Interest rate News

A 50 bps increase in the repo rate leads to a 1.11 per cent rise in Net Interest Income (NII) across SCBs, with PSBs showing a sharper 1.45 per cent gain, it noted.

Small Savings Schemes Interest Rates:  The last revision in interest rates for post office savings schemes was made during the January-March quarter of FY 2023-24.

The new rate for the girl child savings scheme Sukanya Samriddhi has been increased to 8 percent from 7.6 percent.

After the latest hike in rates, the US monetary policy committee anticipates that some "additional policy firming" may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 per cent over time.

Notably, the Bank of Baroda in December 2022 increased retail term deposit interest rates by up to 65 bps and in November 2022 by up to 100 bps. 

The central bank has promised to make its policy "precise and forceful" this year to support the economy, keeping liquidity reasonably ample and lowering funding costs for businesses.

While systemic banking crises generally morph into deep recessions, the euro zone's financial system is in its best shape in years, with capital, liquidity and profits all at healthy levels.

In India too, the Monetary Policy Committee (MPC) of the RBI decided to raise the repo rate, the rate at which the RBI lends money to all commercial banks, by 25 basis points to 6.5 per cent. Since May last year, the RBI has increased the short-term lending rate by 250 basis points to contain inflation.

The ECB started raising rates in July, four months after the Fed did, and from lower levels including below zero for one of its key benchmarks.

Govt hikes interest rate on post office savings schemes on Friday. Interest rate on senior citizen savings scheme and Kisan Vikas Patra hikes up to 1.1%. This is the second quarter of an increase in a row in interest rates for some schemes.

UK risked being plunged into the longest recession in 100 years. BoE makes historical interest rate hike to 3% since 1989 due to weak economic cues. The UK economy faces a "very challenging outlook".

The Bank of England raised interest rates to 3% on Thursday from 2.25%, its biggest rate rise since 1989. Britain has already entered a recession that could potentially last two years. Just before Thursday's policy decision, markets expected rates to peak at around 4.75%.

The RBI cut interest rates from 5.15 per cent when the pandemic hit to as low as 4 per cent, which then boosted real estate assets. Declining interest rates were a key reason for the massive housing demand surge in the past two years. It is widely expected the RBI may hike rates by 50 basis points in the monetary policy review meeting during September 28-30.

Post office fixed deposit is safe and profitable. Customers can open post office FDs in different tenors 1,2,3,& 5 years. 5.50 % interest is available on FD of 7 days to one year.

Realty experts feel that the demand for houses will not witness a massive impact. Interest rates have a profound effect on the value of residential properties. This rate hike has a moderate impact on residential property sales.

Post office's National savings certificate is risk free saving scheme with five-years lock in period. The minimum amount is Rs 1000 to begin the saving certificate scheme and offers 6.8% interest rate. Tax exemption up to Rs 1.5 lakhs is available under section 80C of Income tax in NSC scheme.

The bank has increased the interest rate on FDs maturing in 7 days to 14 days to 3.50 per cent. IDFC Bank is now offering a 3.50 per cent interest on fixed deposits (FDs) with a maturity period of 7-29 days. The interest rate on FDs maturing in 15 days to 29 days has been increased to 3.50 per cent.

Check out the table on Domestic/NRO and NRE Non-withdrawable Fixed Deposit rates.

Check out the following tables for renewed HDFC Bank FD interest rates.

The bank may have taken the decision against the backdrop of inflationary trends. The increased rates of interest are applicable on FDs starting from December 1. HDFC Bank has increased the rates by 10 basis points on FDs ranging across multiple tenures.