RBI Repo Rate Hike: Best time to book your Fixed Deposit (FD)?

Amit Gupta, MD, SAG Infotech, said it will be closely scrutinized how much banks raise their FD rates after the policy rate hike in February.

“It is indeed accurate that the increase in bank lending rates will have a direct impact on both bank depositors and new the borrower, Banks increase the interest rate on their consumer loans after the repo rate increase, and they often increase the loan tenure instead of increasing the monthly EMI after the loan interest rate increase,” said Gupta.

Latest Bank FD Rates

Currently, top banks, such as State Bank of India (SBI), Axis Bank, HDFC, ICICI and Kotak Bank, offer interest rates in the range of 3% – 6.35%. For a tenure of 2 years, the interest rate for SBI FD is 6.75%, Axis Bank FD 7.26%, HDFC Bank FD 7%, ICICI Bank FD 7% and Kotak Bank FD 6.75%. However, IDFC First Bank and IndusInd Bank offer an interest rate of 7.5% for 2-year FDs.

RBI MPC hikes repo rate by 25 bps to 6.5%

Monetary Policy Committee (MPC) of reserve Bank of India On Wednesday, it decided to raise the key benchmark interest rate by 25 basis points to 6.5 per cent. RBI Governor Shaktikanta Das on Wednesday said that four of the six members of the MPC have decided to go ahead with this hike in the repo rate.

The Monetary Policy Committee (MPC) headed by Shaktikanta Das began its three-day meeting on February 6 amid the rate hike that began in May last year to check inflation.

The central bank increased the key benchmark interest rate (repo) by 35 basis points (bps) in the country’s monetary policy review in December, after three consecutive hikes of 50 bps each.