interest rates for the second time this week

Talk about good times, HDFC Bank has, for the second time this week, increased fixed deposit (FD) interest rates. The bank has hiked FD rates by up to 25 basis points, and the new interest rates are effective from June 17, 2022. These rates are applicable for FD amounts less than Rs 2 crore.

According to the

website, from 7 days to 29 days FD will now earn 2.75 percent, up from 2.50 percent. For tenor 30 days to 90 days, the bank will now offer 3.25 percent, up from 3 percent.

For tenure 91 days to 6 months FDs will earn 3.75 percent, up from 3.50 percent, and 1 year to 2 years FDs will earn 5.35 percent, up from 5.10 percent.

Now the interest rate offered on 2 years 1 day to 3 years is 5.50 percent from earlier 5.40 percent. The interest rate is increased to 5.70 percent for deposit tenure 3 years 1 day- 5 years from 5.60 percent.

HDFC Bank latest FD interest rates

On June 15, 2022, HDFC Bank had hiked FD interest rates for select tenors by up to 25 bps. 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.

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.

Possibility of interest on FDs rising to 8% in next 1-2 years

8% interest is considered to be a decent return by a good number of FD investors. So how likely is the possibility of deposit rates reaching that level? “There is no doubt that the interest rate on deposits will increase. We expect it to increase by 100 to 150 bps in the coming two to three quarters. The rates are expected to come back to pre-Covid days in this period. While it is not easy to say it can increase to 8% in the coming year or so. The last time such a rise has happened in 2010 to 2012 after the Lehman Crisis,” Harshad Chetanwala, founder, My Wealth Growth, a wealth management company based in Mumbai. The current situation is also extraordinary in many ways due to the Covid-19 pandemic related liquidity infusion and hyperinflation led by the Russia-Ukraine war. So, the FD interest rates touching the 8% mark is a possibility.

Also read:
HDFC Bank revises recurring deposit interest rates: Check latest RD rates

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