SBI Vs HDFC Bank Vs ICICI Bank Interest Rates: Bulk FDs Limit Hiked; What It Means To Account Holders?

In major good news for depositors, RBI has decided to hike the bulk deposit limit to Rs 3 crore for scheduled commercial banks, small finance banks and local area banks. Currently, the bulk deposit limit is of Rs 2 crore for SCBs and small banks. However, the same will not apply to rural regional banks.

In its statement on June 7, RBI said, " On a review, it is proposed to revise the definition of bulk deposits as 'Single Rupee term deposits of ₹3 crore and above' for SCBs (excluding RRBs) and SFBs. Further, it is also proposed to define the bulk deposit limit for Local Area Banks as 'Single Rupee term deposits of ₹1 crore and above' as applicable in the case of RRBs. Necessary guidelines will be issued shortly."

Currently, banks have the discretion to offer differential rates of interest on bulk deposits as per their requirements and Asset-Liability Management (ALM) projections.

The last time the bulk deposit limit was enhanced was in the year 2019 for Scheduled Commercial Banks (SCBs) (excluding Regional Rural Banks) and Small Finance Banks (SFBs) as 'Single Rupee term deposits of Rs 2 crore and above

For bank account holders this will mean that the interest rates that were offered on FDs above Rs 2 crore, will now be offered on FDs above Rs 3 crore as bulk deposits. And FDs below Rs 3 crore will be categorized at retail FDs. In the general term, FD rates are higher on bulk FDs than retail FDs.

How banks will revise their FD rates on deposits below Rs 3 crore and above this threshold, will be keenly watched

Bulk deposits mean single rupee term deposits of Rupees two crore and above in Scheduled Commercial Banks (excluding Regional Rural Banks) and Small Finance Banks.

Here are the latest bulk FD rates of major banks.

SBI Interest Rates:

To senior citizens, on bulk term deposits above Rs 2 crore, currently, SBI is offering a 7.50% rate from 1 year to less than 3 years, while 7.25% is offered on 211 days to less than 1 year, and a 7.10% rate is given on 180 days to 210 days.

Other rates are 5.75% on 7 days to 45 days; 6.75% rate on 46 days to 179 days and 3 years to less than 5 years; and 6.50% on 5 years and up to 10 years tenure.

In the general category, the rates are from 5.25% to 7%.

HDFC Bank Interest Rates:

The private bank is offering the highest rate of 7.90% on 1 Year to

In the general category, the interest rates vary from 4.75% to 7.40%.

ICICI Bank Interest Rates:

ICICI Bank is offering as high as 7.30% on bulk deposits below Rs 5 crore on 1 year to 389 days tenure, while 7.25% is offered on 390 days to

An additional interest rate of 5 basis points (bps) over & above the existing 50 bps, will be paid to Senior Citizens on FDs (less than 2 crores) for tenures of 15 months to less than 18 months and 18 months to less than 2 years