Fixed Deposits rates: These banks have hiked FD rates ahead of RBI MPC meeting next week. Check rates, tenures to invest

Several banks have floated new fixed deposit schemes and revised the earlier rates ahead of the Reserve Bank of India’s Monetary Policy Meeting to be held next week. The RBI’s MPC will start on June 5, just a day after the Lok Sabha election results would be announced. 

The experts’ committee of six members responsible for determining India’s repo rate will start their meeting on June 5 and conclude on June 7. The repo rate affects bank borrowing costs and indirectly affects loan interest rates for businesses and individuals. RBI Governor Shaktikanta Das will announce the decision at 10 am on June 7. This is the second meeting of the RBI MPC after the new financial year FY2025 started from April 1. 

So far in 2024, the central bank has kept the repo rate unchanged at 6.50 per cent after its deliberations, continuing its stance of ‘withdrawal of accommodation’. Fixed deposit rates are directly affected by the change in repo rate. An overall hike of 2.5% in the repo rate before the pause in April 2023 pushed the interest rates on fixed deposits (FD) to a new high level in the last 4-5 years. The RBI had last raised the repo rate from 6.25% to 6.5% in February 2023. Therefore, FD investors can look into investing more funds in FD schemes until RBI slashes the rate going further.  

Bank of India’s 666 days FD

Bank of India has launched a special FD plan called ‘666 Days – Fixed Deposit’. The scheme offers impressive returns on deposits as high as 7.95% per annum for super senior citizens for 666 days for deposit amount of less than Rs 2 crore. Senior citizens to get 7.8% interest per annum. General customers will get 7.3% per annum on this FD scheme.

Customers and the public can benefit from the exclusive investment opportunity by opening a ‘666 Days – Fixed Deposit,’ providing one of the highest returns on fixed deposits. This underlines the bank’s dedication to offering top-notch financial products.

The revised interest rates are applicable for domestic, NRO and NRE Rupee Term deposits which is made effective from June 1, 2024. 

Bank of India’s FD schemes offer interest rates ranging 3% to 7.67% with tenures starting from 7 days to 10 years.

The PSU bank is offering the highest interest rate of 7.67% on deposits of Rs 10 crore and above on a tenure of 1 year. On FDs worth up to Rs 2 crore of 1 year-tenure, the bank is offering an interest rate of 6.8%. The rate is 7.25% for FDs of more than Rs 2 crore but less than Rs 10 crore with a tenure of 1 year.

Indian Bank FD schemes

Indian Bank has introduced special fixed deposit schemes: Ind Supreme 300 Days and Ind Super 400 Days. The 300-day FDs offer 7.05% interest for the public, 7.55% for seniors, and 7.80% for super seniors. The 400-day FDs provide 7.25% for the public, 7.75% for seniors, and 8% for super seniors. The last date to invest in these FDs is June 30, 2024.

IDBI Bank special FDs

IDBI Bank provides special rates for Utsav fixed deposits. For 300-day maturity, general citizens get 7.05% and seniors get 7.55%. For 375 days, rates are 7.1% and 7.6% respectively. 444-day maturity offers 7.2% for general customers and 7.7% for seniors. Valid until June 30, 2024.

Punjab and Sindh Bank Fixed Deposits  

Punjab and Sindh Bank has floated special fixed deposits for various tenures. The bank offers 7.05% on FDs maturing in 222 days, 7.10% on deposits maturing in 333 days, and 7.25% on special deposits maturing in 444 days. The last date to invest in special FDs will be June 30, 2024.

SBI Sarvottam FD

Country’s largest lender State Bank of India (SBI) has revised fixed deposit interest rate on retail and bulk term deposits. The new FD rates are effective from May 15, 2024, as stated on the SBI website. In 2023, the bank had launched SBI Sarvottam term deposits. The bank has said investors will receive better interest rates than conventional fixed deposits under this FD scheme. 

SBI Sarvottam term deposits provide a 7.4% interest rate for two years and 7.10% for one year. Senior citizens receive a 50 basis points (bps) premium above the standard interest rate. Their interest rate for two-year deposits is 7.9%, while for one-year deposits, it is 7.6%.

According to the SBI website, the bank offers 30 bps over card rate for tenor 1 year and 40 bps over card rate for tenor 2 years.

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