IDBI Bank raises rates on term deposits by 10-25 bps

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IDBI Bank on Tuesday increased its interest rates by 10 to 25 basis points on term deposits less than 2 crore. 

This hike comes on the heels of two repo rate hikes totalling to 90 basis points (one bps is equal to one-hundredth of one percentage point) by the Reserve Bank of India in May and June. 

With effect from June 15, 2022, the revised rates would be applicable across various tenors for domestic term deposits, Non-Resident Ordinary (NRO) and Non Resident External (NRE) term deposits, IDBI said in its statement.

“In the present scenario of volatility in the financial markets as well as uncertainty globally and rising inflation domestically, fixed deposit remains a most preferred avenue of safe investment in the Indian market. The bank offers its highest interest rate of 5.75% and offers additional 75 basis points higher interest rate up to 6.50% to Resident Senior Citizen customers across maturities, under its brand “NAMAN Senior Citizen FD,” said Suresh Khatanhar, Deputy Managing Director, IDBI Bank.

 IDBI raised the rates across six maturity buckets. Rates on deposits of tenure from 91 days to six months and between seven years and 10 years saw the highest hike of 25 bps to 4% and 5.75%, respectively. 

State Bank of India (SBI) too on Tuesday raised its deposit rates by 15-20 basis points across three maturity buckets.

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