Banks increase FD rates for higher maturity period by few basis points

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    Fixed deposits that have long been a safe bet for most of the traditional investors have in today's arena lost much of their sheen due to other safer investment bets providing far better returns.

    Banks Hike FD Interest Rates
    Nonetheless, some of the major banks have revised their FD interest rates for different maturity baskets. All in all for FDs with shorter maturity term, rates have been reduced or lowered down by as much as 25-50 basis points. 1 basis point is one hundredth of a percentage. While, rates have been revised upwards in case of FDs with higher maturity term.

    Few of the banks that have made the revision with FD rates are provided here:

    BankFD AmountTenureOld FD rateNew FD rate
    Bank of Baorda< 1 crore1 year7%6.90%
    Bank of Baorda< 1crore3 years to less than 5 year6.50%6.75%
    SBI< 1crore2 years to less than 3 yrs6.75%6.25%
    SBI< 1 crore3 years to 10 yrs6.50%6.25%
    Kotak Mahindra< 1 crore1 year to 3 year6.25%6.50%
    Axis Bank< 1 crore1 year to 1.5 yr6.25%6.50%

    How upward revision in FD rates can profit you?

    Though it is a time when interest rates are constantly falling, ideally you shouldn't be making an FD investment. Nevertheless if FDs interests you as a safe instrument, make a better choice in respect of the return as to which maturity term fetches you higher returns. Alternatively, without compromising on the standing and overall worthiness of the bank, you can also look for FD offerings by new banks with higher rate of interest.

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