In July last year, the RBI had proposed an additional five percent ‘run-off factor’. This means the percentage of deposits that the bank expects to be withdrawn in times of stress. In some countries, it was found that in a situation of financial stress, depositors withdrew their money immediately using digital banking.

The revised framework has been brought keeping that in mind. RBI said in a circular that from April 1, 2026, banks will have to allocate an additional 2.5 percent ‘run-off factor’ for retail deposits with internet and mobile banking facilities (IMB).

RBI said the decision was taken following feedback from various stakeholders on the draft guidelines on ‘Basel-III framework on liquidity standards – review of liquidity coverage ratio (LCR) – cut-off on high quality liquid assets (HQLA) and ‘run-off rates’ on certain categories of deposits’ released last July.

According to the latest guidelines, “The bank will have to set an additional ‘run-off factor’ of 2.5 per cent for retail deposits with internet and mobile banking facilities (IMB). This means that there will be a 7.5 per cent ‘run-off factor’ for stable retail deposits with IMB facility and a 12.5 per cent run-off factor for less stable deposits with IMB. Currently it is five per cent and 10 per cent respectively. ”

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In such a situation, which bank is getting the highest interest on an amount of less than Rs 2 crore for a period of 7 to 10 years? To understand this, we checked the FD rates of SBI, HDFC BANK, AXIS BANK, IDFC FIRST BANK and RBL BANK, which are higher than others in terms of interest offered.

In which bank is getting more interest?

Major banks of the country are offering up to 7.8% interest on FDs for a period of 7 days to 10 years. Now let us understand from the figures of returns in terms of investment of Rs 1 lakh, which bank is getting the highest interest?

• RBL Bank: For general customers, a minimum interest of up to 3.25% is being offered for a period of 7 days. While paying 7.80 percent interest annually for a period of up to 10 years. In this context, an investment of Rs 1 lakh will increase to Rs 2.16 lakh in a period of 10 years.
• IDFC FIRST BANK: For general customers, a minimum interest of up to 3.50 per cent is being offered for a period of 7 days. While paying 7.50 percent interest annually for a period of up to 10 years. The investment amount of Rs 1 lakh will increase to Rs 2.10 lakh on the calculation of maximum interest in a period of 10 years. 
• AXIS BANK: For general customers, a minimum interest of up to 3.50 per cent is being offered for a period of 7 days. While paying 7.26 percent interest annually for a period of up to 10 years. In terms of maximum period and interest, the investment of Rs 1 lakh will be Rs 2.05 lakh.  
• SBI: For general customers, a minimum interest of up to 3% is being offered for a period of 7 days. While paying 7.10 percent interest annually for a period of up to 10 years. If you invest Rs 1 lakh, then after 10 years at an annual interest rate of 7.10 percent, your amount will increase to Rs 2.02 lakh. 
• HDFC Bank: For general customers, for a period of 7 days, a minimum interest of up to 3 percent is being offered. While paying 7.10 percent interest annually for a period of up to 10 years. With an annual return of 7.1%, an investment of Rs 1 lakh will grow to Rs 2.02 lakh over a period of 10 years.

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With the Reserve Bank increasing the prime rates, banks are increasing the interest rates to attract more and more deposits. Earlier, Axis Bank had also announced to increase its FD rates last week. In the last one month, many other banks including SBI, HDFC Bank have increased the deposit rates.

How much did Bank of Baroda increase rates

The bank said on Wednesday that domestic and NRO (Resident Ordinary) fixed deposits of one year tenor will now attract 5.50 per cent interest, as against 5.30 per cent earlier. Similarly, the interest rate on deposits with a tenor of 400 days to three years has been increased from 5.45 per cent to 5.50 per cent. The new rate for tenures ranging from three years to 10 years is 5.65 per cent, which is 0.15 per cent higher than before.

The bank said that the interest rate on one-year deposit for senior citizens will be 6 percent, which was earlier 5.80 percent. Similarly, resident senior citizens will now get interest ranging from 5.95 to 6.50 percent for other tenures. It has increased by 0.15 percent. Bank of Baroda has also increased the interest rate on schemes like Baroda Tax Savings Fixed Deposit and Baroda Advantage Fixed Deposit.

There is further growth forecast Further increase in interest rates is expected in the coming times. Actually, at the end of this month, the Reserve Bank will announce its policy review. With the inflation rate once again reaching 7 percent, it is expected that the Reserve Bank may increase the key rates further.

If this happens, banks can offer better rates to customers to attract deposits. Due to which the gift of increase in deposit rates can also be given in the festive season.

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RBI had increased the repo rate on 5th August. After this, many banks and NBFC institutions have increased the interest rates of FD. The increase in FD interest rates by both the banks is applicable from today (August 17).

Public sector bank PNB has increased the interest rate by 0.20 percent on FDs of more than one year. The bank will now pay 5.50 percent interest on them. The bank has increased the interest rates by 0.15 percent on FDs of more than 1 year but less than 2 years. These have been increased from 5.45 percent to 5.50 percent.

On FDs of more than two years and up to 3 years, the bank will pay 5.60 percent interest. These have increased by 0.10 percent. For 3 years to less than 5 years, now the interest rates of the bank’s FD will remain at 5.75 percent. Deposits maturing in 1,111 days will get 5.75 percent interest. At the same time, the interest rates for more than 5 years to 10 are 5.60 percent. The bank will give an additional 0.50 percent interest to senior citizens.

How much interest rate Kotak has increased

Kotak Mahindra has increased its interest rates on FD by 0.15 percent. The bank has increased the interest rates by 0.15 per cent to 5.75 per cent for a period of 365 to 389 days. From 390 to three years FD will now get 5.90 percent interest.

Apart from this, Kotak Mahindra Bank has not changed the interest rates on deposits for a period of three years to 10 years. The interest rate for this will remain 5.90 percent. The bank has also increased the rates of its recurring deposit (RD). The interest rates on recurring deposits for a tenure of 6 months have gone up by 0.25%.

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