Most of India’s banks have raised deposit rates as a step to mobilise deposit growth to fund a rising demand for credit. The latest to join the bandwagon is HDFC Bank, which has hiked most of its retail fixed deposit rates by 40-75 basis points (bps) with effect from 14 December.

Non-senior citizens can earn an interest rate of 7% on deposits maturing in 15 months upwards. The bank has offered this rate on tenures such as 15 months to less than 18 months; 18 months to less than 21 months; 21 months to two years; 2 years 1 day to 3 years; 3 years 1 day to 5 years; and 5 years 1 day to 10 years.

For 12 months to less than 15 months, the FDs will fetch 6.50% interest rate. Deposits maturing between 9 months 1 day to less than 1 year will get 6% interest rate. The bank will offer 5.75% interest on deposits maturing in 6 months 1 day to less than 9 months.

The interest rate is of 3% each on fixed deposits with a maturity period of 7-14 days, and 15-29 days. For 30-45 days, the rate is 3.50%, and 4.50% for each of these maturity periods: 46-60 days, 61-89 days, and 90-180 days.

For senior citizens, HDFC Bank offers 50 bps additional interest than the standard rates on fixed deposits maturing within 7 days to 5 years. They will now get interest at 3.5%-7.75% on FDs maturing in 7 days to 10 years.

Meanwhile, State Bank of India, the country's largest lender, has raised deposit rates by 15-100 bps across tenors.