Popular banks like ICICI Bank, HDFC Bank, and SBI have cut rates by up to 0.25% on fixed deposit of select maturities. This will negatively impact on senior citizen and risk averse individuals who rely on fixed deposit interest rates for regular income.
This move could be the effect of demonetization of Rs 500, Rs 1000 notes as banks are having enough deposit due to currency ban.
Here are banks which have slashed interest rates on fixed deposits on various maturities.
HDFC Bank has slashed the interest rate on deposits by 25 basis points (bps) for one-year, two-year and three-year deposits to 7%.
ICICI Bank dropped the rate on term deposits by 15 bps for a tenure ranging from 390 days to two years. The new rate is applicable at 7.1%.
Kotak Mahindra Bank
Kotak Mahindra Bank has slashed the interest rate by 25 basis points (bps) to 7% for one-year tenure, The bank has also reduced rates on two and three-year deposits by 50 bps to 6.75%.
State Bank of India
State Bank of India (SBI) cut interest rates on bulk deposits by 15 basis points across one to three-year tenors with immediate effect. Interest rates for term deposits with the tenor of one-year to 455 days, 456 days to two-years and two to three years will now be applicable at 6.90%, 6.95%, and 6.85% respectively.
Punjab National Bank
The bank has reduced interest rates in select maturities by 10-25 basis points on term deposits. The new rates would be effective from November 23.
Canara Bank announced lowering its deposit rates in the range of 0.05-0.25%.
United Bank of India
United Bank of India did it for short-term deposits by 1%. The rates will be applicable from November 18.