HDFC raises fixed deposit rates by up to 25 bps

HDFC Ltd has raised interest rates on FDs maturing between 33 and 99 months by up to 25 bps. (Photo: Mint)

NEW DELHI: If you are looking to invest your money in AAA-rated fixed deposits (FDs), you can consider HDFC Ltd. The mortgage lender has raised interest rates on FDs maturing between 33 and 99 months by up to 25 basis points (bps). One bps equals 0.01%. The rates are effective 30 March.

The 33-month fixed deposit will now fetch a 6.2% annualised return. The 66-month fixed deposit and 99-month fixed deposit will offer 6.5% and 6.65% annualised return respectively. Besides, senior citizens will get a 25 bps additional rate over and above the prevailing interest rates.

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HDFC has AAA rating from both CRISIL and ICRA for 25 consecutive years. “These FD investments are meant for conservative investors who do not want to take a risk and are ok with it being taxed,” said Mrin Agarwal, Director,

According to financial planners, a common approach that an investor must follow while investing in any debt products is to look for safety, liquidity and then returns.

Nishith Baldevdas, founder, Shree Financial, a SEBI Registered Investment Advisor, said investors who have filled their safety and liquidity buckets and wants to take some debt exposure just for returns can invest in such type of FDs. “It is also pertinent to note that investors shouldn’t compare these FDs with bank FDs. These top-rated FDs don’t provide much liquidity when it comes to premature closure,” he added.

The government, meanwhile, has withdrawn the order, issued on Wednesday, which had cut interest rates on small saving schemes such as Public Provident Fund (PPF) and National Saving Certificate (NSC). Interest rates on these are now same as that of March.

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