Fixed deposit (FD) interest rates have been raised by private sector lender ICICI Bank for FDs up to Rs 3 crore. With a duration of two years instead of fifteen, ICICI Bank's FD interest rate has raised by five basis points, placing it in the highest interest rate category of 7.25 percent—a revision upward from 7.20 percent.

According to ICICI Bank, the new FD rates take effect today, August 6, 2024. According to the bank, senior citizens who have FDs with a duration of 15 to 18 months get an additional 0.55% interest (less than Rs. 3 crore).

Effective August 6, 2024, the interest rates for fixed deposits with premature withdrawal options are as follows for both general and senior citizens

For tenures ranging from 7 to 29 days, the interest rate is 3.00% for general citizens and 3.50% for senior citizens. For deposits held from 30 to 45 days, the rates increase to 3.50% and 4.00% respectively. The rates for the 46 to 60-day period are set at 4.25% for general citizens and 4.75% for senior citizens. For tenures of 61 to 90 days, the interest rates are 4.50% and 5.00%, respectively. Deposits held from 91 to 184 days offer rates of 4.75% for general citizens and 5.25% for senior citizens. For the period of 185 to 270 days, the rates are 5.75% and 6.25%. Moving to 271 days to less than 1 year, the rates are 6.00% for general citizens and 6.50% for senior citizens. From 1 year to less than 15 months, the rates rise to 6.70% and 7.20%, while for 15 months to less than 18 months, they are 7.25% and 7.80%. The rates remain at 7.25% for general citizens and increase to 7.75% for senior citizens for the 18 months to 2-year tenure. For deposits ranging from 2 years and 1 day to 5 years, the interest rates are 7.00% for general citizens and 7.50% for senior citizens. The rates for 5 years and 1 day to 10 years are 6.90% and 7.40%, respectively. Additionally, the 5-year Tax Saver FD offers rates of 7.00% for general citizens and 7.50% for senior citizens.

The rate increase occurs two days before the RBI's scheduled bi-monthly statement of monetary policy on August 8, 2024. We started today's three-day RBI MPC meeting.

Since it last increased the repo rate in February 2023, the RBI has kept it at 6.5 percent. There is a lot of conjecture that the central bank will hold onto the main interest rates for a further nine times.