Indian Bank has updated its fixed deposit (FD) interest rate after the Reserve Bank of India's repo rate hike earlier this month. The RBI increased the repo rate by 25 basis points from 5.25% to 5.50% on October 7.
The central bank's repo rate hike had raised expectations of several banks increasing their FD interest rates as well.
Indian Bank Updates FD Interest Rate
Indian Bank raised the interest rates on two of its special FD schemes by 15 basis points each, effective from October 23. The new rates apply to the bank's 555-day Ind Grow and 777-day Ind Prosper deposits.
The interest rate on the 555-day Ind Grow deposit has increased from 6.65% to 6.80% per annum. Similarly, the rate on the 777-day Ind Prosper scheme has been raised from 6.60% to 6.75%.
While some banks may update their FD rates within days of the RBI's repo rate change, others may take a few weeks to make a decision.
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Top Bank FD Offers In October
FDs offer investors a chance to earn a stable return on their deposits. In the month of October, here are the top offers by banks.
HDFC Bank offers a maximum of 6.50% interest per annum for FDs with tenures ranging from three years and one day to less than four years and seven months.
The State Bank of India is giving customers a chance to earn up to 6.45% interest on FDs lasting from two years to less than three years.
Both banks have not yet updated their FD interest rates after the RBI's repo rate hike.
Axis Bank is offering customers up to 6.5% interest on term deposits lasting from 18 months to 10 years.
ICICI Bank customers can earn up to 6.6% interest on their fixed deposit. The rate is applicable on the bank's tax saver FDs as well as those with tenures from three years and one day to 10 years.
Punjab National Bank customers can earn anywhere from 3% to 6.5% interest, depending on the tenure of their FD.
Kotak Mahindra Bank is offering customers term deposit interest rates from 2.75% to 6.65%.
Customers are advised to check the latest FD rates on their bank's website before making any investment decisions.
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