In a strategic move to benefit its customers, HDFC Bank, the leading private bank in the country, has announced an increase in its fixed deposit interest rates.
This decision comes on the heels of recent interest rate hikes by other banks in the nation, offering a lucrative opportunity for investors seeking enhanced returns.
Interest Rate Boost:
Effective November 27, 2023, HDFC Bank has elevated the interest rates specifically on its non-withdrawable fixed deposits. This move is set to provide investors with more substantial returns on their fixed deposits.
Interest Rates Breakdown:
HDFC Bank has raised interest rates on fixed deposits ranging from 1 year to 10 years for deposits of Rs 2 crore and above.
Investors can now enjoy a 7.45% return on fixed deposits of one year to two years,
and a competitive 7.2% return on fixed deposits spanning from 2 years to 10 years.
Comparing the Rates:
When comparing HDFC Bank’s non-withdrawable fixed deposits with State Bank of India (SBI), HDFC Bank emerges as the more lucrative option.
Under its ‘Savottam Scheme,’ SBI offers 7.10% interest on 1-year FD and 7.40% interest on 2-year FD.
For senior citizens, the rates are 7.60% on 1-year FD and 7.90% on 2-year FD. However, these rates are applicable for deposits ranging from Rs 15 lakh to Rs 2 crore.
Understanding Non-Withdrawal FD:
It’s important to note that HDFC Bank’s non-withdrawal fixed deposits cannot be prematurely closed before maturity.
Any attempt to withdraw funds before the deposit term concludes will result in the forfeiture of interest on the principal amount.
Investors seeking optimal returns on fixed deposits may find HDFC Bank’s recent interest rate hike a compelling reason to consider this private bank over traditional government-backed options.
