As several banks have decided to hike the interest rates on fixed deposits soon after the hike announced by Reserve Bank of India in repo rate, investment in fixed deposits can fetch better returns. Now Dhanlaxmi Bank Ltd has also announced a hike in the interest rates of domestic and non-residential fixed deposits of below Rs 2 crore.
The bank offers an interest rate of 3.25% for deposits for the tenor of 7 days to 45 days. The interest rates for deposits maturing in 46 days to 90 days will remain 3.75. There is a hike of 50 bps for deposits maturing in 91 days to 180 days. These deposits will not fetch citizens an interest rate of 4.50% from the previous 4.00%.
The bank will now offer 5.55% interest rate for deposits maturing in 555 days. Meanwhile, for deposits held above 2 years upto and inclusive of 3 years, the interest rate will 5.30% while for deposits above 3 years upto and inclusive of 5 years, the interest rates will now be 5.40%.
Dhanlaxmi Bank will offer an interest rate of 5.75% and for deposits maturing above 5 years and inclusive of 10 years, the interest rate will be 5.50%.
Meanwhile, senior citizens will remain eligible for an additional interest rate of 0.50% for all domestic term deposits of 1 year and above barring Dhanam Tax Advantage deposits.