Indian banks raises fixed deposit rates
January 4, 2011‐ Mumbai, India
Barely two months have passed and banks are back with their upping of deposit rates, particularly fixed deposit rates, ushering back an era of high interest returns for the safety-looking Indian depositors. Three banks - IDBI, Oriental Bank of Commerce and Bank of India, have announced on Tuesday, January 4, 2011 of their new deposit rates.
Oriental Bank of Commerce and IDBI has upped their deposit rates by 25 - 50 basis points depending on the deposit.
Bank of India increased its deposit rates by up to 0.75% depending on the deposit product and period. A deposit for 180 days to 269 days (for Rs. 1 lakh and over but less than Rs. 15 Lakhs) at Bank of India will now give 7.25% instead of the earlier rate of 6.50%. Earlier, the banking mammoth State Bank of India and HDFC Bank has made a similar announcement of the upward revision of the fixed deposit rates. The upward revision of deposit rates is great news, particularly for senior citizens who put in the most of their money in fixed deposit schemes so as to enjoy stable fixed income with higher interest return. A 1 to 2 year deposit by a senior citizen will now give a return of 9% interest.
Experts in the banking industry says that the era of upward revision of interest rates has just begun and that more banks will follow suite going forward.
Other top banking news
- Bharatiya Mahila Bank aims at adding 55 new branches in FY 2014-15 (March 11, 2014)
- Indian banking sector to be hit with Microsoft withdrawal of support for XP (March 4, 2014)
- Withdrawal of old Currency Notes in circulation in India (February 22, 2014)
- Linking of MNREGS with the Banking System (February 22, 2014)