HDFC Bank has reduced the interest rate on its fixed deposits by 10 basis points.
Reportedly, HDFC Bank, India’s largest private sector bank, has lowered its interest rates by 10 basis points on fixed deposits for one to two years. This is the second time India’s largest private sector lender has revised its interest rates over a period of two weeks. The previous revision was made effective on July 22, 2019, while the latest revision comes into effect post 2nd August, 2019.
The revision has been made just before the Reserve Bank of India's monetary policy review, which was scheduled on 7 August, 2019. The Reserve Bank of India has already reduced the repo rates three times in the last three Monetary Policy Committee’s meetings. Repo rate is the interest rate at which the central bank lends money to the commercial banks.
HDFC Bank has revised interest rates on short term deposits. The applicable maturity periods are 1 year, 1 year one day to 1 year three days, 1 year four days, 1 year five days to 1 year 15 days, 1 year 16 days and 1 year 17 days to 2 years. The current interest rates stands between 3.50% and 7.30% on deposits for a period of 7 days to 10 years across various tenures. For deposits with a tenure of 7 days to 6 months, the interest rate has not been changed for the general public as well as senior citizens.
On fixed deposits of seven days to less than one year, HDFC Bank is offering an interest rate of 6.75% to the general public and 7.25% to senior citizens. For deposits maturing in 1-2 years, the interest rate has been reduced by 10 basis points. On deposits maturing in 1 year to 1 year 16 days, the interest rate has been lowered to 7.00%.
What remains unchanged is the interest rate on long term tax-saver fixed deposits. The bank has also kept the interest rates unchanged on fixed deposits maturing in 2-3 years and 3-5 years.