Yes Bank has increased its fixed deposit (FD) rates by 25 basis points (bps) to 50 bps on different categories. The hike in deposit rates is applicable for FDs below Rs 2 crore with an initial maturity of less than 36 months.
HDFC Bank has also hiked the deposit rate for FDs in the 15-18 month tenure.
The hike in deposit rates by both banks are effective from February 21, 2023. Senior citizens will benefit most from the hike, since they enjoy an additional rate on FDs.
New Deposit Rates At Yes Bank
The rate of interest for tenures of 181 days to 270 days has increased to 6 per cent from 5.75 per cent. The 25 bps increase is also applicable on tenures of 272 days to less than one year, as well as those on one year to less than 15 months. Senior citizens will receive 25 bps premium over general deposits for these tenures.
For general deposits with tenures of 15 months to less than 36 months, the rate of interest was increased by 50 basis points to 7.50 per cent. Seniors will receive an additional 0.50 per cent extra on their deposits.
Interest rates for the rest of the tenure remains the same as following: Deposits maturing between seven days and 14 days will continue to earn an interest rate of 3.25 per cent. The bank will offer an interest rate of 3.7 per cent on FDs maturing between 15 days and 45 days.
The interest rate on FDs maturing between 46 days and 90 days will be 4.1 per cent, while those on deposits between 91 days and 180 days will be 4.75 per cent. For deposits between 12 months and 36 months, the new deposit rate will be seven per cent.
New Deposit Rates At HDFC Bank
HDFC Bank has increased the deposit rate on FDs with a 15-18 month tenure from seven per cent to 7.10 per cent. For this tenure, seniors will receive a 50-basis point premium, resulting in an interest rate of 7.6 per cent.
The deposit rate for other tenures remains unchanged.
HDFC Bank is also offering a Special We Care deposit to senior citizens with 7.75 per cent rate of interest for a tenure of 5 years 1 day to 10 years.
Highest Deposit Rates Offered By Large Banks
A number of banks, including the country’s largest bank, the State Bank of India, as well as Punjab National Bank (PNB), among others, have raised their deposit rates in response to the Reserve Bank of India (RBI) increasing the repo rate. Yes Bank made the highest hike in rate for the 15–36-month
tenure, eclipsing HDFC Bank, SBI, and PNB. General deposit interest rate at Yes Bank is 7.5 per cent for this tenure, while senior citizen deposits will earn 8 per cent return.
In the three-year to ten-year tenure, HDFC Bank and Yes Bank are offering a deposit rate of 7 per cent, while SBI is offering 6.5 per cent.