Flush with cash due to the demonetisation exercise and with liquidity comfort, major lenders, including ICICI, HDFC Bank, Axis Bank and SBI has slashed Fixed Deposit rates by up to 0.25 per cent in view of surge in deposits following the demonetisation.
The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days.
Here are the list of banks and their new FD rates.
For fixed deposit between 390 days to 2 years, the banks has lowered the interest rate by 0.15 per cent effective on Wednesday. ICICI Bank will pay 7.10 per cent as against 7.25 per cent earlier.
HDFC Bank has reduced interest rate by 0.25 per cent across all tenures on bulk deposits ranging between Rs 1-5 crore. The new rates are effective from Thursday. With the revised interest rates, the one-year fixed deposit will attract an interest rate of 6.75 per cent as against the 7 per cent earlier. For fixed deposits between '3 years 1 day-5 years', the rate has been lowered to 6.5 per cent from 6.75 per cent.
State Bank of India (SBI)
SBI on Wednesday slashed fixed deposit rates on select maturities by up to 0.15 per cent. Term deposit of 1 year to 455 days has been reduced by 0.15 per cent to 6.90 per cent from 7.05 per cent effective on Thursday.
Besides, the one of 456 days to less than 2 years also gets cheaper to 6.95 per cent from 7.10 per cent. Term deposit between 2-3 years will now attract interest rate of 6.85 per cent from 7 per cent. The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits.
Private lender Axis Bank has cut marginal cost of fund-based lending rate (MCLR) by 0.15-0.20 per cent.