New Delhi, April 26: The HDFC Bank has increased interest rates on term deposits by up to 100 basis points in a bid to grow its deposits. The bank has also hiked interest rates on fixed deposits (FDs) under Rs 1 crore. According to the bank’s website, the new rates are effective from April 24. With the recent surge, the bank is offering a flat return of 7 per cent on all maturities of over one year. According to a report by TOI, senior citizens can earn up to 7.5 per cent and bulk depositors (Rs 1 crore and above) get even more.

It must be noted that HDFC Bank's move comes after the State Bank of India (SBI) hiked rates of bulk deposits by up to 50 basis points recently. The new rates are effective from April 24, according to the bank’s website.  "We are glad to inform you that the Fixed Deposit interest rate for deposits of more than or equal to Rs 1 crore has been increased to 7.25% from 7.10% earlier, for a tenure of 1 year 5 days to 3 years. This is effective from April25-April 27, 2018.” the bank emailed its customers.

According to statistics released by the Reserve Bank of India (RBI), the bank deposits, as on March 30, 2018, stood at Rs 115 lakh crore. This is an increase of 6.7 per cent as against a growth rate of 15.3 per cent in the previous fiscal. Against this, bank advances grew 10.3 per cent to Rs 87 lakh crore, higher than 8.2 per cent in the previous fiscal.

(The above story first appeared on LatestLY on Apr 26, 2018 01:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).