Fixed deposits (FDs) are one of the most popular mutual funds in our country, particularly among elderly.
The simplicity of investing and assured returns makes FDs a great investment choice not just for the elderly but also for those who do not want to put their hard-earned assets at danger.
The principal amount invested and the length of the investment determine the rate of interest on an FD. Before investing, it's usually a good idea to check the FD rates given by different banks.
Let's take a look at the newest FD interest rates from SBI, HDFC Bank, and ICICI Bank.
HDFC Bank's most recent FD rates
According to the lender's website, HDFC Bank has boosted the interest rates on fixed deposits of less than 2 crore for specific tenures. The new fixed deposit (FD) rates go into effect on April 20, 2022. For the general population, HDFC Bank provides 2.50 percent to 5.60 percent interest rates on deposits due in 7 days to ten years.
SBI latest FD interest rates
SBI FDs with durations ranging from 7 days to 10 years will provide regular consumers with returns ranging from 2.9 percent to 5.5 percent. Senior citizens will get an additional 50 basis points (bps) on their deposits ranging from -3.4 percent to 6.30 percent. These tariffs will be in effect from February 15, 2022.
ICICI Bank latest FD interest rates
On deposits payable in 7 days to 10 years, ICICI Bank offers interest rates ranging from 2.50% to 5.60%. These tariffs will be in effect beginning January 20, 2022.
Why are banks raising their FD interest rates?
"Inflation is one of the major factors influencing interest rate levels." The higher the inflation rate, the more likely interest rates will rise. This happens because lenders will demand higher interest rates to compensate for the future reduction in buying value of the money they are paid.
As India's inflation rate grows, most banks are raising FD rates to shield consumers from potential increases in inflation, according to Ravi Singhal of GCL Securities.
