The rate hike makes retail deposits above one year tenure and up to Rs 1 crore more attractive for the it’s customers. With this, retail deposits of one year will now attract a rate of 6.5 per cent per annum against the earlier 6 per cent.
For deposits of tenure 2 years, three years and six years, rates offered are 7 per cent, 7.25 per cent and 7.50 per cent respectively. The new rates are up by 0.25 per cent over the currently-offered rates, the bank said. Banking analysts said that this move in all likelihood would prompt other banks to announce a hike in their deposit rates with a view to protect their margins.
FCNR (B) rates
The bank has hiked its interest rates on foreign currency non-resident bank deposits and non-resident external rupee term deposits effective from April 1.
FCNR(B) deposits in US$ having one year to less than two-year maturity will now attract a rate of 1.92 per cent from 1.84 per cent earlier, while deposits for 2 years to less than 3 years will carry 2.24 per cent rate (2.08 per cent), the bank said in a release.
Similarly, deposits with three years-four years, 4-5 years, and 5 years tenures will carry rates of 2.84 per cent (2.69 per cent), 3.34 per cent (3.20 per cent) and 3.75 per cent (3.62 per cent) respectively, the bank said in an official statement.