DBS Bank hikes rates on fixed deposits

Several domestic banks have raised their fixed deposit rates since the policy rates were increased by the Reserve Bank of India (RBI).

DBS Bank hikes rates on fixed deposits
The bank will offer additional interest rate of 50 basis points (bps) to senior citizens on fixed deposits.

DBS Bank on Friday increased interest rates on fixed deposits effective Thursday. The bank will now offer interest rates in the range of 5.75-6.25% on domestic fixed deposits and NRE deposits maturing in 1 to 5 years, as per information on its website. The interest rate offered by the bank on 1 year domestic deposit stands at 5.75%. Shorter duration deposits ranging from 7 days to less than a year will receive interest rates in the between 2.5-4.75%. The bank will offer additional interest rate of 50 basis points (bps) to senior citizens on fixed deposits.

Several domestic banks have raised their fixed deposit rates since the policy rates were increased by the Reserve Bank of India (RBI). Typically, deposit rate offered by banks increase after policy rate hikes. However, some private sector banks are not planning to aggressively push rates to raise deposits. Total deposits with banks stand at Rs 168.1 trillion as of fortnight ended July 15.

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