Equitas Small Finance Bank has revised fixed deposit (FD) interest rates upwards to below Rs 2 crore, effective Thursday (8 September). The latest interest rate will be in the range of 3.50-7.25% for terms between 7 days and 10 years, while seniors can benefit from FD interest rates up to 7.75% per year.
Lenders have raised interest rates on their deposits as well as on their loans. This comes after the RBI’s monetary policy committee raised the repo rate three times in the past three months to 5.4%, in a bid to control inflation. Several major banks, including Punjab National Bank, Kotak Mahindra Bank and ICICI Bank, have also raised interest rates to offset the higher marginal cost of funds.
Equitas Small Finance Bank’s latest interest rates on FD below Rs 2 crore (effective 8 September):
7 days to 14 days: 3.50%
15 days to 29 days: 3.50%
30 days to 45 days: 3.50%
46 days to 62 days: 4.00%
63 days to 90 days: 4.25%
91 days to 120 days: 4.75%
121 days to 180 days: 4.75%
181 days to 210 days: 5.25%
211 days to 270 days: 5.25%
271 days to 364 days: 5.25%
1 year to 18 months: 6.75%
18 months 1 day to 2 years: 6.75%; For the elderly – 5.75%.
2 years 1 day to 887 days: 7.00%
888 days: 7.25%
889 days to 3 years: 7.00%
3 years 1 day to 4 years: 6.00%
4 years 1 day to 5 years: 6.00%.
According to its website, Equitas Small Finance Bank also offers interest rates of up to 7.75% per annum for senior citizens for 888 days. Partial and complete withdrawal before maturity is also permitted. There is no early withdrawal penalty for all DFs reserved for seniors as of December 2, 2019 (not applicable for groupings).
There is no penalty for early withdrawal after six months. Apart from this, the appointment service is also available.
On Wednesday, September 7, private sector lender Axis Bank also raised its fixed deposit (FD) interest rates for certain account holders who open such accounts. The Axis Bank FD rate hike comes at a time when major banks are raising interest rates on fixed deposits. Rate changes are applicable for deposits below Rs 2 crore. Axis Bank FD rates came into effect from Wednesday, September 7.
On the lending front, HDFC Bank recently increased its marginal cost of lending rate, or MCLR, across all tenors. HDFC Bank’s new MCLR rates went into effect Wednesday, September 7. Over the past three months, HDFC Bank has raised its lending rates by as much as 65 basis points.
HDFC Bank’s MCLR rate hike will mean that loan interest for new and existing borrowers is expected to increase, including monthly equivalent payments (EMI) for home loans, auto loans and any other marginal cost related loans. HDFC Bank’s MCLR was increased by up to 10 basis points, or 0.10%.
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