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News You Can Use: HDFC Bank Slashes FD Rates, Check Out The Revised Interest Rates

Team BankBazaar
·3-min read
Photo by Maitree Rimthong from Pexels
Photo by Maitree Rimthong from Pexels

The country’s largest private sector bank has announced that it has slashed the interest rates on fixed deposits for certain tenures effective from October 15, 2020. According to the HDFC Bank, the interest rates on term deposits maturing in one year and two years has been cut by 20 bps and 10 bps, respectively. However, the bank has kept the interest rates unchanged for long-term deposits maturing anywhere between 2 years to 10 years.

According to the new rates, FDs maturing in 1 year will now fetch 4.9% p.a. while those maturing in 2 years will earn 5% p.a. for deposits below Rs. 2 crore. FDs of more than Rs. 2 crore but less than Rs. 5 crore will now earn 3.75% p.a. and 4.25% p.a. for tenures 1 year and 2 years, respectively.

Do note that senior citizen depositors will continue to earn a preferential interest rate of 0.5% on all the tenures. For example, they will now earn 5.4% p.a. and 5.5% p.a. on FDs amounting to less than Rs. 2 crore maturing in 1 year and 2 years, respectively. For bigger FDs (up to Rs. 5 crore), the applicable interest rate would be 4.25% p.a. On top of it, senior citizens who invest in FDs with a maturity period of more than 5 years will earn an additional 0.25% p.a. (i.e. over and above the 0.5% spread) for new deposits and renewals made before December 31, 2020. Here are the latest HDFC Bank FD rates across all the tenures.

New HDFC Bank FD rates effective from 15 October, 2020

Tenure

Investment < Rs. 2 cr

Investment >=Rs. 2 cr to < Rs. 5 cr

Interest rate

Senior citizen rates

Interest rate

Senior citizen rates

7-14 days

2.5% p.a.

3% p.a.

2.5% p.a.

3% p.a.

15-29 days

2.5% p.a.

3% p.a.

2.5% p.a.

3% p.a.

30-45 days

3% p.a.

3.5% p.a.

2.75% p.a.

3.25% p.a.

46-60 days

3% p.a.

3.5% p.a.

2.75% p.a.

3.25% p.a.

61-90 days

3% p.a.

3.5% p.a.

3% p.a.

3.5% p.a.

91 days-6 months

3.5% p.a.

4% p.a.

3% p.a.

3.5% p.a.

6 mnth 1 day-9 mnths

4.4% p.a.

4.9% p.a.

3.5% p.a.

4% p.a.

9 mnth 1 day – < 1 yr

4.4% p.a.

4.9% p.a.

3.65% p.a.

4.15% p.a.

1 year

4.9% p.a.

5.4% p.a.

3.75% p.a.

4.25% p.a.

1 yr 1 day – 2 years

5% p.a.

5.5% p.a.

3.75% p.a.

4.25% p.a.

2 yrs 1 day – 3 yrs

5.15% p.a.

5.65% p.a.

4.25% p.a.

4.75% p.a.

3 yrs 1 day – 5 yrs

5.3% p.a.

5.8% p.a.

4.25% p.a.

4.75% p.a.

5 yrs 1 day – 10 yrs

5.5% p.a.

6.25% p.a.*

4.25% p.a.

5% p.a.*

Data taken from HDFC Bank’s website on Oct. 15, 2020. * Additional 0.25% over and above preferential margin of 0.5% for senior citizen deposits of more than 5 years’ tenure for new FDs and renewals made until December 31, 2020. Data compiled by BankBazaar.com