Danlaxmi Bank and Karun Vysya Bank revised their fixed deposit (FD) interest rates during the week ending November 23, 2024. For FD investors, it is time to consider booking FDs at the current rates before banks start reducing them, as experts believe a rate cut soon by the Reserve Bank of India (RBI). Banks' interest rates are directly linked with the repo rate. An increase or decrease in it is followed by the banks. RBI last changed the repo in February 2023. Since then, it has kept it at 6.50 per cent. While there are speculations of a rate cut in December, considering the high consumer price inflation data for October, it may be delayed for some more time.

FD rates would reduce once the repo is cut, and thus, investors may explore FDs at current rates before the rates are cut to suit their portfolio requirements.

Here are the revised rates for these two banks. 

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Dhanlaxmi Bank:

This private sector bank revised the deposit rates on November 18, 2024. It offers an additional 0.50 per cent interest rate to seniors (60 years and above) for all FDs of one year and above. The interest rates for senior citizens FDs are:

• 7.25 per cent for one year to two years

• 7.75 per cent for 555 days

• 7.00 per cent for above two years to three years

• 7.75 per cent for above three years to five years

• 7.10 per cent for above five years to 10 years.

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These are rates for callable FDs where premature withdrawal is allowed. However, there is a penalty of 0.5 per cent on FDs of less than Rs 5 lakh, and for FDs of Rs 5 lakh and above, the penalty is higher at one per cent, upon premature closure.

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Karur Vysya Bank:

KVB revised its term deposit rates on November 22, 2024, and offers a maximum of 8.10 per cent to senior citizens. Here are its rates for senior citizens for other tenures:

• 7.80 per cent for 333 days

• 7.40 per cent for 1 year to 443 days 

• 8.00 per cent for 444 days

• 7.40 per cent for 445 up to 759 Days

• 8.10 per cent for 760 days special deposit

• 7.40 per cent for 761 Days up to 5 years

• 6.65 per cent for above five years up to 10 years.