The Reserve Bank of India (RBI) in its latest revision of the interest rates, had hiked up the Repo Rate by 35 basis points. This took the Repo Rates from 5.9 to 6.25.
REPO RATE : Repo Rate is the rate at which the Central Bank lends money to the commercial banks for a short period of time.
There has been an upward increasing trend in the fixed deposit rates because of the multiple Repo Rates which were announced by the Reserve Bank of India. Since may 2022. RBI has hiked the repo rate by 35 basis points. It took the interest rates from 5.9 to 6.25 percent . This was discussed in the monetary policy meeting in December. The hike in the repo rate is the 5th consecutive Repo rate since may last year.
In the Monetary Policy Meeting of the RBI, some commercial banks have uplifted the interest rates for fixed deposits that are under Rs. 2 crore. All these revised interest rates came into effect on 10 January.
Following are the banks that have increased their FD interest rates :
Punjab National Bank
The Fixed Deposit Rates of Punjab National Bank were increased on 1 January . It increased the rates by 50 basis points.
Indian Oversees Bank .
Indian Oversees Bank has increased the FD Interest Rates by up to 45 basis points on a tenor of 444 days. But the rates for the remaining tenor have not changed by the bank. The bank is now offering a maximum interest rate of 7 percent for the 444 days.
The UCO Bank has increased the Fixed Deposit Interest Rates on various Tenures. The Interest Rates range from 1 to 5 years, up to 50 basis points. For the deposits that are maturing in seven to nine days, the UCO Bank will continue offering the rates at 2.90 percent.
For the deposits that are maturing in thirty to forty five days, the bank will offer 3 percent . This rate is continued the same.
Those that are maturing in the following forty six to one twenty days , the rate is going to be 4 percent . Similarly , those with the maturity dates coming in the next 121-150 days , the rate is going to be 4.50 percent.
Bank of India.
After the revision of the Repo Rates by RBI, The bank of India has raised the interest rates on some special fixed deposits. It is done for 444 days that are less than 2 crores.
The rates on other fixed deposits are offered 3 to 6.75 percent to the regular customers.