HDFC Bank has recently revised the fixed deposit interest rate which is going to be effective from August 2nd onwards. The rates would be applicable for amounts below Rs 2 crore on select maturities only. The interest rates have been revised for short term deposits and they will be for maturity periods like 1 year, one year one day to one year three days, one year four days, one year five days to one year fifteen days, one year sixteen days and one year seventeen days to 2 years.
HDFC Bank offers interest rates starting from 3.50% per annum to 7.30% per annum on deposits that mature in seven days to ten years. For those deposits that mature in seven days to 6 months, the interest rate will remain the same at 6% per annum for the general public and 6.50 % for senior citizens. For fixed deposits of seven days to less than a year, the interest is 6.75% for general public ad 7.25% for senior citizens.
Key things to note
It was recently announced that HDFC had reduced the interest rate by 10 basis points on deposits which will be maturing in one year to two years. For deposits that are maturing in one year to one year sixteen days, the interest rate has been reduced to 7.00%. Likewise, fixed deposits that would be maturing in one year 17 days to 2 years will have an interest of 7.10% instead of 7.20%. Those term deposits which will be maturing in two to three years will have an unchanged rate of 7.30% and the bank has also kept the rates unchanged for FDs within three to five years at 7.25%.
The rates have also not been revised for long term tax-saving FDs and for the term deposits maturing in 5 years to 10 years, the bank will continue to offer an interest rate of 7.00%. HDFC Bank will have increased the rates on these deposits by 50 basis points, when the rates were last revised on 22nd July 2019. SBI and PNB had also revised their interest rates recently from 1st and 2nd August respectively.
All the information was published on the bank’s official website. The rate cuts were announced before the Reserve Bank of India’s monetary policy review, which was scheduled for 7th August had happened. There were expectations that another 25 basis points cuts in lending rate. The RBI had also previously reduced that the repo rate three times in the last three MPC meetings. During the June policy review, RBI had signaled that rates could be reduced further in spite of reducing them already three times in a row and all of this was in an effort to propel the slowing economy forward again. It is expected that with RBI reducing the rates, the interest rate of home and auto loans would also come down and this would give the purchasers greater lending power, a key driver for taking any economy forward beyond a point.