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Banks Slashed Fixed Deposit Rates: Merrymaking Time For All Loan Seekers!

Latest Updated on Bank Fixed Deposit Rates

The crackdown on black money is a kind of bad news for fixed deposit investors as the government put a ban on 500 and 1000 denominations to curb black money for a better future of our Country. With cash amounting to thousand lakh crores pouring into banks everyday, major banks have decided to cut deposit rates. Banks Slashed Fixed Deposit Rates and eventually, this will lead to cheaper lending rates for home loans, personal loans, car loans, Loan Against Property, etc as well in the next few days.

Banks’ decision to cut down deposit rates in order to comply with the Reserve Bank of India rate cuts which the apex bank set to 175 bps since January 2015. To pass on the benefits of RBI bps rate cut to the borrowers, banks have decided to provide a loan to every borrower at a lower rate of interest. Loans will be cheaper but it can be a setback for fixed deposit investors. Taking the advantage of upsurge in deposits following demonetization, major lenders, including ICICI Bank, Canara Bank, and HDFC Bank, on Thursday lowered fixed deposit rates by up to 0.25 percent.

Here are some banks that have already slashed interest rates on Fixed Deposits:

ICICI Bank

ICICI Bank’s current fixed deposit rate will be 7.10 percent as against 7.25 percent earlier (effective from 17.11.16).

HDFC Bank

HDFC Bank has reduced the interest rate by 0.25 percent to 7% (effective from 17.11.16) across all tenures on bulk deposits ranging between Rs 1-5 crore. The one-year fixed deposit will attract an interest rate of 6.75 per cent as against the 7 per cent earlier.

Kotak Mahindra Bank

Kotak Mahindra Bank has also reduced the interest rate by 25 basis points (bps) to 7% on 1 year fixed deposits. Kotak has also slashed interest rates on two- and three-year deposits by 50 bps each to 6.75% (to be effective from Monday).

State Bank of India

The country’s largest lender SBI slashed fixed deposit rates on select maturities by up to 0.15 percent.

  • SBI’s term deposit of 1 year to 455 days has been reduced by 0.15 per cent to 6.90 per cent from 7.05 per cent effective on Thursday.

  • Fixed deposit of 456 days to less than 2 years also gets cheaper to 6.95 per cent from 7.10 per cent.

  • The interest rate on 1-year fixed deposit of SBI is now at 7.05%, compared to 7.15% earlier.

  • All effective from 17.11.16.

Axis Bank

Axis Bank has lowered down marginal cost of fund-based lending rate (MCLR) by 0.15-0.20 per cent.

United Bank Of India

Kolkata based United Bank of India has cut down it deposit rates in the range of 0.25 per cent to 1 per cent for deposits up to Rs 1 crore for fixed deposit of 46 days to 1 year. UBI has also slashed deposits rates above Rs 1 crore and Rs 5 crore for the same maturity.

Canara Bank

Canara bank has revised its deposit interest rates in different maturities in retail and bulk deposits in the range of 5 bps (0.05 percent) to 25 bps (0.25 per cent).

Punjab National Bank continues to hold rates on one-year, two-year and three-year fixed deposits rates at 7.25%.

What are you waiting for?? Start searching for the best home loan, personal loan and loan against property at loansninsurances.com and get the perfect loan which will suffice your needs. Your dream for a sweet home is not a distant dream anymore with banks lowering their lending rates very soon.