Two of the biggest player's amongst India's private sector banks, HDFC Bank and ICICI Bank have slashed the interest rates they were offering on their respective fixed deposits segment.
The largest Indian private bank, ICICI Bank has reduced its interest rates on term deposits having maturity periods between 91 days to 5 years by 50 basis points. With this rate cut, the highest interest rate offered by the bank is 8.75 percent, which is being offered on term deposits of 390 days to less than 5 years. Earlier, this deposit slab was providing an interest rate of 9.25 percent.
Term deposits with a maturity of 290 days to less than a year will earn an interest of 7.25 percent. Senior citizens are being offered an additional 50 basis points over general interest rates.
The new rates have come into effect from September 11, 2012.
Similarly, the Mumbai based private bank, HDFC Bank, has also brought down its interest rates on fixed deposits of certain tenures by about 0.50 percent.
Fixed deposits with a maturity period of 9 months 16 days will earn 7.75 percent interest rates, a reduction by 25 basis points. Rates on term deposits of 366 to 380 days have been cut down to 8.75 percent. Term deposits with maturity on 381 days have been reduced to 8.75 percent.
However, the bank has also increased its deposit rates on certain slabs. Fixed deposits having maturity period of 6 months 17 days and 9 months 15 days will earn 7.75 percent, an increase by 0.50 percent. The rates on deposits with maturity of 9 months 17 days to 1 year have been increased to 7.75 percent. Deposits with maturity of 382 to 730 days will earn 0.25 percent higher interests, at 8.75 percent.