HDFC Bank increases interest ratesIndia’s largest listed bank, HDFC Bank has raised interest rates on its deposits in keeping with the overall increase of rates in the economy. The move comes almost exactly a month after SBI raised rates on its deposits, which we wrote about here.

The bank has hiked rates on deposits for the specific time periods, for deposits below Rs 1 crore. Senior citizen depositors at HDFC Bank (those above 60) get a 0.5% more than the rates mentioned below.

Tenure Old HDFC Bank Rate New HDFC Bank Rate SBI Rate ICICI Rate Axis Rate
1 yr 6.75 6.85 6.4 6.6 6.75
1 yr 17 days – 2 yrs 6.25 7 6.4 6.6-6.75 6.75-6.9
2 yrs 1 day – 2 yrs 15 days 6 7
2 yrs 16 days 6 7
2 yrs 17 days – 3 yrs 6 7 6.6 6.5 6.9
3 yrs 1 day – 5 yrs 6 7 6.7 6.5 6.9
5 – 10 yrs 6.5 6.5 6.75 6.5 6.9

Note: All figures in percentages. Different banks use slightly different tenures which we have not specified, please look up the bank website before making a final decision.

The latest rate hikes make HDFC Bank the most competitive offering in India’s retail deposit space, except for the 5-10 years bucket where SBI wins out.

Investors who are willing to stomach some risk can consider liquid or ultra-short term funds for investment horizons up to one year. For a 1-3 year period, investors can consider short-term debt funds.

If investors can compromise on liquidy, they can also look at company fixed deposits. DHFL is offering rates of 7.7-8.05% on deposits for tenures similar to the ones specified above as we note here. For the entire spectrum of investment options available such as post office deposits, Kisan Vikas Patra, National Savings Certificates, Govt of India 7.75% bonds and others, please look at our primer on investment alternatives in India.

Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at