Public sector lenders, IDBI Bank and Oriental Bank of Commerce have also entered into the fixed deposit race and raised interest rates on term deposits.

IDBI Bank has declared a rise by as much as 75 bps across different maturities while OBC went for a rise upto 25 bps. The rate hike has been done keeping in mind "credit demand, inflation and liquidity scenario", IDBI said.

The highest interest offered by IDBI Bank will be 9% following this revision. In case of deposits upto Rs 15 lakhs, the interest rate is 8% for deposits of tenor of 270 days and above, but less than one year.

Also, the rate is 8.5% for deposits with a tenor between 366 days and 499 days. The 500 days deposit will now fetch the depositor an interest of 9%.

Another major hike has been made for deposits of 500 days to 1099 days where interest will be 9% following the revision.

In case of OBC, revision has been made in three categories namely less than Rs 15 lakh, Rs 15 lakh-Rs 1 crore and Rs 1 crore-Rs 5 crore.