ICICI Bank, Canara Bank modify fixed deposit rates ahead of RBI policy announcement

In the lead-up to the Reserve Bank of India's (RBI) policy announcement on Thursday, several banks made adjustments to their fixed deposit (FD) rates. ICICI Bank (NS: ICBK ), Canara Bank (NS: CNBK ), HDFC Bank (NS: HDBK ), Bank of India (NS: BOI ), and Punjab and Sindh Bank were among those that revised their rates on October 5, 2023.

ICICI Bank updated its bulk fixed deposit interest rates applicable to deposits between ₹2 crore and less than ₹5 crore. The updated rates are inclusive of general category customers and senior citizens, with a peak interest rate of 7.25% for varying tenures. The bank has noted that these rates may change without prior notice and will be taxed as per Indian Income Tax Laws.

On the same day, Canara Bank also modified its fixed deposit rates. Callable deposits now offer an interest range of 4.00%-7.25% for regular customers and up to 7.40% for senior citizens, with maturity periods ranging from a week to ten years. Non-callable deposits yield higher returns up to 7.40% and up to 7.90% for seniors, prohibiting premature withdrawal. The Canara Tax Saver Deposit scheme provides a 6.70% per annum rate, capped at a deposit of ₹1.50 lakh. Seniors receive an extra interest of 0.50% for deposits under ₹2 crore with a six-month tenure or more.

In anticipation of the RBI's meeting, HDFC Bank trimmed its fixed deposit interest rates for 35 and 55 months tenures to a spectrum of 3% to 7.15%. Simultaneously, Bank of India and Punjab and Sindh Bank enacted sizable adjustments in their FD rates for deposits below ₹2 crore. The former now extends an interest range of 3% to 7.25%, while the latter offers from 2.80% to 7.40% over various terms.

These changes came ahead of the RBI's Monetary Policy Committee meeting on Friday, where the repo rate was maintained at 6.5%.

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