PNB, Kotak Mahindra, Bandhan: Banks that have raised FD rates in 2023

Due to high inflation, the Reserve Bank of India has been announcing hikes of policy rates for several months. However, despite the policy rates, several banks have increased their fixed deposit rates for funds under Rs 2 crore in January. Fixed deposits are still one of the most popular instruments of savings. Many people opt for this mode of savings to park their funds for a short duration. The money remains safe and they give decent returns. Long-term fixed deposits also provide income tax benefits. Let's check the list of banks that have increased their interest rates.

Punjab National Bank or PNB increased its fixed deposit rates on the New Year day. PNB increased the rates by 50 basis points on fixed deposits.

Indian Overseas Bank announced a hike in FD rates for fixed deposits with tenure between 7 and 90 days. The increase was 75 basis points. Its maximum interest rate is for a fixed deposit of 444 days. The interest rate for that is 6.55 percent. 

Yes Bank has also revised its interest rates for fixed deposits between 7 days and 120 months. It offers interests in the range of 3.25 and 7 percent. For senior citizens, the rates range from 3.75 percent and 7.75 percent. For a 30 months time period, Yes Bank's FD rate is 7.50 percent; for seniors, it is 8 percent.

Kotak Mahindra Bank increased its FD rates by 50 basis points. It is offering a health interest rate of 7 percent for FDs ranging between 390 days and two years. For senior citizens, the rate is 7.50 percent.

Bandhan Bank is a relatively new player in the FD market. It offers between 3 and 5.85 percent interest rates on FDs with a time period between 7 days and 10 years. For FD of 600 days, it offers 7.50 percent and 8 percent interest rates.

Indian Overseas Bank also increased the FD rates by 75 basis points on short term FDs with time period upto 90 days.