The banks that were left behind are doing their bit to catch up with the market trend; most of the lenders have already updated their fixed deposit rates after the hike in the policy rates by Reserve Bank last month, now it is Federal Bank that has hiked its deposit rates.
Federal Bank has hiked the deposit rates across various maturities and is also offering extra 0.50 percent interest rates to the senior citizens.
The revised rates are applicable from June 07.
Responding according to the requirement of market, private sector lender Dhanlaxmi Bank has hiked deposit rates across various maturities by a maximum of 50 basis points or 0.50 percent. The bank is also offering and extra 0.50 percent interest rates for the senior citizens.
"We have increased interest rates on select term deposits to offer more investment opportunities to our customers. The increase in deposit rates would help our customers to maximise returns on their savings,” said the Head of Branch Banking and NRI Businesses of Dhanlaxmi Bank.
After the revision the a deposit for a maturity period will attract an interest rate of 7.00 percent as compared to the earlier of 6.50 percent, interest rate for a maturity period of 366 to 499 days has also been increased to 9.00 percent from 8.60 percent.
The revised rates are applicable from June 6.
Since April 2010 loans against bank fixed deposits have scaled up by around 25 percent as recorded in April 2011 in accordance to the data compiled by Reserve Bank of India.
One of the driving factors behind such a sudden traffic in the stream is that that it is much less expensive as compared to the conventional loan schemes and not only that but it also shields them against the constant fluctuations in the market rates. The practice is gaining popularity and the figures under the section are expected to improve further.
A senior official from Union Bank of India said “The net outgo for the borrower is only 2 per cent in the case of loans against FDs. So, instead of breaking his FD, he could take a loan against it.”
Major public sector lender, Bank of India has hiked deposit rates across various maturities by a maximum of 250 basis points or 2.5 percent. Most of the leading banks have already revised their deposit rates, the revisions are a result of the hike in the policy rates from Reserve Bank of India.
After the hike in the deposit rates of the Bank of India, now the deposit for a maturity period of 15-30 days will attract an interest of 4.50 percent as compared to the 2.75 percent, similarly rates have been hiked across various other maturities that will allow the investors to earn more in their deposits.
The revised deposit rates are applicable form 1st June.
