The interest rates on fixed and recurring deposits at Indian banks have increased at an unprecedented rate. Rates have been increased by State Bank of India, HDFC Bank, and ICICI Bank, among other major financial institutions. These interest rates might be different for different terms and banks.
Starting on February 15, 2023, recurring deposits at the State Bank of India will be eligible for an interest rate of 6.80 percent to 7% for terms ranging from 12 to 120 months.
Beginning on February 20, recurring deposits with a maturity of six months to ten years can earn interest at rates ranging from 5.5% to 7.25 percent for PNB Bank customers.
Starting on February 24, HDFC Bank will offer recurring deposits with a tenure of 6 to 120 months an interest rate ranging from 4.5% to 7.10%.
With the most recent rate change occurring on February 21, YES Bank is currently offering regular customers interest rates ranging from 6% to 7.5% on recurring deposits for terms of six months to ten years.
With effect from February 24, ICICI Bank will offer regular customers interest rates ranging from 4.75 percent to 7.10 percent on recurring deposits for terms of six months to ten years.
Before making a decision, it is essential to compare the interest rates and terms offered by various banks when investing in recurring deposits. It’s also important to remember that if the depositor doesn’t pay the sixth installment or return the money they put in, the bank may close the account.
