According to the bank website, term deposits with a maturity of one year to two years will now fetch 5.50 percent interest from earlier 5.35 percent, an increase of 15 basis points, while those with a maturity of two years one day to 3 years will fetch 5.60 percent interest from 5.50 percent.
ICICI Bank will now offer a 6.10 percent interest rate on three-years one-day to five years fixed deposits from 5.7 percent, an increase of 40 bps, and a 5.90 percent interest rate five years one day to ten years, the interest rate offered from earlier 5.75 percent. The bank is offering 6.10 percent on tax saving FDs..
Other banks
Many big banks including , , have already hiked their fixed deposit interest rate after the Reserve Bank of India hiked repo rate by 50 basis points in its August monetary policy review meeting.
FD ladder
Making an FD ladder is one of the best ways to manage fixed income instruments. Particularly senior citizens who rely mainly on these products for investing may benefit from using it to boost return and manage liquidity. When creating an FD ladder, you divide a large FD into smaller ones rather than booking it for an extended period of time.