Last Updated: January 12, 2023, 18:44 IST
Fixed deposit (FD) interest rates have shown an upward trend due to multiple repo rates announced by the Reserve Bank of India since May 2022. RBI, in the latest revision, hiked the repo rate by 35 basis points, taking it to 6.25 per cent from 5.9 per cent after its monetary policy meeting in December. This is the 5th consecutive repo rate hike since May last year. After the RBI monetary policy announcement, a few banks have initiated a hike in the interest rate for FDs under Rs 2 crores. The revised rates came into effect on January 10. Here’s a look at banks that revised their FD rates after RBI’s repo rate hike.
Indian Overseas Bank
Indian Overseas Bank has raised interest rates by up to 45 basis points on a tenor of 444 days. However, interest rates for the remaining tenor have not changed by the bank. For 444 days, the bank is now offering a maximum interest rate of 7 per cent.
UCO bank has increased the interest rates on various tenures, ranging from 1 year to 5 years and above, by up to 50 bps. The bank will continue to offer 2.90 per cent interest on deposits maturing in seven to nine days and 3.00 per cent on deposits maturing in 30 to 45 days. The bank will continue to offer interest rates of 4 per cent on deposits maturing in the next 46–120 days and 4.50 per cent on deposits maturing in 121–150 days.
Bank of India
The Bank of India raised interest rates on special fixed deposits with buckets of 444 days and less than Rs 2 crores. The bank offers an interest rate of 7.05 per cent to regular customers and additional 50 basis points to senior citizens. Other fixed deposits with maturities ranging from seven days to ten years offer 3 to 6. 75 per cent interest rates to regular customers.
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