Bank FD Rate Hike: This bank has given a Diwali gift to its customers by increasing interest rates on FDs...

Bank FD Rate Hike: If you still prefer bank fixed deposits (FDs) for your investments, there is good news for you. A bank has offered a gift to its customers ahead of Diwali by increasing the interest rates on its fixed deposits.

Let’s find out which bank has provided this gift to its customers and by how many basis points it has raised the FD interest rates.

Bank offers a gift to customers by increasing FD interest rates
ICICI Bank, a major private-sector bank, has given a gift to its customers ahead of Diwali by raising interest rates on select fixed deposits. The bank has increased the interest rates by 10 basis points—or 0.10%—on fixed deposits of less than ₹3 crore.

This adjustment in interest rates primarily applies to long-term fixed deposits. With these new rates, general customers can earn a maximum interest of 6.60%, while senior citizens can earn up to 7.20%. However, the exact interest rate will depend on the tenure for which the customer opens the fixed deposit.

What interest will you earn on FDs of different tenures?
ICICI Bank has increased interest rates for general customers on certain fixed deposits with tenures exceeding two years. For FDs with a tenure ranging from two years and one day to three years, the interest rate has been raised from 6.45% to 6.55%.

Similarly, for FDs with a tenure ranging from three years and one day to five years, the interest rate has been increased from 6.50% to 6.60%. FDs with tenures between five years and one day and 10 years will now also earn an interest rate of 6.60%. Additionally, the interest rate on five-year tax-saver fixed deposits has been raised from 6.50% to 6.60%. Bank interest rates vary for short-term fixed deposits (FDs). An interest rate of 2.75% is offered on FDs with a tenure of 7 to 45 days, 4% on those ranging from 46 to 90 days, and 4.50% on FDs with a tenure of 91 to 184 days.

For FDs with a tenure ranging from 185 days to less than one year, the interest rate is 5.50%. FDs with a tenure of one year to less than 18 months earn 6.25% interest, while those with a tenure of 18 months to two years earn 6.30%.

Interest Rates on FDs for Senior Citizens
Under ICICI Bank’s new rates, senior citizens are offered higher interest rates compared to general customers. On select FDs, senior citizens can earn a maximum interest rate of 7.20%.

The interest rate for FDs with a tenure of two years and one day to three years has been increased from 6.95% to 7.05%. For FDs with a tenure of three years and one day to five years, the interest rate is now 7.20%, up from the previous 7.10%.

The interest rate for FDs with a tenure of five years and one day to 10 years has been raised from 7% to 7.10%. Additionally, senior citizens will now earn 7.20% interest on five-year tax-saver FDs.

Senior citizens also receive higher interest rates than general customers on short-term FDs. They earn 3.25% on FDs of 7 to 45 days, 4.50% on those of 46 to 90 days, and 5% on those of 91 to 184 days. For FDs with a tenure of 185 days to less than one year, the interest rate offered is 6%. Additionally, an interest rate of 6.75% will be offered on FDs with a tenure of one year to less than 18 months, and 6.80% on FDs with a tenure ranging from 18 months to two years.

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