Housing Development Financial Corporation (HDFC) bank has now reduced the interest rate by 10 basic points (bps) for deposits with a maturity of one or two years. The new interest rates came into effect from November 13, 2020. The previous revising on interest rate happened on October 22, 2020. Since June this is the fourth time that the Housing Finance has slashed its deposit rate. Now the interest rate for one year one day to two years has been reduced from 5% to 4.90%. As of now, no change has been mentioned for the rate of term deposits.
The good news is that senior citizens will continue to receive an interest rate as high as 50 bps compared with the general public. The interest rate on Fixed Deposits for senior citizens varies from 3% to 6.25% for a maturity period of 7 days to 10 years.
Due to a general fall in rate and easy liquidity corporate deposits rate are likely to have a fall depicting a downward trend. For those looking for 7 to 14-day tenure, Housing Development Finance Corporation is providing an interest rate of 2.5%, which is similar to the interest rate for deposits with 15 to 29 days of maturity. For tenure of 30 to 45 days, 46 to 60 days, and 61 to 90 days the depositors will be able to fetch an interest rate of 3% and 3.50% on deposits for 91 days to 6 months. If the deposits are for 6 months 1 day to 9 months or 9 months 1 day to less than a year the interest rate will be 4.40%.
An interest rate of 4.90% will be provided for deposits with a 1 year maturity period, similar to the case with deposits having 1 year 1 day to 2 years maturity period. Earlier they were given a higher interest rate of 5%. For 2 years 1 day to 3 years deposit of 5.15% is available. 5.30% and 5.50% of interest will be given for deposits with 3 years 1 day to 5 years and 5 years 1 day to 10 years deposit respectively.
Currently, 5.50 % is the highest rate of interest available in Housing Development Finance Corporation Limited (HDFC).