December 2023 FD Surge: Banks Boost Rates Despite RBI's Status Quo

Amidst the Reserve Bank of India holding the repo rate at 6.5%, several banks are bucking the trend by raising fixed deposit rates in December 2023. Bank of India increased rates for various tenures, peaking at 7.25% for a 1-year deposit. Kotak Mahindra Bank elevated rates for three to five-year tenors, offering up to 7.80% for senior citizens. Federal Bank, too, joined the surge, offering a maximum of 8.15% for 500-day deposits for senior citizens. Despite the prevailing economic conditions, these banks are enticing depositors with competitive interest rates.

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