Private banks raise FD rates by up to 4 per cent
In a bid to improve liquidity conditions, two leading private sector banks -- HDFC Bank and Axis Bank -- have raised fixed deposit rates by up to 4 percent, which may inspire others to do the same.
To begin with, HDFC Bank has raised fixed deposit rates by 1 percent for maturities between 15 days to 6 months-one-day with effect from July 27, as per information available on its website. It has increased the interest rate by 0.75 per cent for maturity buckets less than 1 year but over 6 months one day.
Axis Bank has raised interest rate on term deposits with maturity between 14-29 days by 4 to 8 percent, while in case of 7-14 days the increase is by 3.5 to 7.5 percent on bulk deposits above Rs 1 crore, effective this day. At the same time, the bank raised interest rate by 0.5 to 2.25 percent across the various maturities less than one year but over 29 days, as per information posted on Axis Bank website.
It may be noted that another private sector run Yes Bank had raised lending and deposit rates by up to 0.5 per cent.