It seems the era of fixed deposit (FD) rate hikes is not over yet. Even as the Reserve Bank of India (RBI) maintains the key repo rate at 6.5 per cent for the fifth consecutive time in the December 8 MPC meeting, several banks have hiked the interest rates on fixed deposits this month, December 2023.

Bank of India hikes FD rates in December 2023

Bank of India hiked its fixed deposits for its customers & general public (for 2 crore and above to less than Rs.10 crore) with effect from 1st December, 2023. Bank of India has increased its fixed deposit rates for shorter periods i.e. “46 days to 90 days” tenure to 5.25%, “91 days to 179 days” tenure to 6.00%, for “180 days to 210 days” tenure to 6.25%, for “211 days to less than 1 Year” tenure to 6.50% and for “1 Year” tenure to 7.25% p.a.

Kotak Bank hikes FD rates in December 2023

Kotak Mahindra Bank increased interest rates on tenors ranging from three to five years.  After the latest revision, Kotak Bank offers an interest rate of 2.75% to 7.25% for general customers on deposits maturing in seven days to ten years, and 3.35% to 7.80% for senior citizens on these deposits. These rates are effective from 11 December 2023.

DCB Bank hikes FD rates in December 2023

DCB Bank has hiked fixed deposit interest rates on select tenors for deposits below 2 crore. The new rates are effective from 13 December as per the DCB Bank website.

The bank is offering the highest FD interest rate of 8% to general customers and 8.60% for senior citizens, after the revision.

After the latest hike, DCB Bank is offering an interest rate ranging from 3.75% to 8% on FDs maturing in seven days to ten years to general customers, and 4.25% to 8.60% to elderly people.

Federal Bank has revised its deposit interest rates effective from December 5, 2023. For deposits made by both residents and non-residents, the interest rate has been raised to 7.50% for 500 days. For senior citizens, Federal Bank is now giving a maximum return of 8.15% for 500-day tenures and 7.80% for tenures beyond 21 months to less than three years.

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Published: 25 Dec 2023, 02:25 PM IST