After RBI’s repo rate hike by MPC, DBS Bank India revises FD rates upwards

NE BUSINESS BUREAU
CHENNAI, AUG 1

Private sector lender DBS Bank India Limited, Asia’s Safest Bank, on Monday announced an upward revision of the Fixed Deposit (FD) rates offered by the bank across tenures for funds below Rs 2 crore. The new rates have become effective from Thursday (July 28).

It now offers interest rates in the range of 2.5-6.25 per cent for the general public and 3-6.75 per cent for senior citizens.

Earlier, Bank of Baroda, Kotak Mahindra Bank, and PNB also raised their rates on deposits and loans. The lenders are raising the FD rates as the RBI’s Monetary Policy Committee (MPC) hiked the key repo rates in order to control inflation in the country.

• The lenders are raising the FD rates as the RBI’s Monetary Policy Committee (MPC)
• It now offers interest rates in the range of 2.5-6.25 per cent for the general public and 3-6.75 per cent for senior citizens.

The MPC in its previous policy review in June raised the key repo rate by 50 basis points (bps), which was the second hike within almost a month after it increased 40 basis points in an off-cycle policy review in May. The retail inflation in June stood at 7.01 per cent, which is slightly lower than the 7.04 per cent recorded in May but is

As a result of the revision, the bank increased the interest rates on fixed deposits by up to 50 basis points (bps) on deposits of 1 to 3 years. In accordance with the revised, the bank is now offering interest rates on deposits maturing in 7 days to 5 years and more that range from 2.50 percent to 6.25 percent for the general public and 3 percent to 6.75 percent for senior citizens.

The bank will now give an interest rate of 2.75 percent on fixed deposits maturing in 7 days to 60 days, and 3.00 percent on term deposits maturing in 61 days and up to 180 days, according to DBS Bank.

Deposits at DBS Bank that mature in 181 days and up to a year will still earn an interest rate of 4.75 percent, but deposits that mature in a year and up to 375 days will now earn an interest rate of 5.75 percent, up from 5.65 percent—a 10 basis points increase.

On deposits maturing in 376 days to less than two years, DBS Bank will now give an interest rate of 6%, up from 5.75% earlier, a hike of 25 bps. The interest rate on deposits maturing in 2 years and up to 3 years has increased by 50 basis points to 6.50 percent, which was earlier 6%, while the interest rate on deposits maturing in 3 years to 5 years and above has remained constant at 6.25 per cent.

For tenors of more than six months, senior citizens will continue to get an additional 50 basis points over and above the regular interest rate.

The deposit rates along with the annualised yields are as below: