Major private banks reduce interest rates on fixed deposits

Close on the heels of a reduction in lending and deposit rates by public sector State Bank of India, major private sector rivals such as ICICI Bank and HDFC Bank have reduced interest rates on fixed deposits by at least 50 basis points.

SBI had reduced its deposit rates by as much as 100 basis points on fixed deposits of certain maturities while the reduction by the private sector lenders was just a sequel to SBI's action.

Following the reduction in deposit rates the maximum rate that ICICI Bank offers has come down to 8.75 per cent from 9.25 per cent earlier. Against this, SBI is offering a maximum interest rate of 8.50 per cent

The bank has reduces rates on term deposits across all maturities ranging from 91 days to less than five years.

However, for shorter terms of seven to 45 days, the bank is increased deposit rates by 50-75 basis points.

HDFC Bank has cut deposit rates in the 7 days to 5-year bracket by 25 to 50 basis points.