These Banks Have Changed Their Fixed Deposit Interest Rates; Check Latest FD Rates Here

Following the Reserve Bank of India's second interest rate increase, SBI, ICICI Bank, HDFC Bank, and other banks raised their fixed deposit interest rates across a variety of tenors, offering depositors a reason to save money with them.

While equity markets are suffering globally, the Nifty 50 has lost around 13% of its value so far this year, while its US counterpart, the Nasdaq composite, is down over 30%.

Why interest rates are hiked?

One of the specific tools to control market liquidity, or the supply of money, is interest rates. Higher liquidity is a result of lower interest rates since borrowing is less expensive. Over time, this may cause inflation, which is what has recently happened.

On the other side, higher interest rates drain the market's liquidity, which lowers demand and, in turn, inflation.

The RBI announced two rate hikes as a result of India's inflation hitting record levels, and further increases are expected in the upcoming months.

The interest rates on home loans and other borrowings have risen as a result, but banks have also passed on the advantages of the rate hike to depositors.

Here are some of the most popular tenors' most recent FD interest rates from some of India's biggest banks:

Senior citizens who participate in these FD schemes may receive an extra interest rate of 0.5% to 1%. Pensioners will also find this to be a relief, particularly now that the government has approved a reduction in the interest rate on employees' provident funds (EPF) to 8.1%.

The government-owned State Bank of India has raised rates for deposits over 2 crores from 4.25% to 4.75% for a term of two to three years. The interest rate has increased to 5% for deposits with a longer duration.