Various banks in India have recently hiked the interest rates on their fixed Deposits (FDs). The banks with revised FD rates include Punjab National Bank (PNB), UCO Bank, Bank of Baroda, Indian Overseas Bank, and Bank of India. This development comes after the Reserve Bank of India (RBI) recently hiked the repo rate on 7 December. The repo rate has been increased by 35 bps to 6.25 per cent. Banks across the country have been raising FD rates since RBI began hiking repo rate in May in its attempt to contain inflation. PNB has hiked the interest rates on fixed deposits (FDs) below Rs 2 crore. The revised rates came into effect on 19 December.
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The FD rates have been increased by 95 basis points (bps) for the tenure of 666 days. The interest rate has been raised by 40 bps on deposits with a maturity period of above 3 years to 10 years.
PNB revised FD rates
PNB has increased the interest rate to 7.25 per cent from 6.3 per cent for the general public on deposits maturing in 666 days. The bank has hiked the interest rate to 7.75 per cent from 6.8 per cent for senior citizens on FDs with the same tenure. It has raised the rate to 8.05 per cent from 7.1 per cent for the super senior citizens on FDs with the same maturity period.
The interest rate on deposits with a tenure of more than 3 years and up to 10 years has been hiked from 6.1 per cent to 6.5 per cent for the general customers. For senior individuals, the rate has been increased to 7 per cent from 6.6 per cent on deposits maturing in above 3 years and up to 5 years. For the super senior customers, the interest rate has been raised to 7.3 per cent from 6.9 per cent on deposits with the same maturity period.
PNB Tax Saver Scheme
The general public will earn an interest rate of 6.1 per cent, and senior citizens will receive a 6.6 per cent interest on PNB Tax Saver Scheme. Staff members and retired senior citizens will get a 7.1 per cent interest in this scheme.
