New Delhi: The Indian Overseas Bank (IOB) has become the latest lender to have slashed the interest rates on fixed deposits – a move that will make FDs unattractive for investors planning to put their money in safe instruments.
The Indian Overseas Bank has slashed the interest rates on fixed deposits of various tenures by 40 basis points or 0.40 per cent. The decision has come at a time when most banks are increasing interest rates offered on term deposits.
According to the Indian Overseas Bank, investors will now earn interest at a 3 per cent rate, down from 3.40 per cent, on fixed deposit investments maturing within 7 to 45 days. The latest interest rate is effective from April 11, 2022.
Meanwhile, FD investments with a maturity period of 46 to 90 days will now fetch returns at 3.50 per cent. Previously, the bank was offering a higher 3.90 per cent interest rate on such term deposits.
Further, the bank is now offering an interest rate of 4 per cent on fixed deposits that will mature within 91 days to 179 days, down 0.40 per cent from the previous rate of 4.40 per cent.
Also, investors will now get returns at 4.50 per cent instead of 4.90 per cent on fixed deposits maturing between 180 days to less than one year. The bank has kept the interest rates on FDs maturing between 1 year to 3 years unchanged.
In the past few weeks, several public and private sector banks have revised interest rates offered on fixed deposit investments. For instance, ICICI Bank has recently cut the interest rate on FDs by 5 basis points or 0.05%.
HDFC Bank, Bank of Baroda and Axis Bank have also recently tweaked the interest rates on fixed deposit investments.
