New Delhi: There is some good news for retired people and those dependent on interest income as banks have started increasing their fixed deposit rates following RBI’s decision to hike the short term lending rate by 0.25%.
Oriental Bank of Commerce yesterday revised their fixed deposit rates for various maturities and raised the rates for its special deposit scheme Asha Kiran (FDs for 400 days) to 9.75% for senior citizens.
This is probably the highest interest rate being offered by the city based public sector lender on 13-month deposit.
Though the senior citizens would get a rate of 9.75%, others will receive 9.25% for 400-day fixed deposit from OBC.
Even the new generation private sector lender Yes Bank increased the deposit rates by 0.5% across all maturities.
After the recent revision of interest rates by Yes Bank, senior citizens would get a maximum of 10% on fixed deposits with a maturity of one year to 18 months. The others would receive a return of 9.5%.
Country’s largest public sector lender, State Bank of India, also revised fixed deposit rates upward by up to 0.5% for selected tenures effective June 1.
SBI increased fixed deposits rate for 5-10 years by 0.5% to 9% while 3-5 years tenure was hiked by 0.35%. Senior citizens will get 0.5% more.