There is some good news for retired persons and those dependent on interest income as banks have started increasing their fixed deposit rates following the decision of the RBI to hike the short term lending rate by 0.25%.
Oriental Bank of Commerce has revised its 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.
Another Mumbai-based lender Bank of India also increased deposit rates up to 0.5% for various maturities.
For deposits having a maturity of one year to less than two years, the revised rate stands at 9.15%, against the earlier rate of 8.50%, while for deposits ranging from two to three years, the new rate is 9.25% as against earlier rate of 8.75%.
Similarly, fixed deposits of Bank of India having a maturity of three to five years will earn 9.50% interest, against the earlier 8.75%.
"The rates have been revised with a view to mobilise funds from deposits in the beginning of the financial year. We will review our rates by June 30, after which they might be revised again," the BOI official had said.
There would be a case for further upward revision of fixed deposit rates in case the inflation, as projected by many analysts, goes up to 10%.
Moreover, the banks would have to raise fixed deposit rates to retain the deposit base, says brokerage firm Edelweiss Capital in its recent analysis on impact of repo rate hike on the banking sector.
The study further pointed out that following recent hike in repo rate, bottomline of those banks which are dependent on wholesale money market for funds would come under pressure.
New Delhi: There is some good news for retired persons and those dependent on interest income as banks have started increasing their fixed deposit rates following the decision of the RBI to hike the short term lending rate by 0.25%.
Oriental Bank of Commerce has revised its 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.
Another Mumbai-based lender Bank of India also increased deposit rates up to 0.5% for various maturities.
For deposits having a maturity of one year to less than two years, the revised rate stands at 9.15%, against the earlier rate of 8.50%, while for deposits ranging from two to three years, the new rate is 9.25% as against earlier rate of 8.75%.
Similarly, fixed deposits of Bank of India having a maturity of three to five years will earn 9.50% interest, against the earlier 8.75%.
"The rates have been revised with a view to mobilise funds from deposits in the beginning of the financial year. We will review our rates by June 30, after which they might be revised again," the BOI official had said.
There would be a case for further upward revision of fixed deposit rates in case the inflation, as projected by many analysts, goes up to 10%.
Moreover, the banks would have to raise fixed deposit rates to retain the deposit base, says brokerage firm Edelweiss Capital in its recent analysis on impact of repo rate hike on the banking sector.
The study further pointed out that following recent hike in repo rate, bottomline of those banks which are dependent on wholesale money market for funds would come under pressure.
Oriental Bank of Commerce has revised its 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.
Another Mumbai-based lender Bank of India also increased deposit rates up to 0.5% for various maturities.
For deposits having a maturity of one year to less than two years, the revised rate stands at 9.15%, against the earlier rate of 8.50%, while for deposits ranging from two to three years, the new rate is 9.25% as against earlier rate of 8.75%.
Similarly, fixed deposits of Bank of India having a maturity of three to five years will earn 9.50% interest, against the earlier 8.75%.
"The rates have been revised with a view to mobilise funds from deposits in the beginning of the financial year. We will review our rates by June 30, after which they might be revised again," the BOI official had said.
There would be a case for further upward revision of fixed deposit rates in case the inflation, as projected by many analysts, goes up to 10%.
Moreover, the banks would have to raise fixed deposit rates to retain the deposit base, says brokerage firm Edelweiss Capital in its recent analysis on impact of repo rate hike on the banking sector.
The study further pointed out that following recent hike in repo rate, bottomline of those banks which are dependent on wholesale money market for funds would come under pressure.
New Delhi: There is some good news for retired persons and those dependent on interest income as banks have started increasing their fixed deposit rates following the decision of the RBI to hike the short term lending rate by 0.25%.
Oriental Bank of Commerce has revised its 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.
Another Mumbai-based lender Bank of India also increased deposit rates up to 0.5% for various maturities.
For deposits having a maturity of one year to less than two years, the revised rate stands at 9.15%, against the earlier rate of 8.50%, while for deposits ranging from two to three years, the new rate is 9.25% as against earlier rate of 8.75%.
Similarly, fixed deposits of Bank of India having a maturity of three to five years will earn 9.50% interest, against the earlier 8.75%.
"The rates have been revised with a view to mobilise funds from deposits in the beginning of the financial year. We will review our rates by June 30, after which they might be revised again," the BOI official had said.
There would be a case for further upward revision of fixed deposit rates in case the inflation, as projected by many analysts, goes up to 10%.
Moreover, the banks would have to raise fixed deposit rates to retain the deposit base, says brokerage firm Edelweiss Capital in its recent analysis on impact of repo rate hike on the banking sector.
The study further pointed out that following recent hike in repo rate, bottomline of those banks which are dependent on wholesale money market for funds would come under pressure.
