ICICI, Kotak Mahindra and a few banks hike interest rate on FD: Check here

Mumbai, May 4: The RBI on Wednesday hiked the benchmark lending rate by 40 basis points (bps) to 4.40 per cent to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months.

The Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das also raised the amount of deposits banks are required to maintain a cash reserve by 50 bps to 4.5 per cent to suck out Rs 87,000 crore of liquidity from the banking system.

The CRR hike will be effective from May 21.

The repo rate hike is expected to make the home loan and auto loans, costly. It also means the rates of fixed deposit interest are expected to move upwards and a few banks have already announced that it was increasing interest rates on fixed deposit, immediately after the RBI's repo rate hike.

Check out which bank is now giving highest interest on FD:

In a notification, the ICICI has announced that is in increasing the interest rates up to 25 basis points, or 0.25 per cent. Click here to find out new interest rates on FD

Kotak Mahindra Bank has hiked the interest rate on FD by 30 basis points and 35 basis points respectively for the tenure of 390 days and 23 months. Check the new interest rates

Whereas Bandhan Bank hiked the interest rate on deposits by 50 basis points for one year to 18 months and above 18 months to less than two years tenure deposits. The bank is yet to update the new interest rates and it will be updated on its website.

Jana Small Finance Bank and Bank of Baroda have also announced new interest rates on fixed deposits, but the new rates are yet to reflect on their websites.