ICICI Bank, IDBI Bank hike fixed deposit interest rates

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Swimming against the tide of declining rates, ICICI Bank and IDBI Bank, two major private sector banks, have hiked interest rates on fixed deposits of a few tenures. IDBI Bank hiked interest rates by 5-10 basis points on deposits of less than Rs 2. ICICI Bank hiked rates by 15 to 25 basis points on FDs between Rs 2 crore and Rs 5 crore. While the revised rates of IDBI Bank came into effect from July 14, 2021, the benefit of the rates of ICICI Bank was available from July 15. The last time a major bank raised FD interest rates was on January 8, when State Bank of India pushed it up by 10 basis points from 4.9% to 5% on FD of tenure between 1 year to less than 2 years.

Falling rates

In the past several months many private and public sector banks including HDFC Bank, Bank of India, IndusInd Bank and Bandhan Bank, lowered interest rates on fixed deposits. In September 2020, SBI lowered rates too. In June 2020, ICICI Bank reduced FD rates.

Even a few small finance banks, which generally offer higher interest than scheduled commercial banks, also lowered interest rates.

ICICI Bank FD rates

After the latest revision, ICICI Bank is offering 2.50% to 4.40% interest rate of term deposits of Rs 2 crore and above up to Rs 5 crore for the tenure of 7 days to 10 years for general public.

The tenures for which the increased rates are applicable are 91 days to 184 days and one year to 18 months. Now ICICI Bank is offering 3.25% interest on FD’s ranging from 91 days to 184 days. It is 0.25% higher than the earlier rate.

Also, customers will get 0.15% more interest on FDs for one year to 18 months. The new interest rate is 3.90% per annum.

IDBI Bank FD rates

IDBI Bank also revised fixed deposit interest rates. After the latest revision, FD interest rates on less than Rs 2 crore deposits range from 2.70% to 5.30% for tenures between 7 days to 20 years.

For deposits maturing in one year and between one year to two years, IDBI Bank now offers 5% and 5.10% interest respectively, which is 0.10% more than before. The new interest rate for three to less than five years FD is 5.30% (+0.05%), which is the highest offered by the bank.

For senior citizens

Besides this hike, IDBI Bank, following the unwritten norm, offers special additional interest rate of 50 basis points or 0.50 percentage point more than general customers on FDs for senior citizens. Now, the interest rates for senior citizens vary from 3.20% to 5.80%.