Banks are passing on the benefits after the Reserve Bank of India hiked the repo rate by 90 basis points in the last one month. Check out which bank is offering the best here FD Interest Rates For a tenure of 1-3 years.
HDFC Bank FD interest rates with tenure of 1- 3 years
For the second time in a week, HDFC Bank raised interest rates on fixed deposits (FDs) of less than Rs 2 crore. Bank hikes fixed rate by up to 25 basis points; The new interest rates will be effective from June 17, 2022.
On fixed deposits maturing from one year to less than two years, the bank will now offer an interest rate of 5.35 per cent, from 5.10 per cent earlier, an increase of 25-basis points. Deposits maturing in two years, one day or three years will now be paid 5.50% instead of 5.40%, an increase of 10 basis points.
ICICI Bank FD interest rate with tenure of 1- 3 years
ICICI Bank, a private lender, has hiked fixed deposit interest rates once again on amounts below Rs 2 crore, barely six days back. The private bank increased fixed-rate (FD) rates by 5 basis points for a select period, and the new rates are currently effective from June 22, 2022.
The interest rates for FDs with tenures of one to two years have been increased from 5.30 per cent to 5.35 per cent. The bank offers 5.5 per cent interest on fixed deposits of two years and one day to three years.
Short term or long term, which tenure will grow first and highest?
When interest rates rise rapidly the growth is not always evenly distributed. Generally, it is the longer term FDs that can see a higher rise in interest rates at this stage than the short term ones.
Should I wait for rates to go above 7% to book long term?
So, if you are looking to book an FD for a longer tenure or have a larger FD to be renewed, this may not be the right time to do so. There is no reason to lock in longer term rates now. Right now it would be a good idea to take a short term auto renewal FD of around 6 months at a time. Long term FDs can be taken after around a year, when the scope for further growth is likely to be slow and limited